KSHB stock trades for $5.72 USD at the time of writing. As an ancillary cannabis company, KushCo Holdings (OTCQB:KSHB) is in a position to take advantage of what is now a multi-billion dollar industry. Hype and sentiment may highlight cannabis producers as the best investment opportunity. But don't be fooled; those who provide ancillary services are potentially more lucrative down-the-line.
KSHB Stock
Analyst Nigram Arora at MarketWatch makes a very intriguing argument for ancillary companies:
"During the California gold rush, many gold miners went bankrupt but the merchants who supplied picks and shovels prospered. KushCo Holdings is supplying packaging, bottles and other ancillary items to the marijuana industry."
In this case, KSHB is providing the picks and shovels to the marijuana industry. This is a lucrative position to hold in a burgeoning multi-billion dollar industry. By creating packaging and marketing wares to the myriad of cannabis producers, KushCo is in line to garner a lot of business.
More Security in Ancilliary
The most compelling argument for KSHB stock is that investors get more security in the ancillary sector than others. It's simple: there are hundreds of cannabis producers. Many of these won't last, especially those that are moving on the stock market due to hype metrics and sentiment.
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But whether successful or not, packaging and marketing materials are necessary for nigh-on 99% of cannabis companies out there. You can't enter the game unless you have the wares.
Or, in essence, you can't dig for gold without the pickaxe.
This is one reason the ancillary sector offers more surety for long-term investment than others, and that puts KSHB stock in a favorable position.
The Numbers
An American company with a prime focus on selling packaging, containers, and other ancillary products for the cannabis industry, KushCo Holdings has sold more than 1 billion units thus far. It is proving itself an industry leader with service to "more than 6,000 legally operated medical and adult-use growers, processors, and producers across North America, South America, and Europe."
KSHB stock may not be the first one to think of when searching for cannabis stocks. But this is exactly why investors should think of it. Hype and excitement draw attention to the big names and producers, but the companies servicing these will no doubt be profiting from the ever-growing numbers entering the cannabis space.
But what do you think? Would you be an ancillary investor? Do you think KSHB stock is a good play?
Featured Image: Canva
