Kicking off 2019 with a bang, MRMD stock is shooting up the charts. Valued at $3.54 USD per share, it is up nearly 4% at the time of writing.
But MariMed (OTCQB:MRMD) has been making gains across all of 2018 too. So what is this company doing that has it hot on the investor radar?
MRMD Stock in 2018
According to the S&P Global Market Intelligence, shares of Boston's MariMed shot up 371% last year. It managed to do this despite the overall S&P 500 market being down -4.4% in 2018.
The MariMed stock was also the best-performing stock in the cannabis sector, even beating out major cannabis producer Tilray (NASDAQ:TLRY), which soared 215% by comparison.
Now, starting 2019, MRMD is up 7.9% and growing.
Why MariMed?
The company had a rocketing 2018. This was the year the cannabis sector came alive off the back of an expanding global legal marijuana market. Continued growth has only exacerbated the excitement.
At the center of this growth, with a business model that sees it develop other cannabis-related businesses, is MariMed.
According to its website:
"MariMed provides turnkey solutions to cannabis cultivators, producers, and dispensaries. We specialize in solutions for securing and operating facilities, manufacturing and processing, dispensary, layouts, and designs, merchandising and sales."
By being a multi-state organization with fingers in various cannabis pies from facilities to product lines, MariMed stock has put itself in a good position to be an investor favorite. The benefit of the company's business model is the various streams of revenue it has. The company can rely on its other counterparts to stay afloat, even if one area or sector is hit hard.
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US Legalization
MariMed has been investing a lot of revenue into expansions this year. The idea is that when cannabis legalization (eventually) happens on a US federal level, it will be a major beneficiary of the new market.
Until then, MariMed is primed to take advantage of the newly legalized hemp industry in the US, with its $30 million investment in GenCanna Global—"a global leader in the hemp CBD industry."
MRMD stock is set to grow significantly off the back of this deal. Nobody can make promises here, but the hemp industry is expected to reach $20 billion by 2022.
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