If you are investing in the pot stock market game, it's not all just for laughs. It's serious biz investing your hard earned cash into a burgeoning sector.
One sure way to help make the right investment choice is to note what companies gained the most in any given period. If these are the firms heading skyward then you have to ask: Will they continue to do so?
Looking back at March, let's list the companies that packed on the most gains. March was particularly quiet for the entire pot stock market, so if a company made gains here, then it's ahead of the crowd.
Pot Stock Market Game: Charlotte's Web Holdings (CSE:CWEB) (OTCQX:CWBHF)
Leading the pack in March is the US's Charlotte's Web Holdings, which grew an impressive 33% in the month. The hemp-derived cannabidiol producer and distributor was the month's top performer for two good reasons.
The First:
- CWEB is still benefitting from the passage of the Farm Bill legalizing hemp-derived CBD across the US. With products already in 3,700 retailers, Charlotte's Web CBD has been leaping off the shelves since. Charlotte's Web Holdings is now in line to accumulate more investors, increasing its reach further. It's simple; no longer are CBD producers stifled by outdated laws.
The Second:
- A "better-than-most" quarterly report showed sales growth of 71%, a 63% increase in gross profit, and decent profits on its operations. Most of its peers are losing money on operations, so Charlotte's Web Holdings is a rarity and investors like the exception better than the rule.
>> CWBHF Stock Continues to Gain Momentum
Pot Stock Market Game: Village Farms International (TSX:VFF) (NASDAQ:VFF)
The second biggest gainer in March is Village Farms International, which added 32% in the month. Village Farms International has been growing fast in 2019, spurred on by an uplisting to the NASDAQ in February. Uplisting to a major exchange always increases liquidity and draws the attention of Wall Street. Two very good things for stock gains.
Also in February, Village Farms International pulled in a significant deal that could lead to increased revenue very soon. The company's joint venture with Emerald Health Therapeutics (TSXV:EMH), called Pure Sunfarms—a 1 million sq ft cannabis grow facility—has been licensed by Health Canada. More precisely a whopping 80% of "Pure Sunfarms' delta greenhouse cultivation space" has been licensed by Health Canada.
Pot Stock Market Game: Origin House (CSE:OH) (OTCQX:ORHOF)
Origin House also places second with gains of 32% in March. According to the Motley Fool, "Origin House galloped higher by 32% after unveiling its unified distribution platform in the Golden State and completing a debt conversion."
Known as Continuum, this distribution platform includes RVR Distribution and Alta Supply. Continuum has already landed distribution partnerships in California, which is a tough state to accrue these types of partnerships in. With the cannabis industry raking in $2.5 billion last year in California sales, Origin House is in line for a steady stream of cash flow.
The company has recently wiped off its debt from its balance sheet, giving investors "near-term financial certainty."
Be advised though, Origin House is being acquired by Cresco labs (CSE:CL) (OTCQX:CRLBF) for $1.1 billion USD. The news is very recent so the deal has yet to close and won't until May. Cresco has a plan to develop a US cannabis conglomerate and has already added Florida's VidaCann to the mix. Cresco Labs saw 23% gains in March, so investors needn't worry. If anything, they remain in line for a potentially very healthy 2019/2020.
So there you have March's best gainers! Are you playing the pot stock market game? Who are your favorites?
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