You probably have not come across this information, but the truth is that the marijuana industry is steadily rising across the world. If you do not get that right, your preferred source in Wall Street will show you the industry that could be worth over $200 billion in annual sales in just ten years.
With the growth of the industry, marijuana investors are now pondering on the best marijuana stocks to invest in to take advantage of the industry growth.
If these investors were to consider Wall Street stock projects only, then only three of the many marijuana stocks would emerge at the top. But most cannabis shares are expected to increase in value, and the three shares would likely triple in price from their current values according to Wall Street predictions. Now let’s take a quick preview of these three companies to determine if they are legit or rip-offs.
The stock in our review is Aleafia Health (OTC-ALEAF). The stock finalized the past week in Canada with a stock value of CA$0.90, which is equivalent to 90 Canadian cents. However, the company has a Wall Street consensus target of 3 Canadian shillings per share.
Aleafia also joined hands with the pharmaceutical company Emble in a move which is widely regarded as a game-changer for the company. The two companies are in the medical clinics’ sector, and their roles include prescribing marijuana medications to some patients and also helping these patients with their cannabis products. With the effectiveness of medical marijuana, most cannabis users have been optimistic due to its benefits since when adult-use was outlawed in March.
Furthermore, after the Aleafia Health-Emblem merger, the two companies now enjoy a higher cash worth, which increased funding for their production to 138, 000 kgs each year. Besides, their merger also boosted Aleafia’s Health to become one of the top marijuana industry players. Aleafia also boasts of a processing plant which comprises of 25, 000 square ft. Goods innovation center and an annual extraction plant with 50, 000 kilos extraction capacity. The extraction plant completion is pending, and the two buildings prove the firm’s extensive supply chain starting from the seeds to the sales.
The only uncertainty on the Aleafia Health Company is whether the company can clearly market each product to attract both domestic and international cannabis supply deals in the highly competitive cannabis industry. To build its presence in the market, Aleafia will need not only to produce the best product but also be a company with high capital to realize the Wall’s Street target price projection.
However, while Wall Street’s projection may be unrealistic or too high, Aleafia Health’s value projection is quite amazing.
iAnthus Capital Holdings
The second-best Cannabis stock with higher price projections in the U.S’s iAnthus Capital Holdings (OTC: ITHUF). The company operates in the dispensary sector. During last week stocks, the company shares cost $2.13 per share, but the Wall Street projections on the company’s share cost are $8.23, which implies an increase of 286%.
Most U.S based dispensary operators appeal to most people its market has a higher potential. But unlike its Canada counterparts, the U.S should outrun Canada in legal sales to boost the integrated model’s popularity. Currently, iAnthushas more than 48 retail licenses. Also, it is now operating in 11 U.S states with 27 open dispensaries as of their latest press release.
iAnthus is also expanding its lucrative U.S market presence with the company acquiring a property in Nevada. Despite Nevada having a small population, the state will have the highest per-capita funds in 2024 due to cannabis projects.
iAnthus also has an acquisition in Florida, which so far supports medical, marijuana. However, according to a forecast by BDS Analytics and ArcView Marker Research, Florida state will bag the third-highest annual cannabis sales in 2024.
Earlier this year, iAnthus seems to have overpaid for its purchase of MPX Bioceutical property. The company’s made some mistakes, and it was evident on its balance sheet balance of CA$440.7 million in comparison to its assets worth CA$811 million. In my opinion, this is the reason iAnthus price forecast is far away from Wall Street’s target, as they expect a downgrade soon.
For higher potential cannabis stocks, marijuana stocks the Greenlane Holdings (NASDAQ: GNLN) takes the lead. The Greenlane company is among about twelve companies which trade on the major US exchanges, finalized their shares with a cost of $4.54. However, their Wall Street projections are $20.10, which implies the expected upside to be 343%.
Greenlane holdings main feature that attract Wall Street is its eminence in the tobacco and cannabis accessories supply industry. What’s more, the company has over 11 000 stores in North America, which makes it a prominent trader in the Cannabis market. The accessories holdings will benefit immensely from the Cannabis industry as Canada prepares to introduce derivative products within three months.
However, Greenlane is experiencing two hurdles at the moment. The first challenge is the U.S-China trade war, though only a few core accessories and products come from China to the U.S.. China is likely to increase the tariffs for these manufactured products, which will reduce the company’s sales and profit margins.
Secondly, there increasing concerns about vaping dangers in the United States. According to the Center for Disease Control and Prevention, by last week alone, 530 vaping-related lung illness was reported, which resulted in eight deaths. Despite it being a small percentage of U.S vaping users, it remains a pressing issue considering the cause of lung illness is currently unknown. Vapers are Greenlane’s primary source of income and success, and this makes the Wall Street projection unimaginable at the moment.