4 Cannabis Stocks With Bright Futures Flying Under The Radar

TM editors' note: This article discusses one or more penny stocks and/or microcaps. Such stocks are easily manipulated; do your own careful due diligence. 

The cannabis sector represents an attractive growth opportunity and during the last year, we have seen a significant increase in the number of investors that are focused on this multi-billion-dollar market.

The cannabis industry is in the early innings of a multi-decade growth cycle and this is a once in a lifetime type of opportunity for investors. During the last year, we have seen a significant increase in the number of companies that are levered to this burgeoning opportunity and this is a trend that we continue to monitor.

Although there has recently been a massive increase in the number of publicly traded cannabis companies, it is important for investors to conduct significant due diligence prior to investing and today, we want to highlight 4 cannabis companies that have been flying under the radar and have significant growth prospects.

MediPharm Labs: A Cannabis Oil Leader

The first company we want to highlight is MediPharm Labs (LABS) (MLCPF), which is a leading Canadian cannabis oil producer that has significant catalysts for growth. There are a number of reasons as to why we are so favorable on MediPharm Labs and wanted to provide a quick break-down on this.

First, MediPharm Labs has been generating massive revenues following the issuance of a Sales License from Health Canada in November 2018 and this a trend that has been gaining considerable traction. The Canadian cannabis oil company has been executing flawlessly and has sourced cannabis flower/trim from 15 different LPs and has signed three supply contracts, five contract processing agreements (all of which are 3+ years in duration), and four white label sales contracts, valued at over $85 million.

Based on the agreements that it has signed and the partners that it has in place, MediPharm Labs in a league of its own and we believe that the market undervalues its growth prospects. If you look at the section below, you will see the companies that MediPharm can be compared to and will see that it has a more attractive valuation and growth profile:

  • Radient Technologies (RTI.V) (RDDTF) has a market cap of approx. $250 million is an extraction company focused on patented Microwave Assisted Processing (MAP) technology. Earlier this year, the company received its Standard Cannabis Processing License and expects to have 90,000 kg of processing capacity by the end of the year. We think the company’s relationship with Aurora is a value driver but do not believe that the valuation should compete with MediPharm.
  • Neptune Wellness Solutions (NEPT.TO) (NEPT) has a market cap that is north of $350 million and is a Quebec-based extractor. Earlier this year, the company received standard cannabis processing licensee and plans to sell extracts and finished products to businesses and consumers. The company expects to have 200,000 kg of processing capacity by March and has a strategic relationship with Tetra Bio-Pharma to co-develop formulations for wellness and pet markets.
  • Valens GrowWorks Corp. (VGW.CN) (VGWCF) has a market cap of approx. $250 million and is a vertically integrated Canadian cannabis company focused on proprietary extraction methods as well as cannabinoid isolation and purification through distillation. The company leases and operates a 25,000 sq. ft extraction facility and has an extraction capacity of approx. 72,000 kg of cannabis per year.
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Disclosure: This report was authored by and is property of Technical420. All information and data relied upon in drafting this report is publicly available. The author believes and considers its ...

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Weed Investor 1 year ago Member's comment

Which are your all time favorite cannabis stocks to invest in?