If you are interested in investing in cannabis, you have many options. You can choose from stocks or a marijuana company. It’s important to learn as much as possible about these types of companies before you make your decision. Whether you’re buying shares in marijuana stocks or marijuana companies, it’s essential to understand the ins and outs of this industry.
Altria Group Inc. (MO)
If you’re looking for a stock that provides dividends, Altria Group Inc. (MO) is a great choice. Not only does it have a generous yield, but it also has a strong track record of increasing the dividend for over 50 years.
The company makes a variety of tobacco products, including cigarettes and e-cigarettes. Its vape line has been facing cease-and-desist orders, which could hamper its growth. However, Altria has a strong track record of product development and branding.
Although its stock is down 25% this year, it still offers investors a decent annual yield of 7.1%. And, Altria has a solid track record of dividend increases over the past 52 years.
Altria recently announced a $438 million loss related to its marijuana investment. It had been planning to buy more stock, but has instead written down its investment several times. Now, the company is trying to find a reliable way to enter the cannabis industry.
In addition to its traditional tobacco and e-cigarette products, Altria is looking to expand into the cannabis market. In 2018, the company purchased a 35% stake in Juul Labs, which manufactures e-cigarettes.
Altria has been lobbying for cannabis friendly regulations for a number of years. But the federal government has not done anything about legalizing marijuana, and it has been a tough time for the industry.
This could affect Altria’s earnings and sales. But the company is looking to regain some lost ground. By 2022, Altria expects to report 4%-7% earnings growth.
Innovative Industrial Properties
Innovative Industrial Properties (IIP) is a real estate investment trust that acquires and manages industrial properties for the medical cannabis industry. The company’s property portfolio has grown to 105 properties in 19 states. It is the only cannabis-related REIT that is authorized to be listed on the NASDAQ and New York Stock Exchange.
IIP’s properties are predominantly cultivation and manufacturing facilities, but the company also has a growing interest in leasing properties to state-licensed operators. As a result, IIP’s portfolio has increased by almost ten percent in the last year.
Currently, the company’s properties are 100% leased. Several of the tenants have signed long-term leases. Additionally, these companies have also agreed to annual rent escalators.
IIP has an excellent balance sheet, with no debt maturing until 2024. Furthermore, the company’s debt-to-asset ratio is just 12%. This allows IIPR to secure capital for future acquisitions, without worrying about debt.
In its third quarter, Innovative Industrial Properties recorded net income of $37.3 million and AFFO of $60.1 million. Both figures were up from the previous year’s third quarter. AFFO/share rose to $1.85 from $0.94 in the prior year’s third quarter.
IIPR has invested over $190 million in its property portfolio so far this year. This includes a new property in Massachusetts. By August 16, 2021, the company owned 74 properties in various states.
Innovation Industrial Properties is currently the fastest-growing publicly traded real estate REIT in the world. Investors can expect the stock to continue its upward trajectory.
MariMed
MariMed is a reputable name in the cannabis industry. It has a strong foundation and is making moves to build out its business. It could be a key player in the marijuana boom.
MariMed is a company that owns or manages cannabis operations in six states, including Maryland, Illinois, Massachusetts, Ohio, and Pennsylvania. The company has a total market cap of around $260 million.
In the past twelve months, the stock has increased nearly 500 percent. This is because the company has added a number of assets to its balance sheet. As a result, they are able to generate more profit per share than a lot of other companies.
In addition, the company has a dual listing on the Canadian Securities Exchange (CSE). This is a move that the management believes is a good move because it allows a wider audience to become aware of their stock.
MariMed has also added a candy cane flavored vape pen to its in-house brand line-up. That is a big deal for a company that is not a household name.
MariMed has also expanded its kitchen in Maryland and cultivation facility in Illinois. They expect to sell award-winning brands in their four Thrive dispensaries by the end of 2022.
The company also has an exciting opportunity to open up to 14 new stores in Massachusetts and Ohio. These are all things that can help them boost their sales and stock price.
Cronos Group
If you want to invest in the cannabis industry, Cronos Group (CRON) is a good investment. The company is a Canadian company that manufactures and distributes cannabis.
Its products are sold in the United States, Canada, and several other countries. They include vaporizers and hemp-derived cannabidiol supplements.
Cronos’ operations are divided into several segments. Some of these include cultivation and manufacturing, sales and distribution, and research and development. In addition, the company has an option to take a 10.5% stake in multi-state operator PharmaCann.
Altria has invested $2.4 billion in Cronos. As of March 8, 2019, Altria holds 45% of the company’s shares. At that point, Altria will have the option to buy the remainder of Cronos.
However, Cronos’ shares have lost more than 31% of their value this year. They trade at 8.5 times the five-year historical average.
Investors are looking for a business that has strong financials and resources. In the case of Cronos, the company has more than $120 million in cash. That cash should last for a few years.
According to the SEC’s order, Cronos violated federal securities laws. In particular, Cronos improperly reported millions of dollars in revenue. Additionally, the company failed to disclose other accounting misconduct.
As part of the settlement, the company agreed to review its financial reporting. Furthermore, it agreed to retain an independent compliance consultant. This is good news for the struggling industry.
Ancillary businesses
Investing in cannabis is a gamble. The sector is still illegal federally. However, the regulatory and legislative landscape is changing. That should lead to increased interest.
As the industry continues to evolve, investors should look for companies that have the ability to scale. They should also consider investing in companies that have the potential to benefit from the legalization of cannabis.
Ancillary businesses are essential to the cannabis industry. These are companies that provide services to cannabis growers and manufacturers. Some ancillary services include packaging and product delivery. While these ancillary services are not necessary to cultivate or distribute cannabis, they offer a chance to reap the benefits of the cannabis industry’s growth.
One ancillary service provider that is gaining a lot of attention is FundCanna. This company provides financial tools and financing solutions to cannabis companies. It also has a team of experts that can provide a variety of ancillary services.
For example, they provide software, ecommerce solutions, and lease costs for cannabis companies. Another ancillary service is Scotts Miracle-Gro, which offers equipment and supplies to marijuana growers.
Another ancillary service is 4Front, which produces edibles and pre-rolls. Both of these ancillary services are expected to experience strong growth in tandem with the broader cannabis market.
There are several advantages to investing in an ancillary business. First, it offers a low barrier to entry. Second, it can be done by an existing business, such as a retail store, or by a new start-up.
Penny stocks
The cannabis industry has gone through a lot of changes in the last couple of years. While marijuana remains federally illegal, it is being decriminalized by several states and is now available in Canada and many countries throughout the world.
Some companies have seen major gains while others have struggled to get off the ground. Luckily, there are plenty of opportunities in the weed industry to take advantage of.
Cannabis stocks are a great way to get your feet wet in the weed game. However, there are a few key questions to consider before putting your money to work.
The first question is what kind of stocks to invest in. There are a wide range of options, including penny stocks, micro-cap stocks and high-quality dividend stocks. A good rule of thumb is to choose the best company for your budget.
An ancillary business that provides services to cannabis companies is also a good choice. This can include providing equipment to the growers or selling goods that support the industry. Using this type of stock will also help you minimize your risk.
Buying marijuana stocks is a bit of a gamble. These stocks are highly volatile and can suffer a lot of short-term swings. If you’re new to investing, consult an expert before investing your hard-earned cash.
A better bet would be to invest in marijuana ETFs. These can limit some of the more esoteric aspects of the marijuana industry.
