There are many people who are looking for answers to the question, are cannabis stocks a good investment? The truth is, there are a variety of different companies in the industry. These include Charlotte's Web, Aurora Cannabis, Cronos Group Inc., and Tilray. Getting information on these companies is crucial to making the right choice.
Cronos Group Inc.
Cronos Group is a mid cap pot grower and distributor headquartered in Toronto, Canada. It has a diversified portfolio of hemp derived products, including cosmetics, and cannabis for medical purposes. The company is operating within Health Canada's Access to Cannabis for Medical Purposes Regulations.
During a recent internal investigation, Cronos uncovered a $2.3 million accounting error. Not only did the company discover the error, they also took the bold steps of appointing an independent compliance consultant to help remedy the situation. This tidbit is a good example of how a company with a growing business can take steps to improve its financial health.
In addition to its extensive internal accounting and compliance efforts, the company has taken advantage of the legalization of recreational marijuana in Canada to boost sales and build the brand. Although the federal government still isn't ready to legalize marijuana nationwide, it's not impossible to imagine a future when this could happen.
Tilray, Inc. (NASDAQ:TLRY) is a vertically integrated cannabis cultivator and processor, offering products under many different brands. It sells its products to consumers, researchers, physicians, hospitals, and other healthcare professionals.
The company operates in Canada, the United States, and Europe. Its main divisions are Cannabis and Hemp, Distribution, and Wellness.
Tilray's main business is in the cultivation, production, and sale of cannabis for medical purposes. It also offers hemp-based foods, craft beverages, and wellness products.
Its international division is smaller and focuses on the export market. In the third quarter of this year, Tilray generated $168 million in net revenue.
Tilray has a total of 2,100 employees. It also owns a distillery, Breckenridge, and the SweetWater brewing co. They produce beer with a cannabis-flavor that smells like marijuana.
Charlotte's Web
If you are looking for a good investment in the cannabis space, then Charlotte's Web stocks could be the ticket. The company produces products that are not only effective but also are made from high quality hemp extracts. They are tested by major independent third party laboratories, and meet industry standards for purity.
Charlotte's Web has been around since 2013, and it is one of the largest hemp-derived cannabinoid (CBD) wellness companies in the world. It has a wide range of products, from topical creams to gummies, which it distributes through its online and retail outlets. It has a vertically integrated business model, and its main product lines include Charlotte's Web(tm) CBD and Harmony Hemp.
In the last year, the Charlotte's Web stock has been in a downward cycle. Although the stock price has risen recently, the market is still skeptical about the future of the company.
Aurora Cannabis
If you're looking for a contrarian bet, Aurora Cannabis is it. The stock has fallen by nearly one-third over the past three years. While there is no guarantee that this investment will be a win-win, it's a risky gambit that could pay off.
Aurora has a competitive advantage in the medical market. Its product assortment includes brands for concentrates, vapes, and sublingual films. However, the company has struggled with operational inefficiencies.
Aurora's gross margins have been on the decline for the past three years. The company is also losing market share. In May, the company closed its cultivation site in Canada.
Since then, the Aurora Cannabis stock has been in a downward spiral. Its market cap has dropped to $2.1 billion. This is a drop of more than 90% from its December 2018 high.
New Cannabis Ventures' Global Cannabis Stock Index
If you're interested in investing in the cannabis industry, New Cannabis Ventures' Global Cannabis Stock Index is a good choice. The Global Cannabis Stock Index has rallied 3.4% since the beginning of 2021, outpacing the S&P 500's 1.9% increase.
New Cannabis Ventures is a company that manages a number of proprietary indices. These indices help investors monitor publicly-traded cannabis companies. In addition, the company offers a summary of BDSA's monthly cannabis sales data.
The company manages seven indices. In addition to its flagship Global Cannabis Stock Index, the firm also manages the Canadian Cannabis LP Index, the American Cannabis Operator Index, and the Ancillary Cannabis Index.
The NCV American Cannabis Operator Index is down 1.9% in November. This index focuses on leading cultivators, processors, and retailers in the U.S. It also includes companies that license intellectual property.
