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Why This Little-Known Pot Stock Could Be the Next to Take Off!

Pot stocks have been on the rise again early in 2019 and it’s getting harder to find stocks with much upside left in the industry. A stock like Canopy Growth Corp  (TSX:WEED)(NYSE:CGC) that trades at more than 200 times its sales and has already risen more than 75% through just the first month of the year isn’t going to have much more room to grow. Only the most bullish of marijuana investors would have you believe that Canopy Growth can continue to have much more upside from here on out.

With the company significantly missing its sales targets last quarter, concerns over whether it will be able to live up to expectations aren’t going away anytime soon. In a few weeks, the company will release its next quarter’s results, and unless it makes up for that big miss, we could see another big correction in its share price. For now, the company has been riding the wave from news that it had secured a license to produce hemp in the State of New York and that it will be setting up its operations south of the border soon.

The problem is that in the U.S., Canopy Growth will face even more competition and may not be as strong a brand as it is in Canada. And so the growth options for the stock may be a bit over-hyped, yet again. That’s why investors looking for a good stock to invest in may be better off looking at other options instead.

Recently-listed pot stock shows lots of promise

Cresco Labs Inc. (CNSX:CL) started trading on the Canadian Securities Exchange back in December. The U.S.-based pot stock is involved in every step of the seed-to-sale process and is able to ensure a high quality product is delivered to its customers. By having 16 retail locations, Cresco is able to control every aspect of the customer experience, giving it a significant advantage over many of its peers, including Canadian cannabis companies that face significantly more restrictions.

The company already has a strong presence in the U.S. with operations in as many as eight states. And as more states move to legalize pot, the options for Cresco will only continue to grow. With the farm bill being recently passed in the U.S., it could also be a lot easier for Cresco to move hemp-based products across the country, without the need to have to actually operate in the state that it plans to sell its products in.

In its most recent quarterly results, the company generated more than US$12 million in sales, which is more than quadruple the revenue it generated just a year ago. The company was also able to generate a solid net income of more than US$3.9 million, a very impressive feat given that it didn’t have significant gains boosting its profits. In fact, Cresco had an operating gain, which is very rare for cannabis stocks.

Cresco is still flying under the radar and the stock could be a great buy for those looking to find a deal.

Have you heard about Amazon’s secretive “Project Vesta”?

Few people have… yet some of the greatest minds in the world believe this innovative technology could change the world.

Amazon doesn’t want anyone to know about this top-secret project, but there’s something even Amazon doesn’t know…

One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.

But you’ll need to hurry if you want to pick up this TSX stock before its name is on everyone’s lips.

To learn more about this exciting technology and dark horse TSX stock before it’s too late, click here now.

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Fool contributor David Jagielski has no position in any of the stocks mentioned.

3 Marijuana Stocks to Watch in February

Index funds

February is going to be a big month for the marijuana industry. With Canopy Growth Corp  (TSX:WEED)(NYSE:CGC) expected to release earnings on February 14 and Aurora Cannabis Inc set to do the same on February 11, there’s a lot of news to keep up with. But there’s more than just earnings to look out for. Between Aphria Inc’s (TSX:APHA)(NYSE:APHA) hostile takeover drama and a new round of acquisition mania, there’s enough going on in this industry to keep investors’ hands full for 28 days. The following are just three marijuana stocks worth watching in the busy weeks ahead.

Canopy Growth Corp (TSX:WEED)(NYSE:CGC)

Despite having recently been eclipsed by Aurora on revenue, Canopy is still the #1 marijuana stock by market cap. Its most recent earnings report was widely regarded as a disappointment, with 33% revenue growth and a $330 million loss. On February 14, Canopy is expected to release earnings that cover the period ended December 31. These will show whether revenues from legal cannabis were enough to counteract this company’s slowing growth and mounting losses.

CannTrust Holdings (TSX:TRST)

CannTrust Holdings is another pot stock worth watching in February. CannTrust stood out in 2018 for its steady operating profits when few marijuana companies were able to achieve the same. Whereas other cannabis companies pursued growth at great cost, CannTrust kept things lean and mean. The big question is which strategy will win out in the end. We may get a hint on that front this month, as the company should be releasing an earnings report for the quarter ended December 31 in the next few weeks (based on the date of its previous report).

Aphria Inc (TSX:APHA)(NYSE:APHA)

Last but not least, we have Aphria. Aphria is currently the target of a hostile takeover bid by Green Growth Brands, which is offering less than Aphria’s average 30-day share price. Because management has rejected the bid, Green Growth is going direct to Aphria shareholders. The bid is a long shot because of its low offer of 1.5 Green Growth shares per Aphria share, which would represent a loss for any Aphria shareholder who bought in January. However, many long-term Aphria shareholders purchased at lower prices, so they may be persuaded to sell.

Bottom line

Between legalization, volatile stock prices, and Canopy’s $5 billion deal, the pot industry’s 2018 will be a hard act to follow. But so far, 2019 is holding its own rather well. We’ve already witnessed a rally that has taken Canopy shares north of $65 — approaching their 2018 highs. And with earnings on the horizon, who knows what’s next. The big question is whether cannabis producers will become cash flow positive after running up enormous expenses last year. If the news is good, we may witness a new rally in cannabis stocks that eclipses even what we saw last summer.

You might be missing out on one of the biggest opportunities in Canadian investing history…

Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.

One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.

This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.

Learn More About This TSX Stock Now

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Fool contributor Andrew Button has no position in any of the stocks mentioned.