Top 5 Cannabis Stocks in 2022speedgreens
The legalization of marijuana in Canada has done wonders for the industry as a whole. Canada was one of the first major economies to legalize cannabis for medicinal and recreational use; the multi-billion dollar industry is promising big returns for early investors.
As the old saying goes, “The best time to invest was yesterday. The next best time is today.”
Not all marijuana stocks are sure-fire investments. A lot of investors who got overly excited about the marijuana industry saw their fire dulled after a few months when things settled down. Alongside the potential of each stock, you have to consider political factors and where the marijuana industry is headed in Canada, North America, and beyond.
Before you start investing, do some research and watch as 2022 brings new hope and new partnerships throughout Canada’s legal weed industry.
Investing in Cannabis Stocks: What To Watch Out For
The largest U.S. Pension Fund, CALPers, recently left financial analysts scratching their heads when they revealed investments in the marijuana industry. Investing in marijuana itself wasn’t the issue – it’s a great time to put money into cannabis. The stocks themselves were questionable choices. CALPers invested in Insys Therapeutics (INSY) and Tilray (TLRY,) a Canadian marijuana producer.
Let’s talk specifically about Tilray. It’s been an exciting ride to watch, but not necessarily one that investors want to hop on in 2022. In August 2019, shares were selling for $25…in September, they hit over $200. But the growth hasn’t been consistent. As of mid-December, shares were selling for around $70 and now $5. Tilray has been a hot name in the marijuana industry, but most experts are hesitant to recommend it to investors, especially in 2022. The stock’s IPO lock-up period ends on January 15; at that time, insiders have the ability to sell their shares and it’s unclear how that will affect the stocks.
Ups and Downs
This volatility isn’t just limited to Tilray. Before you invest, it’s important to remember the marijuana industry is subject to big changes, especially in the United States. Our neighbours to the south still list marijuana as a Schedule I drug in some states, which means there is still little access for researchers who want to study its effects.
Additionally, the country’s previous Attorney General was passionately against the legalization or use of marijuana – when he was ousted, stocks soared. It’s unclear how the acting Attorney General will approach the issue of legalization, or whether he will be given the permanent job in the first place. With many companies hoping to gain profit from the 38 states who have legalized marijuana for medicinal or recreational use, politics in the U.S. greatly affect the global cannabis industry.
Luckily, our home country doesn’t have to worry about heavy restrictions any time soon. Canada is enjoying the recent legalization of marijuana. Many eyes are looking specifically toward Canadian companies who could make big profits throughout Canada (and the world) in 2022.
Consider These Investments in 2022
Innovative Industrial Properties Inc. (IIPR)
If you are more comfortable investing in real estate, you can combine your interests with Innovative Industrial Properties (IIP.) IIP is an REIT that owns medical marijuana facilities in nineteen states. Although medical marijuana is legal in 38 states throughout the United States, the country could potentially increase those numbers in the near future. IIPR is a worthy stock to consider if you are looking for long-term gains.
Cronos Group, Inc. (CRON)
Cronos Group Inc. was the subject of big headlines in 2019, when Altria announced that it would acquire a 45% stake in the company. Altria, one of the world’s largest tobacco producers, aims to eventually up their stake to 55%. The validation is exciting for Cronos and stockholders; the $1.8 billion all but secures cannabis’s future spot as a household product with the status of cigarettes. This deal is one of the first big partnerships that look promising for the cannabis industry as a whole.
Cronos Group Inc. sells cannabis products through e-commerce, retail stores, and partner channels and sold under names, such as Happy Dance and Lord Jones.
The Green Organic Dutchman (TGOD)
TGOD partnered with HelloMD, a service that allows patients to find doctors who want to prescribe medical marijuana. They also have promising international partnerships with Jamaica’s Epican and Mexico’s LLACA. They acquired HemPoland, a top European CBD brand.
The Green Organic Dutchman is one of two certified organic cannabis producers in Canada. That alone should set off some bells. Some experts say that they are late to the party…but if you are just starting to invest in marijuana, they would say that about you, too.
Another thing to note about TGOD is its plans to build an empire in the beverage industry. Marijuana isn’t just for smoking; weed beer and weed wine are projected to rake in big bucks in Canada.
TGOD has experienced some volatility (especially after their breakup with Aurora,) but with low shares and big potential, they are one of the most underrated stocks in the cannabis industry.
Village Farms International, Inc
Village Farms International, Inc is in the business of agricultural products. Last November, they acquired a 70% stake in ROSE LifeScience, a Canadian-based cannabis producer and supplier. The strategic move is an attempt to increase sales in the largest cannabis markets in Canada.
Village Farms owns Pure Sunfarms, a profitable British Columbia-based cannabis subsidiary. In addition, they recently bought a majority stake in a cannabis producer and distributor based in Quebec.
Canopy Group Corporation (CGC)
Let’s end this list with the largest marijuana stock and medical cannabis company on the market. Canopy Growth Corporation is huge, boasting over 2 million square feet of growing space, operates 10 licensed production sites, and has operations that span across 5 continents in 11 countries. They playing a big part in the marijuana beverage industry; alcohol brand Constellation Beverages bought a 38% stake in the company in August. CGC also has partnerships throughout the world and is very active in medical marijuana industries throughout Europe, Australia, and Chile.
CGC has broken many barriers in the cannabis industry, and it’s not stopping any time soon. It’s a safer investment that promises steady growth as the marijuana industry in Canada begins to recover from the global pandemic following COVID-19.
Excited yet? Ready, set, invest!