Cannabis companies have been on the rise in recent years, with many of them recording large annual growth figures. With the likely passage of new legislation, the marijuana industry could have a remedy for the nausea it caused investors. The focus is on the positioning for the elections and the CPI on Thursday. This is a risky move, as the price action is not yet defined and the ETF could still fall lower.
Let's review the MSOS charts and indicators to determine which cannabis companies are most successful. Green Thumb Industries ranks as one of the largest cannabis companies in the U. S. UU. It owns 77 retail cannabis stores in 15 U.
S. states. Green Thumb also has enough additional licenses to nearly double the number of its retail stores. For now, Green Thumb stocks can only be bought and sold on U.
OTC markets. But if federal restrictions on cannabis were lifted, stocks could be listed on major U. exchanges. This would almost certainly provide a great catalyst for Green Thumb. Cresco Labs, like Green Thumb, is headquartered in Illinois.
It operates retail cannabis stores in 10 states, including six of the most populous states in the U. Cresco is the leading wholesaler of branded cannabis products in the U. Like Green Thumb, Cresco Labs shares can currently only be traded on the US OTC markets. UU. Innovative Industrial Properties (IIP) helps solve cash shortages for growing marijuana companies by buying U.
S.-owned properties. medical cannabis operators and re-leases properties to them. Selling to IIP provides the cannabis operator with much needed money, and leasing agreements create a consistent revenue stream for IIP. Innovative Industrial Properties has grown significantly in recent years and now owns properties in 19 states. The company continues to generate strong revenue and profit growth, even with the recent default of one of its main tenants.
Since the PII is organized as a real estate investment trust (REIT), it returns at least 90% of its taxable income to shareholders. ScottSmiracle-Gro faces the same market dynamics as GrowGeneration. Like GrowGeneration, its shares can be traded on a major stock exchange (in this case, the New York Stock Exchange), since Scotts doesn't violate any federal marijuana laws. The company's Hawthorne Gardening subsidiary is one of the leading suppliers of hydroponic gardening products for the cannabis industry. Hawthorne should have a significant long-term growth trajectory, despite some short-term challenges. The COVID-19 pandemic affected almost every sector of the world economy, including the cannabis industry.
States and cannabis dispensaries were designated as essential businesses. Cannabis sales skyrocketed in some states during the first few months of the coronavirus outbreak, due in part to more time spent at home and increased anxiety. Marijuana producers and retailers benefited, as did the ancillary suppliers who sold garden supplies and other products to these companies. However, not all cannabis companies did well during the pandemic. Biotechnology companies experienced logistical challenges that affected sales and research progress. To a large extent, the worst seems to have happened for the cannabis market with regard to COVID-19, but some effects are still being felt. This huge industry offers opportunities for long-term investors, but it also comes with risks.
These companies create drugs and treatments for some of the biggest medical problems of our time. Companies in this broad sector can generate healthy returns. No matter what the economy is, we always need these products. When it comes to determining which cannabis companies are most successful, Green Thumb Industries and Cresco Labs stand out as two of the largest players in this space. Both companies have seen significant growth over recent years and have established themselves as leaders in their respective markets. Additionally, Innovative Industrial Properties has been able to capitalize on its unique business model by providing much needed capital to growing marijuana companies while generating consistent revenue streams for itself. Finally, Scotts Miracle-Gro has been able to leverage its Hawthorne Gardening subsidiary to become one of the leading suppliers of hydroponic gardening products for the cannabis industry.
Despite some short-term challenges due to COVID-19, Hawthorne should have a significant long-term growth trajectory. Overall, these four companies are among some of the most successful cannabis companies operating today.
