Forget Aurora Cannabis Inc.: Buy These 4 Cannabis Stocks Right Now

Stocks such as MedReleaf Corp. (TSX:LEAF) could be big winners if the cannabis market begins to heat up again ahead of legalization.

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Aurora Cannabis Inc. (TSX:ACB) made a lot of noise in the final months of 2017 and to open 2018. Of the big four Canadian cannabis producers, Aurora saw the biggest gains when the big cannabis rally began in the summer of 2017. The stock has settled of late and is down 5.9% month over month as of close on March 21. In spite of this, Aurora continues to churn out some of the highest daily volume on the TSX.

There is a lot to like when it comes to Aurora’s recent acquisitions, and if the cannabis market at large picks up, as some analysts expect, it could once again test all-time highs.

However, today I want to look at four other cannabis stocks that may have more upside in the spring and summer months before recreational legalization.

Village Farms International Inc. (TSX:VFF)

Village Farms is a Delta, B.C.-based company that owns and operates greenhouse facilities. The company has made an aggressive push into the cannabis industry, and on March 5 it announced that it had received a cannabis cultivation licence. It expects to obtain a sales licence by July 1. Shares of Village Farms have dropped 17% in 2018 as of close on March 21, but the stock has soared 270% year over year.

MedReleaf Corp. (TSX:LEAF)

MedReleaf cannot exactly be said to be flying under the radar in its industry. The Markham-based cannabis producer is one of the largest in Canada, but it has been dwarfed in the news by the three largest producers. The stock is down 12.7% in 2018 so far.

On March 19, MedReleaf announced an agreement with Cannamedical Pharma GMBH, a leading medical cannabis distributor in Germany. MedReleaf already possesses a sizable international footprint, and this deal gives it access to almost 2,000 pharmaceutical retail locations in Germany.

CannTrust Holdings Inc. (TSX:TRST)

CannTrust is a Vaughan-based medical cannabis company. It made its debut on the TSX on March 2. This listing gave it an early boost, but the stock has since faded to settle in at $8.36 as of close on March 21. On March 13, CannTrust entered a joint-venture agreement with STENOCARE, a Danish medical cannabis producer. This will provide CannTrust with a 25% stake in STENOCARE going forward.

Neptune Technologies and Bioressources Inc. (TSX:NEPT)(NASDAQ:NEPT)

Neptune is a Laval-based nutrition products company. Neptune stock has climbed 34.8% in 2018 so far and is up 200% year over year. It was recently added as one of the 10 new companies on the Horizons Marijuana Life Sciences ETF as part of its quarterly rebalancing.

In November 2017, Neptune announced a royalty-bearing licensing agreement for the use of MaxSimil technology, an omega-3 fatty acid delivery technology, in combination with cannabis-derived products. Neptune plans to position itself to benefit from the fast-growing cannabis industry and believes its nutrition solutions can mesh well with the emerging market.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan owns shares of Horizons Marijuana Life Sciences ETF.

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