3 Marijuana Stocks to Watch This Spring

I present three pot stocks that are poised for strong growth, including CannTrust Holdings Inc (TSX:TRST)(NYSE:CTST).

| More on:
edit Cannabis leaves of a plant on a dark background

Image source: Getty Images

The cannabis stock sector is currently the hottest sector, and you can make big money by buying pot stocks. However, while there are many companies that are trading publicly to choose from, you should be careful, because not all of them will survive in the long term.

To help you in your choice, I’m presenting three promising pot stocks that could boom in the coming months.

CannTrust Holdings (TSX:TRST)(NYSE:CTST)

CannTrust is one of the fastest-growing medical marijuana producers in Canada. Indeed, according to Health Canada, CannTrust is capturing 36% of all new registered patients. The Canadian medical marijuana market is big, with a value of approximately $1.2 billion, and this number is expected to double in the next five years. So, the growing medical marijuana market will benefit greatly to CannTrust with increased sales.

CannTrust has a solid production capacity, as it is targeting an annual production capacity of 100,000 kg by the second half of 2020.

What also makes CannTrust stand out is its low production cost. The company currently has a production cost of $0.83 per gram, which makes it very competitive. Its target production cost is only $0.25 per gram. CannTrust expects to achieve this target in part through cannabis flower genetics innovations.

Finally, the company has partnered with Breakthru Beverage Group, a leading distributor of alcoholic beverages, to distribute cannabis in Canada. Breakthru will establish a cannabis-focused sales brokerage company and develop a route-to-market platform for recreational sales.

CannTrust began trading on the NYSE on February 25. Peter Aceto, the company’s CEO, expects that the NYSE listing will result in an expanded institutional and retail shareholder base, increased capital markets exposure and firmly establish CannTrust as a global company.

Greg Guyatt has been recently hired as chief financial officer; he has experience in international capital markets. This move is in accordance with the company’s goal to accelerate its growth both domestically and internationally.

Green Organic Dutchman (TSX:TGOD)

Green Organic, an organic cannabis producer, began trading on the TSX in May 2018.

Green Organic is the largest licensed producer of 100%-certified organic cannabis in Canada. This is an advantage, since demand for organic cannabis is expected to grow rapidly, as consumers are becoming more health conscious and aware of dangerous synthetic products such as fertilizers and pesticides. The pot producer has lower energy costs due to its partnership with power management company Eaton.

Green Organic has operations in Canada, Europe, the Caribbean, and Latin America. The company plans to build a 40,000-square-foot R&D centre, which will have space to develop new products, such as cannabis-infused drinks.

A few days ago, Green Organic signed a multi-year cannabis and hemp extraction deal with Valens GroWorks. This partnership is set to allow for the early market entry of Green Organic’s organic hemp-derived CBD product lines within the coming months.

Organigram Holdings (TSXV:OGI)

Organigram is a company listed on the TSX Venture whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada. It offers high-quality, in-grown cannabis for the medical and the recreational market.

Organigram has distribution in place for all 10 Canadian provinces. This company is one of the only three Canadian licensed producers to have secured distribution agreements with every province, along with Canopy Growth and Aphria.

Organigram is also developing international business partnerships to extend its global footprint.

In addition to offering dried cannabis and oil products, Organigram is also well positioned to take advantage of the edible products market, which has strong potential, through its deal with TGS International.

The company is also expanding its production capacity and is expected to reach 113,000 kg by the end of 2019. This is up from 36,000 kg as of the end of 2018.

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 Stephanie Bedard-Chateauneuf owns shares of Aphria Inc. and Canopy Growth.

More on Cannabis Stocks

A cannabis plant grows.
Cannabis Stocks

TLRY Stock: Here’s What’s Coming in 2023

Tilray Inc. (TSX:TLRY) is geared up for big growth this decade and looks like one of the top cannabis stocks…

Read more »

A person holds a small glass jar of marijuana.
Cannabis Stocks

Canopy Growth Stock: Here’s What’s Coming in 2023

Canopy Growth stock has made a lot of new moves in the last few months, but where is the company…

Read more »

A cannabis plant grows.
Cannabis Stocks

Better Cannabis Buy: Canopy Growth Stock or Tilray?

Only two TSX weed stocks can deliver substantial returns in the highly anticipated growth of the global cannabis market.

Read more »

Medicinal research is conducted on cannabis.
Cannabis Stocks

Is Tilray Stock a Buy in January 2023?

Tilray stock has lost 50% of its value in the last 12 months, in line with its peers.

Read more »

Pot stocks are a riskier investment
Cannabis Stocks

Are Cannabis Stocks Still a Thing in 2023?

The whole question of whether cannabis stocks are still relevant in 2023 is an interesting one. Here's my take on…

Read more »

A cannabis plant grows.
Cannabis Stocks

Why Canopy Growth Stock Fell 72% Last Year

Canopy Growth stock is a beaten-up cannabis giant that is trading at a discount compared to historical multiples. But is…

Read more »

Cannabis grows at a commercial farm.
Cannabis Stocks

Is SNDL Stock a Buy in January 2023?

SNDL is among the worst-performing cannabis stocks in the last three years. But is SNDL stock a buy right now?

Read more »

a person watches a downward arrow crash through the floor
Cannabis Stocks

Why Tilray Stock Fell Almost 60% in 2022

Tilray is a Canadian cannabis stock that is down 93% from all-time highs. Let's see if TLRY stock is a…

Read more »