Finding undervalued stocks can be one of the best ways to turn a small investment into huge gains. Many stocks have been getting hammered over the past month, and this has created several buying opportunities for those who are willing to find them.
When it comes to pot stocks, things are no different. There are dozens of cannabis stocks trading under a dollar and many are not worth investing in at this point, but here are three stocks that could be undervalued at their current prices.
Harvest One Cannabis (TSXV:HVT) is a global cannabis company based in Canada. The company operates two cultivation facilities, which, once fully licensed, will produce over 11,000 kg of cannabis. The company is expecting to bring that up to 20,000 kg of annual production.
Recently, the company announced the acquisition of Satipharm, a health and wellness company that specializes in CBD-based products. Satipharm’s signature Gelpell technology for cannabis products has the potential to make Harvest One a global leader in the medical cannabis industry.
Harvest One has signed an agreement with Holland & Barrett, Europe’s largest retailer of wellness products, to supply 841 retail stores with Satipharm CBD 10 mg Gelpell capsules. The company also owns Dream Water, the number one selling natural liquid sleep shot. Dream Water has sold over 30 million units and is available in over 30,000 stores across North America.
VIVO Cannabis (TSXV:VIVO) is a Canadian licensed producer of premium medical-grade cannabis with over 100 years combined experience in international pharmaceuticals. The company offers high-quality cannabis and premium medical products through its Fireside, Beacon Medical, and Lumina brands.
In March of 2019, VIVO received approval for expansion at both its British Columbia and Ontario facilities, adding 4,000 kg of production. This brings the company’s total annual production to 8,000 kg by the end of 2019 and expects to increase that to 13,500 kg by 2020.
VIVO is a leader in the Canadian medical market with the company’s wholly owned Harvest Medicine operating five clinics in four provinces with over 27,000 patients. In Europe, the company has received a wholesale licence in Germany and already has 30,000 patients.
By 2022, the company expects to be making $350 million in domestic and international medical cannabis sales revenue with an additional $150 million in recreational sales. With a net selling price of $7.70 per gram, VIVO premium cannabis remains within the top tier of the industry.
48North Cannabis (TSXV:NRTH) is a vertically integrated cannabis company with two indoor cultivation facilities in Ontario. These two facilities together will provide 5,000 kg of organic dried flower annually. The company has secured distribution agreements with the Ontario Cannabis Store and the Societe quebecoise du cannabis.
48North is seeking to develop its own proprietary health and wellness products with an engaging and trusted brand. The company created Latitude, a publication focused on empowering women to connect and engage with cannabis culture, and developed a cannabis Nanospray under the company’s Mother & Clone brand.
The company is also expanding into cannabis oils with premium pre-filled vape cartridges that will be available soon. With all of these products and two operational facilities, 48North already looks attractive, yet these are not the main reasons you should look into this company.
Recently, 48North has become the first publicly traded, licensed producer approved by Health Canada to open an outdoor cannabis farm in Brant County, Ontario. The “Good Farm” will provide an extra 40,000 kg of annual production.
The organic sun-grown cannabis at the Good Farm is expected to be cultivated at the lowest cost per gram in the county, maybe the world. At $0.25 a gram, the company can produce cannabis for almost four times cheaper than the next greenhouse producer and eight times that of indoor producers.
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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 Michael Soares has no position in the companies mentioned.