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2 Weed Stocks That Could Return 100% in 1 Year

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Do you want to double your investment in one year? With the sudden rise of the marijuana industry, this is now a possibility. The full-blown legalization of the weed industry in Canada has made many investors wealthy. The result is a whole new set of promising stocks for you to take advantage of.

Despite the soaring popularity of weed stocks, however, the process of legalization has not been without its setbacks. Things in the marijuana industry seem to be looking up, and the future is promising. However, these are still relatively uncharted waters, and you need to be careful where you place your bets to help you win big.

Supreme Cannabis Company (TSX:FIRE) and Green Organic Dutchman Holdings (TSX:TGOD) are my two top picks for weed stocks that can help you return 100% of your investment in one year.

Supreme Cannabis Company

Supreme Cannabis Company is a mid-sized cannabis company based in Canada that primarily focuses on the dry flower. Dry flower refers to plant matter that has been cured and then dried with the product to make it ready for recreational or medicinal use.

The company does not sell directly to the end consumer; rather, it sells to the Canadian recreational market and Tilray. Supreme is a rising star among weed stocks.

The company has been performing well in the fourth fiscal quarter of 2019 when it ended on June 30, 2019. Supreme Cannabis has grown by a considerable margin since last year. The company is projected to record an increase of well over 400% from its fourth-quarter 2018 revenue of $3.55 million, and almost double of its Q3 2019 revenue of $9.9 million.

Supreme is a capital-efficient operator. While the king of weed stocks is Canopy Growth, Supreme Cannabis’s insane growth potential is something you should take note of when you are considering making an investment.

Green Organic Dutchman Holdings

Green Organic is another player in the Canadian marijuana industry with massive potential for high returns. As a company with a unique and clear vision within the market for Canadian stocks, TGOD wants to become the undisputed market leader for premium organic cannabis products.

While it’s a burgeoning industry, the weed industry has already become a crowded marketplace among suppliers and consumers. Green Organic wants to make a place of its own within this industry, where it might be able to charge premium prices for its products. The premiums can help the company drive higher margins for investors.

The company expects to achieve a production capacity of over 200,000 kilograms annually by the fourth quarter of 2020. Green Organic has already made supply agreements with Ontario Cannabis Retail Corp and Velvet Management.

The supply agreements are a brilliant move by the company, as it’s not only capitalizing on the growing legal cannabis industry in Canada and America, but also on the more health-conscious ventures.

TGOD has done surveys that found that over 60% of medical patients and 50% of recreational users say that they would prefer organic cannabis options. Research suggests that pesticides and chemicals used in cannabis concentrates can pose potential health risks for users.

From a purely financial perspective, TGOD’s business model uses hybrid facilities, allowing the company to limit operating costs and thus reducing the capital investment required compared to traditional indoor growing facilities.

Bottom line

They say “Don’t put all your eggs in one basket” for a reason. The higher the potential of doubling your investments, the greater the potential risks. You should be very careful with your investments and stake only what you can afford to lose when you are trying to double your money. You can never be too cautious, especially when it comes to weed stocks.

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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 Adam Othman has no position in the companies mentioned.

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