With so many different areas to the cannabis industry, choosing where to invest can be a bit overwhelming. Although it truly depends on the individual investor strategy, finding the right areas in which one can diversify their portfolio, is a major key to seeing success when investing in the cannabis industry. For example, we mention two pot stocks that operate in two very different areas of the industry. On one hand, we have an MSO or multi-state operator. These companies work by owning and operating dispensaries based in various states in the U.S. With these businesses, it can be difficult to see major gains because oftentimes, operating expenses still outweigh profits.
This is not to say that there aren’t gains to be made here, but it is worth researching. On the other hand, we have a major pure-play pot stock. This company is notoriously volatile and has seen a solid amount of fluctuations due to being one of the largest companies in the industry. In the past year, we have seen many of the largest pot stocks in the market, become dwarfed by large sentiments of uncertainty looming over the market. With that in mind, these two pot stocks are working to move up to or stay at the top of the cannabis industry into the new year and beyond.
Pot Stock to Watch: A Multi-State Operator
Planet 13 Holdings (PLNHF Stock Report) (PLTH) is one of the leading MSO pot stocks in the industry. Although the company is an MSO, it remains with the majority of its operations in the Nevada market. Currently, the company has its flagship location which is based right off the Las Vegas Strip. The location spans as much as 112,000 square feet and holds within it everything from a coffee shop to a pizzeria and more.
The company has continuously illustrated its forward-thinking potential as a key player in the cannabis industry. One of the interesting things about the business is that it is extremely transparent. The company has consistently released its numbers every month since it opened back in November of 2018. With that in mind, it remains one of the key pot stocks to watch.
A Pure Play Pot Stock To Watch
Aurora Cannabis (ACB Stock Report) is widely regarded to be one of the largest pot stocks in the industry. The company has seen its share price drop substantially in the past year to the tune of around 65%. With a market cap still around $2.8 billion, the company is a major player in the cannabis market. The company has run into a large number of issues as it has not been able to keep up with its forecasted sales.
The hopes are that moving into the new year, the company can potentially begin to set its expectations closer toward reality. With that in mind, it remains a key pot stock to watch. Investors should, however, be aware that the company definitely has some troubles in terms of its pricing and valuation. In addition, it is extremely volatile, which is definitely something to be aware of.