Three Cannabis Stocks to Own as CBD Goes Mainstream

0
251
Close-Up Of Marijuana Plants

The CBD market has become explosive.

For one, cannabis beauty and wellness products have now gone mainstream.

In fact, as CBD-infused products just find their way onto the shelves of Sephora, Barney’s, Estee Lauder, and Ulta Beauty, analysts believe the trend could be a significant catalyst.

“We have seen a high level of interest in cannabis beauty from retailers over the past month based on our store checks and incremental launches. We expect further retailer developments in the coming months,” noted analysts at Piper Jaffray, as quoted by CNBC.

Given sizable interest, Piper Jaffray believes the CBD market could be worth up to $100 billion.

One of the many companies pushing into retail is Green Growth Brands.

It also just opened its first Seventh Sense CBD shop in Kentucky, where it is selling botanical therapy CBD-infused personal care and beauty products, including a CBD-infused body lotion, muscle balm, body wash, bath salts, a sugar scrub, a bath bomb, lip balm, and face oil.

Two, Tilray Inc. (TRLY) just made a big move into the CBD space.

TLRY just agreed to acquire Manitoba Harvest for $317 million in cash and stock.

Following the purchase, Tilray has plans to launch CBD-derived products in the U.S. as early as this summer.  “It’s a large opportunity,” says Tilray CEO Brendan Kennedy.  “If I think about hemp and CBD derived from hemp, it seems to be the hottest ingredient across the natural foods industry, across the beauty, body care and cosmetics industry. It just seems like there is a lot of interest in that particular ingredient today.”

Going forward, the two are expected to introduce a line of CBD-infused tinctures, a CBD spray and CBD gel caps.  “We have retailers who have expressed a lot of interest in that, in states where it’s more friendly,” says Manitoba Harvest CEO Bill Chiasson.

Three, this is just the start of the CBD boom.

With sizable CBD-catalysts, it’s not a surprise that analysts at the Brightfield Group believe the market could be valued at $22 billion over the next three years.

In addition, with further legalization likely throughout the U.S. we could be looking at the Gold Rush of 2019.

Three of the Best Cannabis Stocks to Own on the Boom

Opportunity No. 1 – Green Growth Brands (GGBXF)

The company, whose goal is to become North America’s leading retailer of cannabis and CBD products, is preparing to market its CBD personal care products under its Seventh Sense Brand.

It also just opened its first Seventh Sense CBD shop in Kentucky, where it is selling botanical therapy CBD-infused personal care and beauty products, including a CBD-infused body lotion, muscle balm, body wash, bath salts, a sugar scrub, a bath bomb, lip balm, and face oil.

However, this is just the start for GGB, which is looking to launch stores in malls across America, signing prime lease agreements throughout the U.S. In fact, it just recently entered into an agreement to gain access to 108 prime shop locations operated by Simon Property Group.

Opportunity No. 2 – Canopy Growth (CGC)

CGC just announced it would make a significant investment of $100 million and $150 million to create a large-scale hemp production facility in New York over the next 100 days. It’s currently looking at sites in the Southern Tier of the state, notes Bloomberg.

In addition, “Canopy has been preparing for and investing in this opportunity [CBD] for several years now, through strategic acquisitions, infrastructure expansion, and extensive internal research and development,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “With the door now open, we are moving fast to bring our considerable resources to establish the same market leadership position internationally that we have earned in the Canadian cannabis market. Canopy has a strong supply of CBD, a significant channel presence, the IP to drive the CBD industry forward to the benefit of consumers, and the balance sheet needed to act now.”

Linton added that its “on track” to have products with hemp-derived CBD in the U.S. by the fourth-quarter of 2019 or the first quarter of 2020. 

Opportunity No. 3 – MedMen Enterprises (MMNFF)

Together with its subsidiaries, it operates as a cannabis company in the United States. The company cultivates, produces, possesses, uses, and distributes/retails cannabis in the recreational and medicinal cannabis marketplace.  The company operates 19 licensed facilities in California, New York and Nevada, and recently obtained a license to do business in Florida.  In addition, it landed “prime retail locations” in Florida, with leases in Miami Beach, Ft. Lauderdale, West Palm Beach, and Key West.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.