The Top 3 Cannabis Performers of 2019


In recent weeks, cannabis stocks have struggled.

However, the long-term story is still strong and intact.  More states are approving its use.  Corporate America has quickly woken up to the immense opportunity.  The global community is racing to keep up with demand.  And it won’t be long before the U.S. full legalizes its use at the federal level.  Still, even with those catalysts, we’ve seen cannabis stocks pull back.

However, some have continued to be high-fliers, including:

Innovative Industrial Properties (IIPR)

After starting the year at just $44, the stock is now up to $119.60 a share.  In recent weeks, the stock pushed higher after another increase in its dividend.  In fact, on June 14, 2019, the company said it would pay a dividend of 60 cents a share for the second quarter of 2019.  This is now the second straight quarter that has seen the company hike its dividend.

Also fueling growth, the company has been ramping up its investment activity, having just completed a private offering of debt to raise capital.  And with cannabis now legal in 33 states and D.C., the company has quite a market for future expansion.

Village Farms International (VFF)

With the passage of the U.S. Farm Bill, hemp is seeing sizable growth.  The Bill allows for hemp cultivation and the transfer of hemp products across state lines for commercial and other purposes, notes Forbes.  Along the way, it could create a $39.4 billion market, says Markets and Markets, a marked improvement from a $10.3 billion valuation in 2018.

Helping, Governor Greg Abbott just signed into law Texas House Bill 1325, which effectively legalizes the cultivation of hemp and processing of hemp and hemp-derived products, including cannabidiol (CBD) in the State.  One of the stocks that has benefited from that growth story is VFF, which has now run from a 2019 low of $3 to $12.28.

Cresco Labs Inc. (CRLBF)

After starting the year at $6.50, the stock now trades at $10.75, recovering well off its lows.

Plus, according to the company, its “new dispensaries in Pensacola and Jacksonville provide a retail presence in two of the largest cities in Florida, which will improve our ability to capitalize on the very strong growth in the Florida market with more than 10,000 new patients being registered each week. Upon the closing of the acquisition, we project that Cresco Labs will have the fifth largest network of retail dispensaries in the state of Florida, which will provide us with an immediate meaningful presence in this market and an excellent platform for driving future growth. By the end of 2019, we expect to have up to 20 dispensaries operating in Florida, and that number will grow significantly in 2020 when our license converts to an unlimited number of dispensaries.”


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