The marijuana story is growing like a weed.

Granted, we’ve seen many related stocks pull back following Canadian legalization.  But the story isn’t going away.  At least, not any time soon.

Not only do 61% of Americans now support legalization, states are moving to legalize it with hopes for significant new revenue stream.  Canada just legalized its use in October 2018.  Corporate America has woken up to the opportunity, too.  In fact, Constellation Brands just increased its stake in Canopy Growth (CGC) by $4 billion.

That being the case, here are the top three pot stocks to stash away for the next decade.

OrganiGram Holdings (OGRMF)

 OGRMF produces and sells medical marijuana in Canada. As Canada moves to legalize marijuana use on the federal level, the company is ramping up production to capitalize on new market opportunities as an existing licensed producer. An active expansion includes a 15,000 sq. ft. extract processing facility that could prove quite useful, as the market begins to explode.

Another reason to like OGRMF is its agreement with Nova Scotia Liquor Corporation.

“We are pleased to announce our supply agreement with NSLC,” says Greg Engel, Organigram’s CEO. “Our home markets have always been a key priority for Organigram and this announcement solidifies our position as the market leader here in the Maritimes. With supply arrangements in place in six provinces, we take great pride in our place as a national leader working towards a sustainable and successful adult-use recreational cannabis market.”

Canopy Growth (CGC)

CGC is also a medical marijuana company out of Canada that has considerable interest from Constellation Brands.  In fact, Constellation Brands just increased its ownership interest in Canopy Growth by acquiring 104.5 million shares directly from Canopy Growth, thereby achieving approximately 38% ownership when assuming exercise of the Constellation warrants.

“Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner,” said Rob Sands, Chief Executive Officer, Constellation Brands. “Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space. We look forward to supporting Canopy as they extend their recognized global leadership position in the medical and recreational cannabis space.”

Scotts Miracle-Gro Company (SMG)

The company, which manufactures, markets and sells consumer lawn products globally is seeing great interest as the company expresses interest in selling to cannabis growers, too. In fact, they’re selling equipment for hydroponics, a method of growing that allows for the production of cannabis after acquiring General Hydroponics.  According to The Street, “the company’s revenue for the past 12 month is about $2.6 billion.  About a tenth of that comes from their hydroponics business.  That should grow, especially now…”

 

“Pretty quickly we realized that cannabis and hydroponics were a big opportunity,” said Chris Hagedorn, general manager of Hawthorne Gardening Company and the son of Scotts Chief Executive Officer Jim Hagedorn, as quoted by Adage.com. “It has become more acceptable to our investor base, to our board, to our management team and the motivation is obvious: it’s a high-growth category.”

 

 

 

 

 

 

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