Marijuana Stocks Review

The marijuana industry has grown by leaps and bounds over the past year or so, primarily due to the legalization in Canada and in parts of the United States. The formation of the industry and the listing of stocks from many of the leading companies which have also made it possible for investors to put their money into a growing sector.

Some investors might prefer stocks which are on a strong streak of gains, while others might prefer a stock that are beaten down and could be primed for a surge soon. In such a situation, it is worthwhile to look at the stocks of two Canadian marijuana producers, Organigram Holdings (OGI) and CannTrust (CTST).

Organigram

Organigram may have been a bit late when it comes to listing on a United States stock exchange but the company has had an excellent run in the market once it did. One of the most compelling reasons behind Organigram’s is the company’s low production costs and at the end of the day, investors will always be attracted to a company that can maintain such margins. Additionally, it is also set to raise its production capacity extensively this year.

Organigram expects to produce 113,000 kilos of marijuana this year, up from 47,000 kilos a year on average over the past years. Moreover, it has also been able to ink supply agreements with 10 major provinces in Canada and has also created an international footprint through its partnership with Alpha in Germany. Organigram is also making ground to enter the cannabis edibles market in a big way next year.

CannTrust

On the other hand, CannTrust is a highly interesting company and has been one of the bigger players in the medical marijuana market in Canada. More importantly, the company has also delivered exceptional growth in terms of the number of patients it services. In Q1 2019, the company reported a 70% year on year rise in patient growth.

More importantly, CannTrust has inked supply agreements with 9 states in Canada and due to its partnership with National Access Cannabis, the company’s products will reach an even bigger base of patients in the near future. It has also projected that it is going to produce 50,000 kilos of product a year from the next quarter onwards and it will go up once the Niagara facility expansion is completed. Last but not least, the company has also forayed into international markets through partnerships in Australia and Denmark.

According to experts, Organigram has grown quite rapidly, while CannTrust’s market cap is far smaller and hence could provide a bigger upside in the foreseeable future.