This Under-the-Radar Marijuana Penny Stock Could See Huge Gains in 2020
Marijuana Business, Stocks, Finance, & Investing November 14, 2019 MJ Shareholders 0
Vireo Health International Inc (OTCMKTS:VREOF, CNSX:VREO) is a company I’ll admit to not having paid much attention to until recently. Many marijuana penny stocks have seen their values dip tremendously over the past few months, even at the beginning of 2019 when other stocks were soaring.
But there’s something special about VREOF stock, and that’s Bruce Linton.
The former head of Canopy Growth Corp (NYSE:CGC), who took the fledgling pot company to market dominance before his sudden departure is one of the—if not the—biggest names in the legal marijuana industry.
Linton is known, not only for his business acumen—with CGC stock seeing hundreds of percentage points of growth during his tenure—but also his personality, which has made him something akin to the tech luminaries who have become synonymous with their companies (think Bill Gates and Elon Musk).
While not quite at that level, Linton is the closest thing the cannabis industry has to those figureheads.
Now, after stepping away from the biggest marijuana company in the world, he will be chairing the board of Vireo and will work closely with the CEO, Dr. Kyle Kingsley.
Following the announcement that Linton was joining Vireo Health International Inc, the marijuana penny stock shot up 26%. The spike continued, with Vireo stock seeing another seven percent gain on November 11.
“This is a science-backed marijuana company that met my criteria for best practices and a valid methodology,” said Linton. (Source: “Ex-Canopy CEO Bruce Linton joins U.S. cannabis company Vireo Health,” MarketWatch, November 11, 2019).
“This struck me as a company doing a lot of good work that nobody knows about.”
This company had not been on my radar at all, with our articles typically focusing on larger-cap pot stocks (with a few marijuana penny stocks thrown in for good measure).
Until Vireo added Linton, there really wasn’t anything exciting about the company. Quite the opposite: VREOF stock has fallen significantly since its March initial public offering (IPO).
Vireo stock has dropped 71% since it went public, and that includes the 26% gain after the November 7 announcement that Linton was joining the company.
Now that Vireo has Linton on board, maybe it’s worth taking a closer look at this marijuana penny stock. It could end up surprising us all.
Linton Juices VREOF Stock
Vireo Health International Inc, which is based in Minneapolis, was established five years ago. The medical cannabis company is active in 11 states, and has offices in cities including New York, Denver, and Montreal.
Being active in the U.S. marijuana market is obviously a boon, but there are quite a few companies working in that space right now. What separates Vireo stock from its competitors is that the company was impressive enough to draw Linton to join its ranks.
“We really looked to bring in professionals that understand science and intellectual property,” said Kingsley, mentioning that the company is “relatively unknown.” (Source: Ibid.)
Aside from being unknown, the company is small, with 400 employees.
While other weed companies, like Curaleaf Holdings Inc (OTCMKTS:CURLF, CNSX:CURA), are looking at $1.0 billion in profits, Vireo registered $18.5 million in revenue for fiscal 2018.
Vireo produces pharmaceutical-grade products for medical patients, high-potency soft gels, and vaporizer cartridges. The company has 13 patents pending, 11 manufacturing licenses, 32 dispensary licenses, and two hemp licenses.
Linton seems to believe that the future of the company is bright, with its intellectual properties poised to reap big rewards for Vireo.
While it’s too early to tell just how successful the company will be, it has immediately jumped in terms of prominence and is now firmly entrenched on my radar—and I imagine the radars of a good many other analysts.
While Linton by no means guarantees success for VREOF stock long-term, he does guarantee relevance and attention for the foreseeable future. For a company of this size, relevance and attention can be huge boons to share value.
I’m actually quite bullish on the short-term outlook for Vireo stock.
With Linton’s addition to the board, and considering how poorly the marijuana penny stock has fared since its IPO, I could see VREOF stock rise significantly for a good while yet while the Linton shine provides some warmth for the company.
Simply by adding Bruce Linton to its ranks, Vireo stock has become a must-watch. Linton is about as big a name you could hope to land in the marijuana industry, and Vireo Health International Inc—against all the odds—was able to draw the man in.
Whether the company is geared for long-term success is uncertain, but what is certain is that Vireo has created enough buzz around it that VREOF stock will likely climb for a good while yet.
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