The Canadian Cannabis Stock Price Is Currently Trading At Book Value

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The Canadian cannabis stock price has risen significantly over the last few months, and some investors are feeling optimistic. It's now trading at book value, but some believe it will bounce back. This is true for companies like Canopy Growth, Aurora Cannabis, Tilray, and Innovative Industrial Properties.



Canopy Growth



Canopy Growth is one of the most popular cannabis stocks right now. The company, which was formerly known as Tweed Marijuana Inc., is based in Smiths Falls, Ontario. Its stock price has increased by nearly 35% over the past year. The company has a strong management team and produces high-quality cannabis plants.



Canopy is the largest medical marijuana company in the world, with 10 licensed production sites and four Tweed Main Street locations. It also has operations in eleven countries, spanning five continents. The company took another impairment charge on its pot-producing assets last quarter. While it wasn't on our list of 10 best stocks to buy, this company still has the potential to grow and generate significant long-term shareholder returns.



Tilray



If you're looking to buy marijuana stock, Tilray has become a hot pick. Earlier this year, it became the first Canadian company to export legal marijuana to the US. Its drugs come in the form of capsules and are now being tested in a clinical trial at the University of California at San Diego for the treatment of essential tremor, a condition that causes involuntary shaking, which makes it difficult to perform everyday tasks. The trial is expected to start early next year.



While it's too early to tell whether cannabis will be legalized on a federal level, Tilray is well-positioned to benefit. The company has options to control MedMen, a hemp company. Its products and distribution infrastructure are in place to take advantage of the pending federal legalization.



Aurora Cannabis



Investors in the Canadian cannabis stock market are experiencing some uncertainty. While the cannabis industry remains in flux, investors should remain aware of the risks and diversify their investments accordingly. Wall Street analysts remain cautious and are digesting the dilution from the bought deal offering. Nevertheless, management has guided for positive adjusted EBITDA in the first half of fiscal 2023.



The company is growing cannabis for recreational and medicinal use. Its products are sold under a variety of brand names. It is primarily based in Canada but has facilities in more than 20 countries.



Innovative Industrial Properties



The stock of Innovative Industrial Properties, Inc., or IIP, is on the rise after it became one of the few publicly-traded cannabis companies with a healthy dividend yield. As a real estate investment trust, IIP focuses on acquiring and leasing industrial properties to marijuana growers. These leases provide the company with cash flow that is then used to repurchase the properties or invest in new ones.



The company is not immune to risks, however. For example, cannabis could become legal at the federal level. If it does, this could undermine the REIT's business model with pot companies. However, legalization would also help cannabis companies access more financial services.







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