Today we have discovered some Canadian marijuana stocks that Wall Street believes have the potential to double in value
SmallCapPower | August 29, 2019: Like the dot-com boom, it is difficult to pick which cannabis stocks will come out on top. With bullish estimates for many of these companies along with a flurry of activity taking place in the space, it can be difficult for investors to pinpoint which stocks will be the biggest winners. Often, it’s best to leave this guessing game to the experts. Today we have identified four Canadian marijuana stocks that are among Wall Street’s favourites in the sector. These stocks are estimated to generate returns of more 100%, according to analyst forecasts.
*Share prices are as at August 27, 2019, data obtained from S&P Capital IQ
Aleafia Health Inc. (TSX: ALEF) – $0.99
Aleafia Health is a vertically-integrated cannabis health and wellness company. The Company operates in four major business segments: 1) Cannabis Cultivation & Products; 2) Health & Wellness Clinics; 3) Cannabis Education and; 4) Consumer Experience with eCommerce. Operations are conducted from three cultivation facilities owned by the Company, which are comprised of: 1) Port Perry Facility, which is an indoor grow that is licensed and fully operational; 2) the Niagara Facility, which is a greenhouse in a plant-ready state that is waiting for a Health Canada cultivation license; and 3) the Paris Facility, which is a 25,000 sq. ft facility that is federally licensed for cultivation, processing and sale of medical and recreational cannabis. On July 15, 2019, the Company announced it secured a Health Canada licence amendment to increase its outdoor cultivation area at Port Perry from 292,000 sq.ft to over 1.1M sq.ft. Currently, the Company serves 60,000 medical patients. On August 14, 2019, the Company reported its Q2/19 financial results, which showed record revenue of $4M, an increase of 159% when compared to the previous quarter. Additionally, the Company strengthened its balance sheet with $58M of cash on hand as of June 30, 2019. Visit the Company’s corporate website for more information.
- Market Cap: $272.0M
- YTD Return: -30.8%
- 90 Day Average Trading Volume: 850,000
- Consensus Upside: 163%
The Supreme Cannabis Company Inc. (TSX: FIRE) – $1.32
The Supreme Cannabis Company is based in Canada and focuses on selling to the wholesale sector for the medical cannabis market in Canada. Through its subsidiary, 7ACRES, the Company operates a 440,000 sq.ft cultivation facility outside of Toronto. The Company’s portfolio also includes: 1) Blissco Cannabis Corp, a wellness cannabis brand and multi-licensed processor and distributor in British Columbia; 2) Truverra Inc., a global medicinal cannabis brand and licensed cultivator the Company acquired on August 13, 2019; 3) Cambium Plant Sciences, a plant genetics and cultivation company; 4) Medigrow Lesotho, an southern Africa-based cannabis oil producer; 5) Supreme Heights, an investment platform that works on CBD brands in the UK and; 6) a brand partnership and licensing deal with Khalifa Kush Enterprises Canada. On August 13, 2019, the Company announced its guidance for Q4/19 and Fiscal 2020, which showed anticipated revenue of $19M for Q4/19, expected to be an increase of about 449% when compared to Q4/18. The Company is predicting net revenue for fiscal 2020 of between $50M and $180M. Visit the Company’s corporate website for more information.
The Flowr Corporation (TSXV: FLWR) – $2.74
The Flowr Corporation operates a 16,000 sq.ft indoor production facility in Kelowna, British Columbia, which is capable of producing at an annual capacity of 3,100 kg. The facility is designed for an “enhanced sea-of-green” growing style that uses equal-sized plants to target maximum yields and produce the highest-quality products. The Company’s Kelowna facility is currently under progress, with a projected production capacity of 61,750 kg in 2021E. On August 15, 2019, the Company announced its Q2/19 financial results, which showed gross revenue of $2.8M and net revenue of $2.2M. Additionally, the Company experienced a 61% increase in grams sold when compared to Q1/19. Flowr announced on July 30, 2019, that it received approval from Health Canada to export clones from its Kelowna Campus to Portugal. Visit the Company’s corporate website for more information.
Valens GroWorks Corp. (TSXV: VGW) – $3.14
Valens GroWorks is a pure-play cannabis extraction company with 425,000 kg of extraction capacity. Valens has signed extraction agreements with six of the Top 10 licensed cultivators, including: The Green Organic Dutchman, Organigram, Tilray, Canopy Growth, HEXO Corp, and Harvest One. Valens also has a strategic partnership with ThermoFisher Scientific, one of the world’s leading manufacturers of lab equipment, in addition to an ISO 17025 labs accreditation, which allows the Company to conduct standardized testing for over 400 different metals, pesticides, terpenes, residual solvents, microbials, and cannabinoid profiles. On July 15, Valens GroWorks Corp announced its financial results for Q2/19. These results featured revenue of $8.8M, a 300% increase from the previous quarter and beating analyst estimates of $6.9M. The Company also reported EBITDA of $1.1M, missing analyst estimates of $1.3M. Visit the Company’s corporate website for more information.
- Market Cap: $386.8M
- YTD Return: 112.6%
- 90 Day Average Trading Volume: 503,000
- Consensus Upside: 109%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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