Medreleaf Corp. (fka MEDFF)

[UnderOath-KY]

2. MedReleaf

MedReleaf ranks behind Canopy Growth in current sales. I view the marijuana stock as a good pick for 2018 largely for the same reasons that I think Canopy will go higher next year.

Production capacity is likely to be paramount in 2018, assuming legalization of recreational marijuana goes as planned. I suspect that every marijuana grower in Canada will be able to sell as much as they can produce. Since April, MedReleaf has boosted its capacity by 80%. MedReleaf's production costs are also quite low, which means a nice chunk of increased revenue will flow right to the bottom line.

MedReleaf recently raised more cash through a stock offering. Acquisitions of smaller marijuana growers seem likely, in my opinion. I also think that MedReleaf could catch the eye of some of Constellation Brands' peers. The company has already identified beer and other beverages as part of its growth strategy. I wouldn't be surprised at all if MedReleaf snags a big deal in 2018 along the lines of the Constellation-Canopy partnership.

[url]https://www.fool.com/investing/2017/12/17/top-marijuana-stocks-to-buy-in-2018.aspx?source=djc&utm_campaign=article&utm_medium=feed&utm_source=djc
[/url][tag]medff[/tag]