2 Unknown but Intriguing Marijuana Stocks Worth Following
Motley Fool
Sean Williams, The Motley Fool
Motley FoolMarch 5, 2018
The marijuana industry is budding before our eyes, and investors are certainly taking notice. Over the trailing 12 months, most pot stocks have doubled or tripled in value as legal weed sales have soared and public opinion toward cannabis has shifted.
Within the U.S., a number of national polls have found that a record percentage of Americans are in favor of full legalization, even if the federal government hasn't budged on its current scheduling of the drug. Meanwhile, sales estimates from various sources suggest the legal pot industry in North America could grow by between 25% and 35% annually over the intermediate term. Investors looking for sustainable growth appear to have found it with marijuana stocks.
A person holding a cannabis leaf in the middle of a grow farm.View photos
A person holding a cannabis leaf in the middle of a grow farm.
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Image source: Getty Images.
But as the industry has matured, weed stocks have seemingly popped up out of the woodwork. A quick screen of cannabis-related companies returned dozens upon dozens of stocks. It essentially means there are a lot of intriguing marijuana stocks that are probably flying under investors' radars. Clearly, not all pot stocks are worth buying into. Many are still losing money and their long-term survival is far from guaranteed. However, some unknown marijuana stocks bear watching, as they possess intriguing qualities that could one day make them attractive to investors. Here are two unknown cannabis stocks I'd suggest you consider following.
Namaste Technologies
With a company name of Namaste Technologies (NASDAQOTH: NXTTF), most folks are probably unaware that it has anything to do with the cannabis industry. However, this Toronto-based company has three ways of penetrating Canada's burgeoning pot market.
First, Namaste Technologies sells vaporizers and smoking hardware products across 32 e-commerce websites in 20 countries. It's worth pointing out that more and more countries worldwide have legalized medical cannabis for certain ailments, opening the door for the importation of medical cannabis and/or hardware for cannabis consumption. Expansion in Europe, among other regions, has been critical to Namaste's growth. It's also worth pointing out that the U.S. isn't one of these markets. Namaste sold any assets related to the U.S. market last year to avoid any legal conflicts.
Second, Namaste Technologies announced the acquisition of CannaMart, a medical cannabis distribution company, in April 2017 for CA$3.55 million ($2.77 million). Not only does this transaction give Namaste access to a growing medical patient population in Canada, but it also acts as a central platform for the company to offer its vaporizers and smoking hardware. The launch of Namaste MD in early 2018, which blended these operations, essentially provides a one-stop shop for medical cannabis patients to order marijuana or any hardware online for delivery.
