Origin House (fka ORHOF)

[JohnCM]

The 10 Best Marijuana Stocks to Buy in 2019

12/11/2018 12:07pm EST
By Josh Enomoto, InvestorPlace Contributor

Categories: Stocks to Buy

Any cursory look at the markets would reveal that 2018 wasn’t the best year for investors. That goes for speculative assets as well, including marijuana stocks. Although going green has proven net positive for the early birds, the sector tanked heavily during the October selloff. Still, I wouldn’t drop them from your list of stocks to buy just yet.

Despite their well-publicized fall from grace, several marijuana stocks have stabilized from their severe correction. While that’s no guarantee that the industry is done spilling blood, the deflated prices will almost certainly attract speculators. Should enough risk-takers enter the arena, publicly traded cannabis companies will jump higher, even if it’s only a temporary swing.

However, some other factors suggest that marijuana stocks may enjoy a sustained rise. First, none of the big waves currently spooking benchmark indices affect the legal cannabis industry. Whether it’s political unrest in the Middle East, the spiraling protests in Paris or the ugly Huawei controversy, marijuana for now is mostly a North American issue.

Second, medical cannabis potentially offers significant social utility. A stunning Bloomberg article analyzed whether Gilead Sciences (NASDAQ:GILD) made the right business decision in producing a drug that cured diseases rather than managing them. The perception exists that big pharma companies should focus primarily focus on revenue generation rather than medical breakthroughs.

On the other hand, medical marijuana companies have no such quandaries. Because they are typically much smaller outfits, they don’t mind the inability to patent a naturally occurring plant. If anything, an organization that produces a proven, effective cannabis strain would represent a buyout target. This asymmetry challenges big pharma, but makes marijuana-based pharmaceuticals among the best stocks to buy.

While the sector remains risky, the deflated market environment offers attractive deals on these 10 marijuana stocks.

Tilray (TLRY) - No. Overpriced.


Canopy Growth (CGC) - Yes. But buy the dips.


Cronos Group (CRON) - Hold.


Aurora Cannabis (ACB) I can do without.


Auxly Cannabis (CBWTF) - No way. Dilution to the max.


Origin House (ORHOF) - Yes!


Marimed (MRMD) - Too many other great names.


Medmen Enterprises (MMNFF) Great brand. Do not trust management. Dilution big time.


Aleafia - I prefer Trulieve, Charlotte's Wed, Curaleaf and CV Sciences.


Diego Pellicer Worldwide (DPWW) - ??

Or you can lose every cent that you put in