5 Top Small-Cap Marijuana Stocks to Buy for the Long Term
These under-the-radar pot stocks could run circles around their larger peers.
Sean Williams
Sep 9, 2019 at 8:00AM
When investors look back on the cannabis industry a decade from now, they're liable to find one of the fastest growth trends on the planet. Depending on your preferred Wall Street source, legal marijuana sales could hit between $50 billion and $200 billion annually 10 years from now.
However, it may not be the best-known mid-cap cannabis stocks that lead the charge higher. Instead, I believe small-cap marijuana stocks with unique business models are poised to outperform their larger counterparts over the long run. Here are five small-cap cannabis stocks you can consider buying right now that should outperform the best-known pot stocks.
A handful of dried cannabis buds lying atop a messy pile of cash.
IMAGE SOURCE: GETTY IMAGES.
Planet 13 Holdings
Arguably the most intriguing small-cap of the bunch is vertically integrated dispensary operator Planet 13 Holdings (OTC:PLNHF), which is headquartered in Las Vegas, Nevada. Unlike most dispensary operators, which are opening as many grow farms, processing sites, and retail locations in legal U.S. states, Planet 13 is focused solely on making its stores a must-see for cannabis consumers and enthusiasts.
Just west of the Las Vegas Strip, Planet 13's SuperStore is slated to be the largest marijuana retail store in the world at 112,000 square feet. For context, that's larger than the typical Walmart. Aside from a huge selection of dried cannabis product and derivatives, the SuperStore will also host an events center, pizzeria, coffee shop, and consumer-facing processing center. Since opening in November, the Planet 13 SuperStore has seen its average daily visitor count more than double, with the average ticket for paying customers rising by about $12. There's simply no other dispensary operator that can provide the experience that Planet 13 can.
Additionally, Planet 13 has done an admirable job of incorporating self-pay kiosks into its SuperStore to improve checkout speed (allthough consumers still need to wait for budtenders to package their product), and has an immaculate store layout that's designed to drive high-margin sales. With Planet 13 being incredibly transparent with its monthly sale reports, and operating in a state that's expected to lead all others in per-capita cannabis spending by 2024, Planet 13 looks like a good bet to outperform.
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