As the first month of 2021 trading came to a close on Friday, it’s a good time to reflect on my ‘Eight Best Cannabis Investments for 2021” article that I posted before the first day of 2021 trading. If you invested equally in the stocks listed, you would have returned 19% year to date. Here are the results so far with the year-to-date returns:
- AdvisorShares Pure US Cannabis ETF (Ticker: MSOS): +14.5%
- Trulieve (Ticker: TCNNF): +26.4%
- Cresco Labs (Ticker: CRLBF): +19.5%
- Columbia Care (Ticker: CCHWF): +5.3%
- Ayr Strategies / Liberty Health Sciences (TICKER: AYRWF / LHSIF): +11.8% / +12%
- Green Thumb Industries (Ticker: GTBIF): +18.3%
- Power REIT (Ticker: PW): +41.3%
- Clever Leaves Warrants (Ticker: CLVRW): 23.4%
Power REIT is the clear winner so far. As I stated in my article, the company has a small market cap that still sits under $75 million. The stock was at $26 when I listed it and I still stand by my $75 price target.
Trulieve and Clever Leaves warrants are the next best performers (+26% and +23% respectively) and out of all the companies on the list, I feel the Clever Leaves warrants will see the greatest return by the end of 2021. Trulieve is still the stock I recommend first to anyone interested in owning a single cannabis stock. MSOS is still the ticker I recommend to anyone who wants a simple, well-diversified cannabis investment.
What stocks am I adding to the list now?
After a month of reading up on cannabis companies I knew little about and reviewing the stocks I knew a lot about, here are new stocks I’m adding to the list. You can check out my notes/data on the Cannabis Investor Portal. (Do your own research before making any investment decisions!):
- Trulieve Warrants (TCNWF) – the best way to take advantage of a Trulieve dip is to buy the warrants for extra leverage. The warrants have no acceleration clause and expire on 06/18/2022. More warrant details here.
- Cresco Warrants (CRLWF) – Same theme as Truleive. The warrants have no acceleration clause and expire on 09/24/2022. More warrant details here.
- Ayr Warrants (CNBQF) – I consider Ayr one of the cheapest cannabis stocks because of the low share float and low price/sales ratio based on 2022 revenue. The warrants do have an acceleration clause and expire on 05/24/2024. More warrant details here.
- Harborside (HBORF)– While the stock has had an amazing run, its price/sales is still under 1.5 and has a very low share float. The company will be a prime takeover target for anyone wanting to enter California.
- MariMed (MRMD) – Flying under the radar, MariMed operates in eight states and makes a lot of money consulting/managing cannabis operations while expanding organic retail operations. The company saw 220% year-over-year revenue growth in Q3.
- MSOS calls – If you feel the cannabis has a lot of catalysts in 2021, MSOS calls are something to consider for extra leverage.
- TPCO Holdings Warrants (GRMWF) – Never bet against Jay Z. The company has a massive California exposure and I expect these warrants and stock will shine in the second half of 2021 as earnings are released and the company gains more media attention. The warrants have an acceleration clause and expire on 01/15/2026. More warrant details here.
The opinions I’ve posted here are my own and should not be taken as investment advice. Do you own research and consult an investment professional before making any investments.
