Best Cannabis Stocks – My Top Picks

Which are the Best Cannabis Stocks?  Cannabis Stocks are about to take off with Cannabis Federal Legalization. And, you may want to take advantage of this once in a generational opportunity.  So, if you find yourself asking: What are the best cannabis stocks? Then, here are the Best Cannabis Stocks.  Also, you may also be wondering how to invest in stocks and that is how you came about my website: Cannabis Investing Newsletter.  In fact, cannabis stocks represent one of the greatest investment opportunities of a generation and, with Federal Legalization of cannabis about to occur, this makes cannabis investments one of the best sectors to focus on.

Because of that, you will want to know all you can about cannabis stocks, the process of cannabis federal legalization, how to invest in stocks, and finally how to pick the best cannabis stocks.

First, Cannabis Federal Legalization will mean cannabis stocks are going up.  Cannabis companies are rolling out products throughout the United States, Canada, and parts of Europe & Latin America.  So, this means the opportunity for these companies to grow is immense.  And, cannabis stocks will go higher.  Therefore, picking the best cannabis stocks will be a big priority.

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Here Are The Best Cannabis Stocks – My Top Picks

1. C21 Investments: CXXIF Q3

  • Buy-In Price: $0.50
  • Target Price: $8.31

2. Decibel Cannabis: DBCCF

  • Buy-In Price: Buy NOW; Accumulate Under $0.25
  • Target Price: $1.50 – $1.75

3. High Tide: HITI Q3

  • Buy-In Price: $5.00, $6.00, & $7.00
  • Target Price: $54.90

4. IM Cannabis Corp: IMCC

  • Buy-In Price: Buy Now @ $3.00
  • Target Price: $21.50

5. Jushi Holdings: JUSHF

  • Buy-In Price: Buy NOW; accumulate from $4.00 – $6.00
  • Target Price: $7.50

6. Lowell Farms LOWLF

  • Buy-In Price: Buy NOW; Accumulate under $1.30
  • Target Price: $32.50

7. MariMed: MRMD Q3

  • Buy-In Price: Buy NOW
  • Target Price: $7.50 – $12.50

8. Planet 13 Holdings: PLNHF & Next Green Wave NXGWF

NOTE: Planet 13 Holdings is acquiring Next Green Wave.  Target price will change with new upcoming share-count.

  • Buy-In Price: $5.50
  • Target Price: $12.50

9. Schwazze: SHWZ

  • Buy-In Price: Buy NOW; Accumulate Under $2.00
  • Target Price: $17.50 – $35.00

10. TerrAscend & Gage Growth: TRSSF & GAEGF

NOTE: TerrAscend is acquiring Gage Growth.  Target price will change with new upcoming share-count.

  • Target Price:
  • TRSSF & GAEGF: Buy Now.

11. Trulieve & Harvest Health: TCNNF

  • Buy-In Price: Buy NOW
  • Target Price: $78.50 TCNNF

12. Verano Holdings: VRNOF Q3

  • Buy-In Price: Buy NOW; Accumulate Under $12.50
  • Target Price: $61.93

13. Vext Sciences: VEXTF

  • Buy-In Price: Buy Now @ $0.58
  • Target Price: $2.50

14. YourWay Cannabis: YOURF

  • Buy-In Price: Buy Now @ $0.175
  • Target Price: $2.75

Getting Ready For The Best Cannabis Stocks & Federal Legalization

The cannabis sector is going to see tremendous growth in revenues and profits. Because of that reason, cannabis stocks are absolutely stocks to keep track of.  And, this is a once in a generational opportunity to create significant wealth in the stock market.  But, there are some 350 different cannabis stocks.  Which stocks are the best cannabis stocks to buy now?  Who has time to sift carefully through some 350 different marijuana stocks?  No one can readily do that in any reasonable period of time.  Well, no one except me.  And, I am doing just that, and I have created this list of the best cannabis stocks to buy.

I am sifting through some 350 different cannabis stocks to find out which are the best marijuana companies and which ones are a bust; to find out which cannabis stocks are the best marijuana stocks to buy now.  There are certain criteria that I am looking through to see which of these cannabis companies fit the most optimal criteria.

What are the Best Cannabis Stocks?

Best cannabis stocks with a complete list of cannabis stocks; the best cannabis stocks to for cannabis investments with cannabis federal legalizationHere are my favorite cannabis stocks.  And, here are the best cannabis stocks to buy now.  Keep in mind that I am working through some 350 different cannabis stocks to determine which actually are the best cannabis companies to buy.  I am comparing each of these stocks to each other.

By comparing each of these cannabis stocks I can get a sense of which cannabis companies are the better performing and which are going to outpace others.  Also, I have a solid idea of which are the best cannabis stocks to buy, which are the best cannabis stocks to watch, and which cannabis stocks to avoid.

These are my Top Picks of cannabis stocks to buy now.  Each of these cannabis companies is poised for long-term growth.  It is my belief that if you took a very long-term approach, owned a basket of these stocks then over a very long period of time, say 2.5 – 5 – 10 years, or more, you would very likely gain significantly with stock ownership of these cannabis stocks.

I am constantly updating this listing so you should stop back on a frequent basis.

Value Investing & The Best Cannabis Stocks

How to Invest In Stocks and cannabis stocks with cannabis federal legalizationFirst, and most importantly, I am a value investor.  I use the same exact principles as Warren Buffet when determining how valuable a cannabis company should be.  I look at certain metrics such as Revenues, Gross Margins, Total Operating Costs, EBITDA, and Net Income.

From these metric points, I determine which cannabis companies will outpace the others, which cannabis stocks are going to outperform other stocks.  This is the same investing methodology used by the greatest value investors of all time such as Warren Buffett, Charlie Munger, and others.

The Pace For The Best Cannabis Stocks

Investing For Beginners where I teach investing for beginners using cannabis stocks as the basis so that beginner investors can learn about investing in stocks and cannabis stocks and cannabis investments makes money for beginner investors for value investing using cannabis stocksCannabis stocks are going to move rapidly.  As companies begin production we are seeing revenue growth rates in excess of 100% annually.  And, while some companies may outperform an existing industry, no other industry on a whole is ramping up as quickly as the cannabis industry and outperforming the entire economy.  Also, marijuana stocks are moving higher because of it.

The stock market is moving higher simply because of economic factors.  But, cannabis stocks will move higher at a much faster rate at some point in the very near future.  You will be able to watch some of these marijuana stocks move upwards as the industry expands.  You can keep pace with the broader industry by watching the revenue growth rates of various cannabis companies.

The Best Cannabis Stocks & Gross Margins

Gross Margins are the measure of how much gross profit is made from revenues after a company deducts product costs.  The only two numbers in this are total revenues less cost of goods, divided by total revenues.

Basically, the higher the gross margins the more money is kept after a sale for the business; you want the highest possible number.  Knowing this is one of the first steps in knowing how to invest in cannabis stocks.

Operating Efficiencies & Total Operating Costs

What are Total Operating Costs? Total Operating Costs are those costs for running a business not associated with actually making the product (That would be determined by total gross margins).  So, Total operating costs are Sales, General, & Administrative.  Also, Depreciation and Amortization are factored from this.

Typically, as they suggest, costs associated with sales, generally running the business, and other administrative costs such as executive payroll are deducted from this.  But, with costs such as rent, any expense for rent to manufacture a product would be deducted from gross revenues in the section above whereas rent for administrative expenses would be deducted from total operating costs.

What remains after these deductions is total operating profit.  But, if you retain deductions and amortization, what you have is the pre-tax core business costs; this is also called EBITDA.

EBITDA Profits

One measure that is especially helpful to fledgling cannabis companies is EBITDA profitability.  This measure determines if the core business could be profitable and how soon that may be.

The core business expenses, cost of goods and operating expenses typically have a fixed amount with salaries and rents.  Given that, if there is enough volume moving through the company then profitability can be achieved via economies of scale and ramped up productivity.

Once a company achieves EBITDA profitability, the likelihood of net earnings positive increases significantly.  But, EBITDA profitability does not necessarily mean the company is profitable.  This is only one line in the financial statement (Please note: EBITDA is a very useful tool for new companies but not as useful with companies that are already profitable.  Also, although is very useful and widely used with new companies EBITDA is not a GAAP metric).

22 thoughts on “Best Cannabis Stocks – My Top Picks

  1. What do you think about Halo Collective dividing into seperate US and non-US (Africa, Europe, and Canada) companies, with the international company to be named Akanda >
    as described in their hour long June 25 presentation ?

  2. I’m just curious how the “best bang for your buck” philosophy, enters into the picks you choose as your favorites. I mean, if a company is only a double-your-money play, like PLNHF, shouldn’t this take a back seat to a company that has a target 30 times higher than your entry? Or are you only picking according to your fundamental scheme of valuation? It’s an interesting question, since, if you believe a company will 30x your money (let’s say), but it’s fundamentals don’t look quite as nice as a 2x your money play, should the 2x play make it to your favorites, while the 30x play remains in your list of the top 100 companies? An argument could be made that the 30x play deserves more weight, when considering what companies you would actually buy. For example, if you believe Halo will survive, and grow in profitability, with an entry price today of .026, the upside there could be astronomical … especially with all the dispenseries they are throwing up. Anyway, this occurred to me, as I consider what companies to actually buy, and which ones to put more money on.

    1. Just wanted to say hello and thanks for the question/comment on the site.

      You are correct that there are times when going in on a long shot merits a lot of consideration. There are a few considerations I look for. I want to see continuously increasing revenues, no matter how a company gets there. The real stand-out for me is first, clearing EBITDA profitability. Then, with increasing revenues, and EBTIDA profitability, all a company has to do is continue increasing revenues and net profits are next. Given that, what could the company be worth from a Discounted Cash Flow point of view.

      While there are some long shots that could merit consideration, I usually try to instill a little bit of measure of safety in my considerations. All cannabis stocks are undervalued so, you don’t need to necessarily bet the ranch. And, considering the longterm prospects of some of these companies, there is going to be a lot of future growth.

      Bottom line, I consider these things but, I’m also balancing the considerations.

      1. @flashinghatsyahoo-com 

        Hey Carey… waiting on the next financial data which, that should be around the corner.  I have about 85 stocks that have reported so far for Q4 2021.  The rest have been delayed.  We are already seeing financial data from Q1 2022 and I have about 35 companies that have reported.  

        When BHNGF stock reports, I will be doing a big write-up on them again.  

      2. Hey Carey…

        Interesting question, actually.  Thing is, CLVR has not achieved EBITDA profitability yet.  But, they have a lot of upside.  IMCC may be set up better and likely to really get going with Germany going cannabis legal and with its new pharmacies they have a strategic partnership with.  I might have to lean toward IMCC a bit more.  But, interesting question.

  3. Hello same question about halo collective, to early to answer as I have being a shareholder for 3 years now and did own 1.6 M shares until the 100-1 reverse split,
    So what do you see when they finish spitting the company in two ,now that they are away
    from the 280E ,

    1. Hey Larry… it looks like you do NOT get shares of the newly formed Akana company. Instead, Halo is simply going to sell it and then keep the proceeds for operating capital (as best I can tell).
      I still believe in the industry but, as many have put it, it is tough to stay believing in some of the things these guys do. The spin-off is one of those things. Why?
      I’d say you are in for the long haul and, it is very likely that you will see some return. But, if we see any kind of surge out of the ordinary like what we saw back in February, no reason to stay holding. Put together a plan and, if there is a big spike upwards in cannabis stocks, get out of this one and find some others that make more sense holding longterm.

  4. Dennis…
    Thanks for this.
    I am going to update each stock throughout this quarter. I just did Verano yesterday and updated the targets and buy-in pricing. As I do analysis on each of these stocks, I’ll change up what needs to be changed. For now, everything is fairly up-to-date, albeit the current stock prices are below the buy-ins.

    1. @dhtaylor 
      Sir who do you think is the stronger for growth DBCCF Decibel Cannabis vs KHRNF Khiron Life Science?  
      Can i get your email address instead of replying please.
      thanks,  Carey

      1. @gtosali1967 I have a position in Decibel. They seem attractive enough to me even for a take over. But yes…why would you not want the response public in the forum? Many here subscribe for these kinds of conversations. 

      2. I’ve replied via email on this. I will copy & paste the reply (I’m in the WordPress app right now). Basically, I said I like decibel now because I can see it’s potential. But, Khiron will see big upside potential that is still difficult to figure out now as they ramp up, and Germany goes legal.

  5. Hi D.H. Have you done an up dated list on your favorites? I like Curaleaf, Cresco and Columbia Care because they all have a number of dispensaries, seem to have good management and are down right now. I know all cannabis stocks are down now but they may come back quicker because of their holdings.

    1. @rgrace970msn-com 

      Hey Ron… Not certain why, but just seeing this posting for the first time.  I usually get alerted to new postings and am pretty good about following up.

      Yes… and even more so than back in March, cannabis stocks are being brutalized.  As for this particular list, I am working through all 110 cannabis stocks and doing DCF calculations when I can, then inputing the data into my Top Picks page.  So, I will continually be doing info on this.  

      Also, you will want to check out the posting on “Most Undervalued Cannabis Stocks” where I have a continuous update on the DCF calculations showing the latest stock prices versus my intrinsic value.  

      What I have been doing, and have been pretty good at being consistent at, is I am updating all of these pages toward the end of the week depending upon @Karolina and I doing updates to the data.  

      I may start sending out weekly emails to start the week with an update on each of these so that individuals can see the continuous updates.  

      These stocks will turn upward.  We are just waiting for the process to work its way through.  

  6. @Carey Patton- I own CLVR in my portfolio and about a month ago it jumped over 200% just in one day.. 
    Ones Legalization takes place these guys will be in a good position or they could get sucked up by one of the big players. 
     

  7. I have quite a lot of Decibel,  im still Red since i got in much earlier in the game and the price has come down, its a great opportunity for others however at this time and i do buy on the dips.

  8. Here is the email response I sent regarding the above question of Decibel versus Khiron.  Obviously, I like Decibel and I think they are setting themselves up to be a solid player in the future.  As for Khiron, we do not have as much information on these guys at this time.  But, they will continue to grow.  And, I also think international is going to be far, far more important than many are paying attention to.  Those that are grabbing these international companies now are going to do very, very well over many years.  Khiron is getting there.  But, they are still in the process of getting there.  

    Here was my response:

    Thanks for reaching out to me via the forum.  You asked for a direct response so, I am replying.

    First, I think it is important to understand context with cannabis stocks.  They have been brutalized due to lack of interest. Because of the fact that they are still not federally legal, the remain OTC here in the states.  The keeps big players out of the game.  Without these bigger players, cannabis stocks have almost zero support and, short sellers just bully the stocks around.  

    Cannabis federal legalization is very like to occur sometime this year with the Democrat’s in office. That will bring in a lot of interest and, I fully expect cannabis stocks to surge from this.  Then, I expect them to fall right back down again.  If you are looking to play this, you could easily pick some of these stocks and hold them until they surge, get out, then get right back in when the fall an about 50%.  

    At that point, cannabis stocks will do a couple of things.  They will start to up-list to Nasdaq.  That is what we are really waiting for.  That means the bigger players will all get in and support these stocks long term.  

    In the meantime, we know a great deal now about DCBBF.  I like this stock.  I think they are going to do well over time.  But, Khiron, they are still ramping up so it is difficult to determine what the numbers will look like.  But, they are international and, that is going to be a huge market at some point.  More likely, these international companies may turn around and be far bigger than the US companies.  

    If there is a surge in cannabis stocks, both will do well.  You could easily profit from that move. Then, if we get more information from Khiron before that happens it would be easier to compare. For now, we don’t have enough of the future potential to know where Khiron will go.  But, they will be big.  Not sure how long that will take.

    Hope that helps.

    D.

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