two U.S. Marijuana Stocks to Acquire and 1 to Prevent — The Motley Fool


If you had been one particular of the fortunate investors to get in on the ground floor of the cannabis sector, you are potentially sitting on a quadruple-digit acquire ideal now. But make no error about it: We’re nevertheless in the early innings of what could be a lengthy-term development story.

According to numerous Wall Street estimates, the legal pot sector could see sales catapult from about $11 billion in 2018 to as higher as $200 billion in a decade. Even even though development estimates differ, one particular variable that remains continuous is that the United States is anticipated to be the industry’s most profitable industry.

Investment bank Stifel, which is accountable for the most aggressive development forecast on Wall Street, believes the U.S. could be producing $100 billion in annual sales a decade from now. That tends to make the U.S. marijuana sector a potentially intriguing investment chance. Maintaining in thoughts that the sector is far from mature and there are a lot of dangers inherent with investing in an sector nevertheless labeled as illegal by the federal government, right here are two U.S. marijuana stocks to contemplate getting, as nicely as one particular you’d be very best off avoiding.

Image supply: Getty Photos.

Acquire: Planet 13 Holdings

Shop count is not necessarily an indication of accomplishment in the U.S. cannabis landscape. Just ask vertically integrated dispensary operator Planet 13 Holdings (OTC:PLNHF). Whereas rivals like Acreage Holdings and Curaleaf Holdings have about 90 and 130 respective retail retailer licenses on a pro forma basis, Planet 13 only lately announced its intention to open a second place.

Nonetheless, Planet 13 is aiming to create a culture that other dispensary providers just can not bring to the table. Its SuperStore off the Strip in Las Vegas, Nevada will span 112,000 square feet when it is totally constructed out. (For reference, this is a tiny larger than the typical Walmart.) Planet 13’s retailer will have a pizzeria, coffee shop, events center, and a customer-facing processing center, creating it anything of a go-to location for nearby cannabis enthusiasts and vacationers.

As a person who’s visited the SuperStore, I can inform you Planet 13 has accomplished a terrific job of incorporating technologies to boost the customer expertise. Its layout is also somewhat flawless, with larger-margin derivative goods placed closest to the doors and registers. Primarily based on Planet 13’s June visitors information, the quantity of guests it is seeing in its SuperStore per day has practically doubled…

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