Low-Cost Pot Stocks To Consider, According To ETFMG Alternative Harvest's Jason Wilson
The cannabis sector continues to see fluctuations as investors and lawmakers consider state and federal legalization.
ETFMG Alternative Harvest ETF's (NYSE:MJ) cannabis banking and research expert Jason Wilson recently told Benzinga that everyone is trying to understand where the market is heading.
While still trying to figure out its course, Wilson says it is apparent that global growth opportunities and a well-positioned market will be part of the equation.
"The industry is growing, and it's going to grow no matter what," Wilson stated.
When exploring low-cost per share and/or low market cap companies in the space, he said that a couple of options pique his interest due to their positioning, partnerships and other potential beneficial maneuvers.
A Top Pick
Wilson highlighted two stocks in his ETF as specific options of interest. He stated that Village Farms International Inc (NASDAQ:VFF) is catching his eye most today.
Wilson likes the stock due to its reasonable market cap at just over $1 billion.
He also noted the company's vegetable cultivation history as a critical factor. "I know on its face that sounds odd, but they do understand how to grow product–they understand distribution," he said.
The company's millions of acres in growing capacity also earned his interest, noting that Village Farms has invested in North America, Europe and Australia.
Wilson noted that he was a fan of its balance sheets and management team as well.
He expects the stock to see a continuous, slow and steady growth outsized to the general market.
Speculation Persists, But Hexo Could Provide Gains
Wilson also highlighted Hexo Corp (NYSE:HEXO) as an option, calling the pick a bit more speculative. He believes that the company has learned from past mistakes involving M&A and production.
"They've weathered the storm," said Wilson, citing the company's operational changes.
He also highlighted vital partnerships with Molson Coors Beverage Co Class B (NYSE:TAP) to sell THC-infused drinks in Canada and the U.S.
In addition to learning from its past errors, Wilson expects Hexo to learn from Molson. He believes the partnership should help Hexo operate in the legal Canadian space, then expand its footprint through global distribution.
Wilson said competition in the beverage space would likely be plentiful. However, he believes the Molson Coors partnership could help Hexo scale and gain in the short-term.
Wilson also cautions that the full regulatory roadmap is still unknown, adding: "There could be tremendous upside for them in the shorter-term, but everything is subject to lots of volatility."
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