NASDAQ and NYSE listed marijuana stocks are some of the most popular choices for investors. While smaller pot stocks to watch like Planet 13 Holdings Inc. (OTC:PLNHF) and Valens Corp. (OTC:VLNCF) are well known, they are not listed on large exchanges. Investors should note that just because a pot stock is listed on a big U.S. exchange, does not mean that it is guaranteed to show results. This is true for any investment, let alone marijuana stocks. Investors should always make sure that they are doing a few things to ensure a properly laid out portfolio.
For one, research is your best friend. By doing the proper research into any given marijuana stock, investors can find out key information about that company. This includes earnings, quarterly results, future expectations, and more. With this information, it can be much easier to judge where a company may be headed in the future. In addition, investors should have a thorough understanding of their portfolio.What Does This Mean For Marijuana Stocks
This means first, deciding what type of investor you are. On one hand, we have investors who use the swing trading method. This is valid for those who want to hold positions only for the short term. Swing trading can help investors to make large gains with only a small amount of capital invested. But, the downside of swing trading is that there is always the potential for large losses as well.
On the other hand, we have those who trade on long term positions. In an industry like cannabis, this can be tough for investors who have weak stomachs as prices can fluctuate greatly during daily trading. But, the future of the cannabis industry continues to look strong. This makes the case for long term investors quite strong. With these trading methods in mind, making a decision about a marijuana stock to watch can be easier than previously imagined.Marijuana Pharmaceutical Company to Watch: Corbus Pharmaceuticals Inc.
Corbus Pharmaceuticals Inc. (NASDAQ:CRBP) is a Phase 3 clinical-stage pharmaceutical pot stock working on developing several drugs that utilize cannabis. The company states that it is working on producing new substances that can treat different ailments such as inflammatory and fibrotic diseases. The drugs work by targeting the endocannabinoid system, which is where marijuana is processed in the body. Its main drug known as Lenabasum, is being used to treat different types of fibrosis in the body.
While this is not the only drug that the company produces, it is the most popular, and Corbus’ flagship pharmaceutical. Because it is a pharmaceutical company, the price of CRBP stock is closely correlated with the effects of COVID on world markets. It seems as though any pharmaceutical company has a correlation to COVID and news that comes out about the disease. Corbus Pharmaceuticals recently announced that it has received top-line results from the Phase 3 RESOLVE-1 study of lenabasum in use by those with diffuse cutaneous systemic sclerosis. Studies like this help to illustrate the efficacy of drugs when used to treat certain illnesses. While CRBP stock is quite volatile, it does remain a leading pot stock to watch.A Leading Cannabis Grower Pot Stock: Sundial Growers Inc.
Sundial Growers Inc. (NASDAQ:SNDL) is a producer of marijuana for the recreational and medical marijuana industries in several countries. The company states that it works through several brands including Top Lead, Sundial Cannabis, Palmetto, Grasslands, and more. Based out of Canada, SNDL stock has seen a great deal of momentum since the legalization of cannabis a few years ago. As a NASDAQ listed marijuana stock, SNDL stock has seen a great deal of attention over the past few years.
The company recently announced that it has completed an underwritten registered offering of around 26 million Series A Units. With this, it has been able to raise a considerable amount of funds which will go to overall growth in the company. Within the cannabis industry, capital is one of the most important factors to growth. Because growing and selling cannabis is such a capital intensive operation, raising funds is extremely important. With this offering, Sundial Growers should be able to push more growth throughout the near future, making it a pot stock to watch.
While there are plenty of marijuana stocks to watch, investors should remember the factors mentioned above. With that in mind, investors should be able to calculate what type of risk they are bringing into their portfolio. The reality is that the cannabis industry has a lot going for it. Many investors believe that the bulk of the industry potential is in the long term rather than in a short term period. For that reason, these marijuana stocks could be solid potential long term buys. But as always, investors should make sure to do their own research.