Pot stocks have blazed higher from their 52-week lows in March. The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) has sprung 71% higher from its trough on March 16. And major licensed Canadian producers, as well as large U.S. multistate operators (MSOs), have gained 60% or more since then. But for the most part, despite these face-ripping rallies over the last few months, pot stocks are underperforming the broader indexes by significant margins year to date. Still, there's one group of cannabis stocks shining bright. Its members are flying under the radar, bucking the trend. However, that's not the only reason they deserve a spot in every pot stock investor's portfolio. The New "Green Rush"We have a "green rush" spreading across this country. More than half of Americans currently live in a state where marijuana is legal in some form. There are 11 states that have legalized adult-use cannabis. And 33 states, as well as the District of Columbia, have greenlit medical marijuana sales... That's a sizable opportunity. Of course, this is an election year, so there's potential for the number of U.S. markets to grow. Especially when confronted with the herculean effort of keeping the economy upright in the wake of the global pandemic. Over the last several years, we've watched the legal cannabis industry be born and quickly learn to run. Now, most of the attention is given to cannabis producers, both here in the U.S. and in Canada (where cannabis is legal nationwide). And early investors in these stocks minted millions. But shares of these companies have been extremely volatile. Investors often overlook the less risky, ancillary players helping to get those in-demand products from the grow house to the dispensary and then to the consumer. These aren't Canadian licensed producers or American MSOs. But it's a profitable set of companies every cannabis investor must know about. This group provides the necessary components, packaging, greenhouse space, lights and even soil for plant-touching businesses to survive and thrive. And in 2020, these stocks have emerged as the cream of the crop. |
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