AUS
NZ
UK
CA
USA
IND
Source: TayHamPhotography, Shutterstock
Ever since the legalization of recreational cannabis in Canada, growth in the cannabis industry has been significant and it has given ample investment opportunities to investors.
According to a study by market research firm Grand View Research, the global cannabis market is estimated to reach US$ 146.4 billion in the next five years.
In Canada, the cannabis sector contributes C$ 14.6 billion to the economy, according to a Statistics Canada report, thus making it an important sector.
During the peak pandemic period, the stock prices soared after which a downtrend was witnessed. In early March this year, there was a sharp pullback in cannabis stocks and this could be an excellent buying opportunity for the investors.
Notably, Mexico is all set to create the world's largest legal cannabis market and speculations are rife that US President Joe Biden may also embrace weed this year. This move is expected to boost cannabis stocks in the coming days. In this article, we will look at the top two junior cannabis stocks, trading on the Toronto Stock Exchange Venture (TSXV), that might interest you:
High Tide Inc. (TSXV:HITI)
An Alberta-based cannabis company, High Tide is engaged in manufacturing and distributing cannabis lifestyle products and accessories used for smoking. It also has many subsidiaries, some of them are Smoker's Corner Ltd., Famous Brandz Inc., and Canna Cabana Inc.
©Kalkine Group 2021
Notably, the company stock has outperformed the index. In the last three months it grew up by 234 per cent, and 201 per cent year-to-date (YTD).
High Tide’s market cap is over C$ 487 million and it holds a P/B ratio of 38.50. On March 1, the company released year-end financial results and declared that its revenue for the year was C$ 83.3 million, up by 166 per cent from the comparative period in the prior year.
The gross profit for the year was C$ 30.8 million, up by 172 per cent year-over-year.
Pharmacielo Ltd. (TSXV:PCLO)
Headquartered in Canada, Pharmacielo has a presence in countries like Italy, Mexico and Colombia. The company is involved in the processing and supplying of medicinal cannabis extracts. The company's major revenue source is from Colombia where it sells a variety of Cannabis products.
Pharmacielo is a top-performing stock on the TSXV and it soared 278 per cent in one year. The scrips have returned over 11 per cent YTD. It has a market cap of C$ 320 million and it holds a P/B ratio of 8.56.
Its net loss narrowed to C$ 6.1 million in Q3 2020 (quarter ended September 30, 2020), from 7.7 million in the quarter before. However, the net loss grew from C$ 3.8 million in Q3 2019.
