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Summary
- Village Farms’ stock gained 110 per cent in one year and has a current market cap of C$ 1.17 billion.
- Supreme Cannabis is trading actively with an average volume of 6 million for the last 10 days. Its scrips are up 17 per cent year-to-date (YTD).
- Both pot companies reported healthy revenue growth in their three months ended on September 30, 2020.
The Canadian cannabis industry has recovered from the COVID-19 led slump and delivered 16 per cent returns in the last one year. The S&P/TSX Cannabis Index has surged by 44.67 per cent this year as Joe Biden, the new US president entered the White House.
Cannabis stocks are one of the hottest picks for investors in 2021. Once called a bubble industry, now it has been observing an unprecedented demand as giant marijuana consumer nations Mexico and the US are set to decriminalize it federally.
Let us look at two growing pot stocks of this year:
Village Farms International Inc. (TSX:VFF)
Current Stock Price: C$ 15.10
This cannabis company exports its packaged goods to the US market. Its stock has delivered a one-year return of 110 per cent. Shares of the farms holding are up 16 per cent year-to-date (YTD).
Its market cap is C$1.17 billion, with a current price-to-cashflow ratio of 64.20. Its last 30-day trading average volume is 1.02 billion.
On January 20, the company completed its direct sale of 10.887 million common shares at C$ 15.70 per stock, to raise nearly C$ 171 million including brokerage expenses.
Village Farms reported produce sales of US$ 43 million in the third quarter, ended on September 30, 2020, a 12 per cent rise against US$ 38.3 million in Q3 2019.
The company released its first Cannabis 2.0 goods in September 2020, which included first bottled oil products and Full Spectrum Vapes.
Image Source: Kalkine Group @2021
Supreme Cannabis Company Inc. (TSX:FIRE)
Current Stock Price: C$ 0.175
The Toronto-based pot firm produces and retails recreational and medical cannabis. Its stock trading volume soared to 21.65 million shares on Friday, January 29. The volume rush came as the company raised around C$ 23 million through its overnight marketed public offering last week.
Stocks of the marijuana producer have regained momentum this year, with a surge of nearly 17 per cent. Its price-to-cashflow ratio has reached 263, with a 10-day stock trading volume of approximately 6 million.
In the first quarter of fiscal 2021, ended on September 30, 2020, it recorded a 24 per cent net revenue surge quarter-over-quarter (QoQ). Its revenue from the recreational segment was C$ 7.5 million, up 3 per cent QoQ. Its medical division generated revenue of C$ 4.4 per cent, a jump of 92 per cent QoQ, led by the higher selling price.
