Aurora Cannabis (TSX:ACB)(NYSE:ACB) stock has been getting a lot of attention lately from investors worried about the high market price of Canopy Growth.
Cutting-edge investors realize that growth is in burgeoning markets like marijuana and cloud computing. Unfortunately, these scenes also attract undue speculation and day trading. Luckily, your TFSA or RRSP can benefit from this volatility.
Speculative trading in cannabis stocks has resulted in a mix of overpriced and underpriced assets. Smart investors will want to identify underpriced cannabis stocks and invest. When the market likely corrects itself in the next two years, the capital gains will result in an enjoyable nest egg.
The top three cannabis investments under $10 per share are Aphria (TSX:APHA)(NYSE:APHA), The Green Organic Dutchman (TSX:TGOD), and HEXO (TSX:HEXO)(NYSE:HEXO).
Aphria is an international producer and distributor of medical cannabis with global retail locations and an internet sales platform. On Thursday, Aphria excited investors on both the Toronto Stock Exchange and the New York Stock Exchange with better-than-expected earnings of $0.05 per share.
The company also announced a new, hip retail outlet opening in Kingstown Jamaica across from a museum dedicated to the late Reggae musician, Peter Tosh. Aphria’s subsidiary, Marigold, will open the retail location at its existing cannabis farm along with a smoking lounge.
The retail outlet may well become a tourist location with onsite tours of the 5-acre legal marijuana farm.
The Green Organic Dutchman
Incorporated in 2016, the Green Organic Dutchman is a Canadian CBD research and development firm specializing in organic dried cannabis, cannabis oils, edibles, and seeds. The company is safely and legally licensed throughout Canada until 2022.
The Dutchman has been forming new partnerships and releasing provocative statements this year. Last month, the company created waves on the Toronto Stock Exchange when it announced an international strategic hemp division.
Moreover, in June, the company signed a multi-year partnership with Neptune Wellness.
Neptune Wellness has agreed to employ the Dutchman as its exclusive packager of organic marijuana in Canada.
HEXO is a top cannabis cultivator and distributor in Canada. The company sells dried cannabis and cannabidiol liquid.
The company’s top products include Time of Day, H2, Elixir, and Decarb. Investors may better recognize the company by its prior name, Hydropothecary Corporation.
HEXO has won awards for its cannabis products. Even more notably, its Elixir oral spray is available online and throughout 200 private retail stores in Alberta.
The spray is an innovate micro-dosing product — designed for discretion. Consumers can use this marijuana product in public without attracting unwanted attention.
Investors interested in profiting off high growth markets do not need to pay high prices for shares. The volatility in the cannabis industry right now is distorting valuations. The enormous demand for marijuana will create multiple winners in the cannabis race.
Aphria, the Green Organic Dutchman, and HEXO shareholders will all look at the value of their shares ten years from now and see substantial returns. Now is the time for TFSA and RRSP investors to look for long-term buy and hold opportunities in the cannabis industry.
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Fool contributor Debra Ray has no position in any of the stocks mentioned.
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