Investing in the Underdog
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The cannabis investing landscape has been fraught with challenges and while many investors thrived early on, many also suffered losses. So, you think it is an industry you should ignore? It may be time to think again.
The introduction of a new legalized cannabis market came with many ups and downs both for companies navigating the regulatory landscape, and for investors putting their hard earned dollars into them.
As with many other new industries, over time the cannabis industry is expected to settle in, level out, and could provide some very reasonable opportunities to invest.
While there are the big players to consider like Aurora, Canopy, and Tilray, it may be worth looking at some of the smaller niche companies or “underdogs” that have growing brand recognition, positive product reviews, and growing sales and revenue.
For example, C.A.R.P. recently partnered with a subsidiary of Heritage Cannabis, and provided the trusted C.A.R.P Recommended seal on their CB4 branded CBD medical products. After surveying the market carefully, C.A.R.P. found that Heritage’s professional evidence-based research approach in developing unique and highly effective CB4 medical products to be something they can support and recommend to their members.
According to Headset, a leading cannabis data & market intelligence solution with a focus on consumer insights, purchasing behavior & retail trends, Heritage Cannabis had sales growth of 29% over this past summer beating many of the top players in the market. The average growth rate of the top eight largest cannabis companies in Canada was only 8% during the same time-frame.
Heritage Cannabis is a perfect example of the smaller company or “underdog” in the market that is quietly gaining on the bigger players in the cannabis industry. And all of this has been achieved without selling products in the largest part of the market – cannabis flower which makes up 60% of cannabis sales in Canada. That is all changing with the launch of several news products that are expected to be available across the country early in 2022.
Heritage is also one of the first Canadian companies entering the legalized medical cannabis market in the United States through a partnership with an existing dispensary company. This partnership has formed a blueprint for Heritage to expand across the U.S. as the market evolves and legalization of cannabis becomes a reality.
With opportunity for growth across Canada and in the United States, Heritage seems well positioned and poised for further positive traction. As always, it is important that investors remember smaller companies can have higher risk so they should do their due diligence and consult an investment advisor before investing in any stock.
Heritage Cannabis is traded on the Canadian Securities Exchange under the symbol CANN. Find out more about Heritage at www.heritagecann.com.