The coronavirus pandemic has triggered one of the biggest corrections in the equity markets in recent history. With the correction, so are a number of investment opportunities cropping up especially in the burgeoning Canadian cannabis industry that continues to experience an increase in sales. MediPharm Labs Corp (TSE: LABS), Constellation Brands, Inc. (NYSE: STZ), and Aphria Inc. (TSE: APHA) are some of the cannabis stocks worth watching as the COVID-19 pandemic continues to rattle the stock markets.
MediPharm Booming Core Business
MediPharm is an ideal pick for investors looking to gain exposure to the Canadian burgeoning #cannabis landscape amidst the Coronavirus epidemic. While the stock has pulled lower in recent weeks, the pullback presents an ideal entry position given the solid fundamentals affirming the company’s long term prospects.
For starters, $LABS is one of the few companies that has in the recent past, turned in a positive operating profit. The company looks set to maintain its operating profit, given its solid core business. By processing hemp and cannabis biomass on contract, the company has succeeded in working out volume and fee-based commitments.
In addition, the opening up of the edibles market in Canada has given rise to new opportunities that the company is pursuing. That said, #LABS is the go-to company for other players in the industry looking to process cannabis and hemp biomass for distillates resins as well as concentrates among other cannabinoids.
Cannabis derivatives offer much higher margins than dried cannabis leaving MediPharm positioned to generate significant revenues as demand for such products continues to grow.
Aphria Expansion Drive
Aphria is another must watch in the Canadian #cannabis industry even as the Coronavirus continues to rattle investors. The company has made a name for itself as a heavyweight in the cultivation, processing, and distribution of cannabis products.
Expansion into international markets is one of the reasons to remain bullish about $APHA long term prospects. The company has expanded its footprint into Germany as it continues to diversify its revenue streams. The fact that Germany’s medical cannabis opportunity is 6 times larger than that of Canada all but affirms the company’s long term prospects. The company is also flexing its muscles in South America where it is also pursuing opportunities for growth.
In addition, Aphria stands out on the fact that it boasts of relatively large cash position, which leaves it well-positioned to strengthen its market share through strategic initiatives further. Analysts at Bank of America have already #APHA to a
‘Buy’ on optimism that the company has what it takes to capture a higher proportion of increased cannabis demand on the global scene.
Constellation Canopy Growth Investment
Constellation fundamentals remain solid more than ever even on the coronavirus triggering a massive pullback from all-time highs. The pullback might as well have presented an exciting entry position as the company continues to strengthen its prospects in the North American cannabis industry.
In contrast to other #cannabis companies, $STZ is in a solid financial shape. That said, the company remains well-positioned to pursue strategic initiatives that have the potential to strengthen its competitive edge as well as growth metrics. Similarly, an investment in Canopy Growth Corp (TSE: WEED) has affirmed the company’s readiness to spend big in a bid to strengthen its long term prospects in the competitive industry.
