I Still Have Faith in OrganiGram!
Before you conclude that marijuana stocks are unprofitable investments this year, let me tell you why I think OrganiGram (NASDAQ: OGI) is a good pick for 2020.
Who wants to look at the smaller cannabis companies when everyone is eyeing what the bigger players -- think Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) -- are up to? For instance, Canopy Growth's partnership with Constellation Brands and its attempt to develop CBD-based beverages has attracted attention. Meanwhile, Aurora Cannabis -- which became investors' favorite in 2019 when it ramped up production -- has plummeted this year with rising debt, dire financial results, and leadership changes.
OrganiGram is certainly a smaller company by market capitalization; as of April 29, its market cap is just $278.3 million, compared with Canopy Growth's $5.9 billion. However, OrganiGram's consistent revenue growth and management's confidence in the eventual profitability of its cannabis 2.0 product portfolio are what give me continued faith in the company. Meanwhile, peers are seeing falling revenue and negative profitability.
Source Fool.com
