The marijuana industry composite, the AdvisorShares Pure U.S. Cannabis ETF, is down by more than 50% this year so far. Cannabis stock investors are on the lookout for better times, not to mention the next big stock to invest in. Given that marijuana legalization is far from guaranteed in the near term, investing in the largest and most profitable pure-play companies might not be the most successful strategy.
With marijuana regulations on the ballot, major players in the industry making big changes to their strategies, and many companies struggling to grow their sales, there's a whirlpool containing both danger and opportunity for investors. Since its announcement in late October that it would enter the U.S. cannabis market faster than previously planned, Canopy Growth's (NASDAQ: CGC) shares are up by around 45%, and there might be more to come. The cannabis cultivator's pivot to focus on the U.S. comes at a time when it's selling off its Canadian retail outlets, meaning that the Canopy Growth of 2023 and beyond will look little like what investors are accustomed to.
Recently, Zacks.com users have been paying close attention to Innovative Industrial Properties (IIPR). This makes it worthwhile to examine what the stock has in store.