Want to Cash in on the Marijuana Boom? My Top Cannabis Stock to Buy in June

The Motley Fool, by Matt Smith, June 23, 2019

Cannabis stocks have come off the boil since the start of 2019 and there appears to be little life left in the sector as fears of a trade war and a weaker global economy weigh on the outlook for consumer products. This is being exacerbated by growing fears that marijuana stocks are in a bubble and many are heavily overvalued.

While Canadian industry leaders such as Canopy Growth and Aurora Cannabis have soared by around 58% and 45%, respectively since the start of 2019, many smaller plays have failed to make the same gains. Leading Colombian cannabis cultivator PharmaCielo (TSXV:PCLO) has made nowhere near those gains, rising by just 26% over that period and losing 4% over the last year, creating an opportunity for risk-tolerant investors seeking speculative exposure to the global cannabis industry.

Leading South American cultivator

PharmaCielo is the industry-leading legal marijuana cultivator in Colombia, giving it a first mover advantage in a country that could easily become the Saudi Arabia of cannabis. The equatorial nation’s unique geography, geology and climate has long viewed it as a rich source of agricultural products including fruits and cut flowers.

PharmaCielo recently announced that it would acquire Australian listed medicinal marijuana company Creso Pharma (ASX:CPH) for approximately $111 million in an all-stock deal. Creso owns licenced cannabis cultivation facilities in Canada, where it harvested its first marijuana crop in late May and is developing additional cultivation assets in Colombia and Israel. It is focused on the production of marijuana edibles, topicals and other extract-based products with distribution agreements in the U.K., Switzerland and Australia. …

PharmaCielo has 15 million square feet of available cultivation capacity in Colombia. … Once they are fully online, those facilities along with the additional Creso assets will give PharmaCielo’s earnings a solid boost, which in turn will give its stock a healthy lift.

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