The concept of green industries offers an investment thesis that can include a wide range of promising stocks. Renewable energy is an obvious sector which has many interesting intersections with a new entry, that of cannabis. With a bit of creative thinking, one can discover stocks that are worth considering immediately or to monitor long term.
Here are some companies helping investors go green:
Aurora Cannabis
Aurora Cannabis, Inc. (ACB) was first listed on the Toronto Stock Exchange and later crosslisted to the NYSE. It is one of the powerhouse Canadian cannabis companies that took a hit recently in the aftermath of Canada’s legalization of recreational marijuana. It is also limited in moves in the U.S. due to listing on the TSX which forbids direct involvement due to the illegal nature of cannabis at the federal level in the States.
If that does not put one off, consider that Aurora is a significant long-term play and that the current price fluctuation may well be a buying opportunity. The company recently announced its newest cannabis production facility in Quebec. The high-tech operation is expected to produce as much as 4500 kilogram of niche varieties for premium markets. It will serve both medical marijuana patients and recreational or adult consumers. The facility takes advantage of exceptionally low energy costs in the region.
CleanSpark
CleanSpark, Inc. (CLSK) is listed on OTCMKTS and recently began to recover from a slowly falling stock price. CleanSpark offers microgrid solutions that combine energy sources, including solar and wind, in order to create a cost effective and resilient system of energy supply. Navigant Research ranked CleanSpark in a list of 10 top microgrid solutions and has described the company as positioned to emerge as a market leader in the coming decade.
Various issues have been raised in the past about CleanSpark’s filings but they seem to have provided solid responses to SEC concerns. CleanSpark has recently announced multiple deals with clients that included an $18 million-dollar agreement.
Enphase Energy
Enphase Energy, Inc (ENPH) trades on the NASDAQ and is also recovering from a bit of a slump. This renewable energy company provides home energy solution that include solar generation and energy storage solutions that can be monitored and controlled via the web. Their technology includes microinverters that convert DC from solar into AC that can be used in the home or exported to participating grids.
Their recent third quarter report revealed a cash balance of $116.2 million and a healthy revenue stream of $78 million. Investors are keeping a close eye on their progress.
Hexo Corp.
Hexo Corp. (HYYDF) is listed on OTCMKTS and is a vertically-integrated cannabis company. It had a huge price surge in September that held into October before dropping. However, the price remains above previous 2018 highs and should be watched to see if the new trading range stabilizes. For now it may actually be a buying opportunity.
Hexo has a special relationship with Quebec and manages distribution for the provinces’ online cannabis shop. They also have Quebec’s largest supply deal and additional deals in British Columbia and Ontario. A joint venture with Molson Coors will see them get into the beverage industry next year when edibles are legalized in Canada.
Seeking green
Of course, stretching the concept of green industries to include cannabis also means extending the metaphor to include cash. And future needs for energy and future markets for cannabis suggest that green industries will be cash producers. As usual, picking the best way to gather some of that green will depend on deeper research and consideration on the part of investors.