Will Marijuana Stocks Be Impacted By Inflation?

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Are Marijuana Stock Investors Worried About Inflation?

As trading in May continues for marijuana stocks momentum is still dropping in the sector. Due to many factors, the entire stock market has dropped. Some of these contributing factors could be from issues in other sectors. Also more recently the fear of inflation as well as some states running out of gas. This has also contributed to a drop in the market. It seems like the atmosphere of trading cannabis stocks is to buy the dip and hold your position.

However, for some shareholders, the fear of uncertainty has led them to sell pieces of their MJ stock portfolio in an attempt to recoup any current losses. Yet, while some shareholders sell off shares it also drives the price of marijuana stocks down even more. Which causes investors to come back and buy those same shares at a lower price. Beyond just marijuana stocks the cannabis industry is still moving full steam ahead.

Meaning between more states going legal, the fight for federal cannabis reform, the future of the sector is looking good. Much of what’s next to come for the cannabis industry especially in the U.S. will be focused mainly on legislation. In addition to ending cannabis prohibition, the growth and progress of certain cannabis companies have also made a path towards future innovation for the cannabis industry.

Cannabis Industry And Market Info

Right now for those who are looking to find the best marijuana stocks to buy still have time to do so. Currently, it appears that the strategy is to be patient and wait for a selling opportunity that will make some kind of a return. However, some analysts feel better trading is soon to come for many marijuana stocks. The marijuana stocks mentioned in this article are a few examples of cannabis companies that may soon see a turnaround in the market.

Marijuana Stocks To Watch This Month

  1. Village Farms International, Inc. (NASDAQ:VFF)
  2. Innovative Industrial Properties, Inc. (NYSE:IIPR)

Village Farms International, Inc.

Village Farms International, Inc. is known as one of the biggest and longest-running greenhouse cultivators in North America. Its subsidiary Pure Sunfarms is currently one of the single largest cannabis operations in the world. The company is one of the most cost-efficient greenhouse producers. In addition to being one of the most-sold brands in Canada.
In recent news, the company has released its first-quarter 2021 financial results. During this time Pure Sunfarms achieved its 3rd consecutive quarter of sequential growth. This growth counted for 20% for retail branded marijuana sales.


“The first quarter of 2021 was yet another strong quarter for Pure Sunfarms, which delivered its third consecutive quarter of strong sequential growth in our priority sales channel, Retail Branded Sales – up 20% from the fourth quarter – and is especially encouraging given the softness in the Canadian market due to pandemic restrictions, which stalled sales growth for the rest of the industry,” said Michael DeGiglio, CEO, Village Farms. “Our continuing strong momentum was again driven by Pure Sunfarms’ leading market share performance in dried flower1, which remains by far the largest product category, with our brand success firmly rooted in our reputation for premium quality products at an everyday price.

Yet even with a solid earnings report for Q1 in 2021, it has not yet resonated well with how VFF stock has performed. Currently VFF stock is still dropping in the market. But as more progress takes a hold of the sector hopefully this will bring with it some much-needed momentum.

Innovative Industrial Properties, Inc.

Innovative Industrial Properties, Inc. is one of the leading cannabis real estate companies in the sector. This past week the company released news regarding its Q1 2021 results. Some highlights to point out are the company made total revenue of approximately $42.9 million in the quarter. This represents a 103% increase from the first-quarter earnings of 2020.

As well the company paid a quarterly dividend of $1.32 per share on April 15, 2021, to common stockholders of record as of March 31, 2021. This made for a 32% increase over the first quarter of 2020’s dividend. As far as the company’s balance sheet from March 31st, 2021 approximately $122.1 million in cash and cash equivalents.


This is in addition to approximately $539.3 million in short-term investments, totaling approximately $661.4 million. Furthermore, during Q1 the company also made four acquisitions for properties located in California, Florida, Michigan, and Texas. As well as executing three lease amendments to provide additional tenant improvements. These improvements are for properties located in Michigan, New York, and Pennsylvania.

However IIPR stock from May 5th to the 7th started to look like it was sustaining better trading but eventually fell shortly after. With how marijuana stocks have performed over the last few months shareholders are growing with the concern of when consistent upward trading will take place.

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