VREOF Stock Could Be the Next Big Thing in the Pot Sector
Marijuana Penny Stock Winning Big in the Medical Sector
The legal cannabis industry is, at any given time, usually full of high-potential penny stocks poised to make major breakthroughs in the coming months and years.
Some marijuana penny stocks, however, have higher potential than others or have something that sets them apart from the pack.
Enter Vireo Health International Inc (OTCMKTS:VREOF, CNSX:VREO). Shares of this medical marijuana company had a strong November, and I anticipate that VREOF stock will continue to climb well into 2020.
While not as sexy as the recreational weed market, the medical marijuana market continues to make steady gains around the world.
Medical cannabis is legal in 33 U.S. states, D.C., and several U.S. territories. Recreational marijuana is currently limited to only 11 U.S. states and D.C.
Medical marijuana companies operating in the U.S., therefore, are well positioned to see massive gains in the near future.
So the stage is set for Vireo stock to benefit from the maturing U.S. medical cannabis market; the company is better suited than most to capitalize on this sector.
VREOF Stock Impresses in November
Vireo stock saw strong gains in November, jumping about 15% that month.
At one point, as can be seen in the below chart, Vireo shares climbed by nearly 40% on the month as many other marijuana penny stocks also made strong runs.
Chart courtesy of StockCharts.com
I anticipate that many more of these strong months are ahead for VREOF stock due to two main factors: strong fundamentals and good leadership.
The reason, after all, that Vireo first hit my (and many others’) radar was the company’s addition of Bruce Linton to the company as executive chairman.
Linton, you may remember, was the CEO and co-founder of Canopy Growth Corp (NYSE:CGC), leading that company to market dominance.
News of his arrival at Vireo Health International Inc sent Vireo stock soaring and otherwise catapulted the company from relative obscurity into instant notoriety.
“This is a science-backed marijuana company that met my criteria for best practices and a valid methodology,” said Linton when he joined Vireo. (Source: “Ex-Canopy CEO Bruce Linton joins U.S. cannabis company Vireo Health,” MarketWatch, November 11, 2019.)
“This struck me as a company doing a lot of good work that nobody knows about.”
VREOF stock is also benefiting from the company having shown strong financial numbers in its most recent quarterly report. Vireo’s total revenue for Q3 2019 jumped 60% to $8.0 million year-over-year. (Source: “Vireo Health Announces Third Quarter 2019 Financial Results,” Cision, November 27, 2019.)
That sizable leap means Vireo stock was well on its way toward stock-price growth even before Linton joined. Now with the company’s increased clout, the stock’s ceiling has been raised that much higher.
Linton’s arrival, combined with Vireo Health International Inc’s already-strong financial growth, means that VREOF stock could be in for massive gains in 2020, potentially doubling or even tripling.
What the company needs to do next is reduce its losses as it continues to spread to new markets across the United States.
If management can reduce those losses while maintaining profit growth, then many investors will see Vireo as a marijuana penny stock on the rise. They could end up heading to VREOF in droves, sending its share price soaring.
Vireo stock is an up-and-coming marijuana penny stock that investors need to keep an eye on.
Between the strong leadership in Bruce Linton and the solid numbers in Vireo Health International Inc’s latest quarterly report, VREOF stock is in a prime position to see big gains in 2020.