Cronos Group (NASDAQ:CRON) and MariMed (NASDAQOTH:MRMD) accomplished something in 2018 that most marijuana stocks didn’t: They delivered positive returns. Both stocks crushed the performances of the top marijuana exchange-traded funds (ETFs).
MariMed was, by far, the bigger winner, with its stock skyrocketing 371% compared to Cronos Group’s 34% gain. But which of these two high-flying marijuana stocks is the better pick for investors now? …
The case for MariMed
MariMed focuses on the one marijuana market where Cronos Group can’t compete and retain its listing on the Nasdaq stock exchange — the U.S. The U.S. claims the biggest marijuana market in the world even though marijuana remains illegal at the federal level. MariMed ranked as the second-best-performing U.S.-based marijuana stock of 2018.
Until recently, MariMed wasn’t a marijuana grower itself. The company got its start providing advisory services to businesses in the U.S. cannabis industry. Now, however, MariMed is buying out some of its customers to jump headfirst into the industry.
MariMed hasn’t abandoned its advisory business, though. It even acquired BSC Group in October. BSC Group is a New Jersey-based company that offers licensing, consulting and operations management services to U.S. cannabis businesses.
While MariMed continues its growth in the U.S. marijuana market, there’s also a new huge market that the company is now entering. Passage of the 2018 farm bill in December legalized hemp in the U.S. This legislation defined hemp as cannabis that contains no more than 0.3% of psychoactive compound THC.
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