The #1 Stock To Invest In Cannabis Edibles

Cannabis edibles are expected to be one of the fastest growing cannabis subsectors in the next four years.

According to a recent report by leading cannabis research firm Arcview Market Research, spending on edibles in the US topped $1 billion in 2018.

With Canada set to legalize edibles this year and more US states legalizing medical and recreational cannabis, the cannabis edibles market is set to explode in the next four years. Arcview estimates annual sales of edibles in the US and Canada could hit $4.1 billion by 2022.

Arcview CEO’s, Troy Dayton, said, “Established big-brand food and beverage companies are beginning to take notice of the cannabis edibles market and this is likely just the tip of the iceberg. As the edibles business grows and regulatory fears ease, the pace of intra-industry mergers and outside acquisitions will increase as well.”

It is obvious that this market is set to explode higher in the next few years. This is creating another great investment opportunity.

Cannabis Edibles

Today, I am going to reveal a promising young, US cannabis company that is in position to capitalize on the pending boom.

  • This little-known cannabis company is an early industry leader in edibles and has been in business for almost ten years.
  • Has one of the best edibles portfolios in the industry.
  • Sales have been surging in the last two years.

Dixie Brands (DIXI,DXBRF) is a US-based cannabis company that is an early leader in the high-growth US cannabis edibles market.

Shares just began trading on the Canadian Securities Exchange in early December under the ticker symbol DIXI. I see average daily trading volume of 242,000 so this ticker is plenty liquid.

Shares also trade in the US on the OTC markets under the ticker symbol DXBRF. This ticker is less liquid with average daily trading volume of around 60,000 shares. However, that should still be plenty liquid for most investors.

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Dixie has a market value of $65 million – that makes this a smaller cannabis stock and a fraction of the size of industry leader Canopy with a $10 billion market cap. These smaller cannabis stocks have solid growth potential but they are more vulnerable to short-term volatility and even share price manipulation.

These are the Four Reasons I am Bullish on Dixie Brands

#1 – Dixie is a pure play on the high-growth US edibles market.

#2 – Dixie has one of the best product portfolios in the entire US cannabis industry.

Cannabis Edibles

These products are professional, well branded, and are sold in almost 500 stores in California, Nevada, Arizona, Colorado, and Maryland.

#3 – Dixie’s industry-leading product portfolio is driving impressive revenue growth.

Dixie delivered enormous revenue growth in its third-quarter results from early December. Here are a few highlights directly from the press release.

  • Revenue was $2,435,000 in the third quarter of 2018, an increase of 110% from $1,162,000 of revenue in Q3 2017.
  • Year-to-date, revenue was $4,205,000 in 2018, up 60% from $2,630,000 in the first nine months of 2017. Growth has been driven by increased sales of Dixie’s THC-infused products in Colorado, Maryland, and Nevada, as well as the Company’s CBD products.
  • Gross profit of $1,038,000 in Q3 2018 was up 102% from $514,000 a year earlier, while year-to-date gross profit of $1,936,000 was up 57% over 2017.

Dixie Brands Inc. Announces Third Quarter 2018 Financial Results

#4 – Dixie looks like a great buyout target. I would not be the least bit surprised to see Dixie bought by a larger cannabis or consumer products company looking to expand into cannabis or edibles.

Dixie is up 50% in the Last Month and Looking to Challenge the 52-Week High

Cannabis Edibles

Dixie has been rallying for the last month. Shares are up almost 50% and back within striking distance of the 52-week high.

The Big Picture

The North America cannabis edibles market is set to explode in the next four years. Dixie Brands is an early leader in position to capitalize. Dixie is an early industry leader with one of the best product portfolios.

Enjoy,

Michael Vodicka
Editor, Cannabis Stock Trades

The information contained in this post is for informational and educational purposes only. The trading ideas and stock selections represented on the Cannabis Stock Trades website are not tailored to your individual investment needs. Readers and members are advised to consult with their financial advisor before entering into any trade. Cannabis stocks carry a certain level of risk and we accept no responsibility for any potential losses. All trades, patterns, charts, systems, etc. discussed are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher.

One thought on “The #1 Stock To Invest In Cannabis Edibles

  1. I am totally new at this (kindergarten level) and would like to enter this market. Could someone let me know where and how to start - what broker to contact which charges the lowest fees - or can I contact the companies directly? Would like to get into a couple of different markets - one edibles and one Aurora, etc. Any advice on which stocks to choose would also be greatly appreciated. Thank you for any help or information you could give me.

    Judith Wall

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