The Vape Crisis Continues to Blow Over as More Details Emerge
These Vape Related Marijuana Stocks Could Offer Investors Decent Upside as the Market Recalibrates
We’ve all read or heard the unfortunate stories from the United States involving multiple deaths and many more serious illnesses due to tainted illegal back market vapes. As a result of the media frenzy surrounding the issue, many vaping related pot stocks have been hammered over the past month or so.
Investors may want to take a deeper look at these stocks to determine if the vape crisis has created a bargain shopping buying opportunity.
Ancillary Vape Plays
KushCo Holdings (OTCQX: KSHB) provides over 5,000 legal cannabis businesses with industry compliant packaging and branding solutions. A large portion of the company’s business revolves around vaporizer devices and the recent vape scare has sent KSHB’s share price plummeting.
KushCo recently released a new investor deck focused solely on the vaping issue. The presentation titled ‘KushCo’s View on Vaping’ does a great job in providing the public with real facts. This was a smart idea considering all the fake news and misinformation being spread throughout the media.
Here are a couple of direct quotes from the presentation:
“NY State officials and the FDA believe these illnesses are being caused by chemical additives that were recently introduced into the market.”
“We believe the vast majority of these cases are linked to untested vape devices purchased from illegal markets or street dealers.”
Share of KSHB has declined over 52% in the last month amid the vape crisis. Investors looking to play the vape rebound may want to consider KSHB as an opportunity. KSHB is trading flat today with shares currently changing hands at $1.75.
Greenlane Holdings (NASDAQ: GNLN) is a large global player in the vape scene. The company operates a powerful house of brands that include products such as premium CBD, liquid nicotine and cannabis accessories. Greenlane taps into its large consumer base through its 11,000 retail locations which include vape shops and licensed dispensaries.
GNLN’s stock has dropped over 42% over the past month with shares currently trading at $3.59. The stock is up 3.46% today as the sector continues its recovery.
Vape Stocks that Touch the Plant
1933 Industries (CSE: TGIF) (OTCQX: TGIFF) is a licensed cannabis grower, extractor, processor and manufacturer of cannabis products with operations in the United States and Canada. TGIF boasts a large proprietary portfolio of well-known brands which include AMA concentrates and Canna Hemp X.
TGIF recently made a public statement to reassure its consumer base that none of the company’s branded THC and CBD products contain vitamin E acetate or other additives such as vegetable glycerin and propylene glycol. TGIF confirmed that all of its cannabis products are third-party lab tested.
TGIF’s stock has held up much better than most during this tough time for the sector. Shares of TGIF have lost nearly 14% over the past 30 days. Shares of TGIF are currently trading at $0.31, up 1.64% today.
Slang Worldwide (CSE: SLNG) (OTCPK: SLGWF), the company Bruce Linton recently announced he invested, generates roughly half of its revenue from vaping related sales. The company owns a portfolio of cannabis brands that are distributed in 12 U.S. states through a total of 2,600 stores.
Slang also made a statement addressing the recent vape developments:
“The widely publicized public health issue relating to the use of liquid vapes is something that SLANG takes extremely seriously. We encourage investigation and research into the causes of this issue and hope that our collective understanding of the results leads to more thorough and effective regulation of the industry,” – SLANG CEO Peter Miller.
None of Slang’s products were identified as tainted because the company doesn’t cut corners and use toxic cutting agents like some crooks in the illegal black market.
Shares of SLNG are down over 46% since the start of September. The stock is currently trading at $0.56, even on the day.
MediPharm Labs (TSX: LABS) (OTCQX: MEDIF) is a producer of purified, pharmaceutical-grade cannabis oil and concentrates. MediPharm shares dropped as much as 38% during the past month but has since rallied and is currently only down 16% for the month. LABS stock is trading up 1.72% today at $4.20 per share. LABS is a top extractor and should be looked at as a leading indicator of the space, similar to how Canopy Growth (TSX: WEED) (NYSE: CGC) and Aurora Cannabis (TSX: ACB) (NYSE: ACB) tend to lead the overall cannabis sector.
HALO Labs (NEO: HALO) (OTCQX: AGEEF) is another notable company that develops and manufactures quality cannabis oils and concentrates. Halo has produced over 4.5 million grams of cannabis oils and concentrates in the company’s history. HALO shares lost 35% of its value since September 3rd and are currently trading at an attractive $0.265 per share, up 1.92% today.
Valens GroWorks (TSXV: VGW) (OTCQX: VGWCF) could see demand for its lab testing of cannabis extracts and oils soar as companies scramble to prove their products are above board. Valens is the largest third-party extraction company in Canada as well as a licensed accredited cannabis testing lab. At the hight of the vape crisis, VGW stock was down over 20% but has since rebounded sharply and is currently trading at $3.31, up 2.48% on the day.
“If regulatory focus and crackdowns center on the illicit market, there is a real argument to be made that legal-market companies stand to benefit from this crisis as consumers look to trusted and tested sources for their preferred products,” said MarketWatch.
To date, no licensed cannabis company has been implicated in any way to the vape crisis. Most of the people impacted negatively by cannabis vapes admitted to using illegal back market products. The quicker the truth prevails, the quicker the share prices of these companies will recover.
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