Despite the stock being up almost 400% in just seven months, investors will want to see if this momentum can continue. After all, even with a seemingly bright future ahead of it, many cannabis stocks have experienced huge peaks and crashes at the beginning of their life cycles.
The “cbd stocks to watch” is a company that has been rising in the cannabis industry. The company is looking to make use of their CBD-based products and will continue to rise until 2022.
In 2021, the Innovative Industrial Properties Stock will continue to lead.
The marijuana stock market isn’t exactly known for its consistency. At the very least, you’re unlikely to find consistency in terms of making significant increases week after week, month after month, and so on.
Innovative Industrial Properties Inc (NYSE:IIPR) is an anomaly in that the stock’s capacity to climb seems to be unwavering. Will the stock of Innovative Industrial Properties be able to maintain its gains in 2022?
My honest response is yes.
Dear Sir or Madam, For years, I’ve been a strong supporter of IIPR stock. Innovative Industrial Properties stock has soared 600 percent in the last three years (during which time I’ve been a staunch backer).
The 600 percent increase is astounding, especially given how steady Innovative Industrial Properties Inc’s gains have been.
Remember, we’re talking about the marijuana stock market, which is known for its high volatility. The industry’s attraction stems from its inherent volatility.
Marijuana stocks are notorious for achieving enormous gains in a short of weeks, if not days. However, the flipside of this volatility is that profits made readily may be lost just as swiftly. Even the most popular marijuana stocks have seen lengthy corrections.
The stock of IPPR, on the other hand, does not seem to follow the same pattern.
While there have been ups and downs, the stock of Innovative Industrial Properties never tends to take more than a month to recover from corrections, regardless of what is going on in the greater marijuana market.
Take a look at the stock chart for Innovative Industrial Properties Inc:
StockCharts.com provided the chart.
Despite the fact that other leading marijuana companies have taken huge losses in the last six months, IPPR stock has been trending in the other way.
In other words, the market dynamics that typically send other marijuana companies down don’t have the same effect on Innovative Industrial Properties shares.
That makes complete sense.
After all, IIPR stock isn’t your typical marijuana stock; it’s a marijuana real estate investment trust (REIT) with a business strategy that involves purchasing property around the United States and renting it out to marijuana growers.
This business strategy has proved to be incredibly successful, and it has provided Innovative Industrial Properties Inc with a variety of benefits that other marijuana firms in the United States do not have.
The fact that Innovative Industrial Properties’ stock is traded on the New York Stock Exchange should be noted first (NYSE). As a result, it is the only U.S. marijuana stock listed on one of the two main U.S. exchanges (the other being the Nasdaq).
This enables Innovative Industrial Properties Inc to attract large sums of money from both retail and institutional investors. In contrast, almost every other marijuana stock in the United States trades over the counter, limiting the amount of money that may be raised openly.
What’s the difference between trading on the New York Stock Exchange (NYSE) and the over-the-counter (OTC) market? Because the OTC market has a negative connotation in the views of many investors.
While it may not be fair, being listed on a major U.S. stock market gives investors the impression that a firm has been thoroughly scrutinized and is genuine. OTC stocks are seen to be riskier and less reliable.
Another significant advantage of IIPR stock is that it is just as much a real estate company as it is a marijuana company, and real estate is currently one of the fastest-growing and most stable investments available.
Doubters and doomsayers warn of impending real estate bubbles that may collapse at any time, and they may be correct, but central banks have been hesitant to allow real estate values to fall, as seen by their reaction to the 2008 financial crisis.
At the time, one of the federal government’s major initiatives was to stabilize the housing market by purchasing mortgages from failing banks and reselling them to private investors.
In 2008, investment businesses like Blackstone Inc (NYSE:BX), which was a private equity company at the time, were able to buy up large sections of the housing market for close to nothing, then either sell the homes to other private equity firms or rent them out, creating vast sums of money.
In other words, the real estate market is quite safe, which instills a high level of confidence in Innovative Industrial Properties stock.
Furthermore, Innovative Industrial Properties Inc is based on the concept that the marijuana industry in the United States is expanding and will continue to develop in the coming years.
That is very commonly accepted. While it’s unclear which marijuana stocks will be best positioned to profit from the market’s expansion, the fact that growth will occur is practically guaranteed.
As a result, rather than attempting to find a single marijuana company that would outperform all others, many investors are content to just invest in a REIT that will provide marijuana growers with the properties they need.
Expert Opinion
Similar to the ancient saying, “sell picks and shovels when there’s a gold rush,” Innovative Industrial Properties Inc has turned to selling farms amid a marijuana boom.
All of this combines to make IIPR stock one of the most exciting and stable marijuana stocks on the market, capable of continuing to increase without worry of a significant prolonged drop for years to come.
While there are many excellent marijuana investment choices, it’s difficult to deny that Innovative Industrial Properties Inc has been the most spectacular marijuana firm in recent years.
The greatest thing is that the stock’s winning run shows no indications of slowing down as the marijuana industry in the United States continues to grow at a fast pace.
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