April 13, 2020, 3:14 p.m. EDT

Is This the Safest Pot Stock to Buy Today?

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Neptune Wellness Solutions Inc. (NEPT)
  • X
    Neptune Wellness Solutions Inc. (NEPT)
  • X
    Horizons Marijuana Life Sciences Index ETF (HMMJ)

or Cancel Already have a watchlist? Log In

Apr 13, 2020 (Baystreet.ca via COMTEX) -- Shares of Neptune Wellness Solutions Inc /zigman2/quotes/203840062/delayed CA:NEPT -8.86% /zigman2/quotes/207537677/composite NEPT -8.82% skyrocketed more than 30% on Monday. The jump comes just days after the company announced the appointment of a new CFO, Dr. Toni Rinow, who previously worked in private healthcare organizations. The Wellness company also recently got the okay from the U.S. and Canada to sell plant-based hand sanitizer.

Cannabis is a growing part of the company's business but one of the advantages that Neptune has over a typical pot stock is that it has more diversification. In its most recent quarterly results, for the period ending Dec. 31, 2019, the bulk of its sales - 69% -- came from nutraceutical sales.

Cannabis revenue of $2.8 million was one-third of the company's sales. In the prior-year period, Neptune had no cannabis revenue contributing to its top line.

The extraction company can play a significant role in the cannabis 2.0 market in Canada but it can also fall back on its other nutritional products and supplements for growth as well.

The stock is a safer bet than most pot stocks and that's why it's not a surprise that while Neptune's shares are down 45% over the past year, they're still nowhere near the 70% decline that the Horizons Marijuana Life Sciences ETF /zigman2/quotes/208856346/delayed CA:HMMJ -4.94% has gone on during that time.

Neptune's stock currently trades right around its book value and at a forward price-to-earnings multiple of 13. Its recent surge in price has put the stock back to around the level it was in early March before the markets crashed as a result of the coronavirus pandemic.

For cannabis investors, Neptune's a safer alternative to invest in and could be a solid pick up today.

COMTEX_364481879/2559/2020-04-13T15:13:45

/zigman2/quotes/203840062/delayed
CA : Canada: Toronto
$ 2.88
-0.28 -8.86%
Volume: 485,764
Sept. 23, 2020 3:55p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$352.57 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/207537677/composite
US : U.S.: Nasdaq
$ 2.17
-0.21 -8.82%
Volume: 916,606
Sept. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$264.42 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/208856346/delayed
CA : Canada: Toronto
$ 5.87
-0.31 -4.94%
Volume: 136,798
Sept. 23, 2020 3:55p
loading...

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.