#7 - Innovative Industrial Properties (NYSE:IIPR)
Innovative Industrial Properties (NYSE: IIPR) - As demand grows for marijuana, companies will need places to grow the plant which has been known to grow … like a weed. That’s where Innovative Industrial Properties offers an advantage to investors looking for a different way to play the growing marijuana market. They offer cannabis companies an existing infrastructure in the form of climate-controlled greenhouses which provide more optimal growing conditions than marijuana that will be grown in the field. In fact, they are already providing their services for the medical marijuana industry. Since these facilities are already built, they have a leg up on the competition that will have to play catch up to capture the retail marijuana dollar. Another advantage IIPR has is that they have a presence in a number of states, which is a scale advantage over smaller players. Finally, the company is already profitable which means they are well positioned to deal with whatever regulations will be placed on the growing and cultivating of marijuana.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.
- Current Price
- $73.35
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $104.50 (42.5% Upside)
Marijuana stocks are becoming, that’s right, becoming a big business. But right now many cannabis stocks are rewarding the companies as if they’ve arrived. Valuations, in general, are very high. But that’s to be expected. It’s an emerging industry with a massive upside. Millennial investors, a growing segment of the investing community, are flocking to the stocks. These investors are likely to be willing to hold onto these companies for the long haul because they are the target market for many of the beverage and textile products that will be developed in the recreational marijuana space. And these investors are also the true believers when it comes to medicinal marijuana.
Still, the market is still so very young. And there are good and bad companies. Investors need to pay attention to the size and scope of these companies. Right now, marijuana companies are popping up like weeds, but contraction is inevitable. When that happens, the companies that have the highest margins and highest prices will be the biggest winners.
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