There are great cannabis companies going unnoticed — here's how 2 veteran investors say you should find them

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"There's not two tiers, there's like five," Baruchowitz said.

"There's another awesome tier of people who haven't quite punched through, but they're really showing some strong operations and great assets," Paxhia said.Look at the details to figure out which companies are worth investing in Take the time to dig through financial filings and listen to earnings calls to figure out which companies are in ideal locations and which have strong asset acquisitions and a big focus on profitability.

He added that big companies have gotten to the point where they've built out their presence and have proven their operational capabilities. What you're betting on now if you invest in the top names is their ability to allocate capital. Smaller companies, he said, have the potential to show more disproportionate growth, so they can be a good place for investors to put their money to work."A small company that goes from $10 million in profit to $50 million is going to probably trade better than a company that's going from like $100 million in profit to like $125 million," he said."It's easier to see paradigmatic shift when you're smaller.

 

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