Below we presented the list of 5 Best Hemp Stocks to Buy Now. For our detailed discussion and a more comprehensive list please see 13 Best Hemp Stocks to Buy Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock right now. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage (or at the end of this article). Keeping this in mind let’s take a look at the best hemp stocks to buy:
5. Turning Point Brands, Inc. (NYSE:TPB)
No of HFs: 24
Total Value of HF Holdings: $98.0 Million
TPB is the 5th best hemp stock to buy now. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had over $20 million invested in the stock at the end of September. An insider recently purchased 1,500 shares at around $22 in May 2020. The stock is up 140% since then. Maran Capital Management LLC mentioned the stock in its 4Q 2020 investor letter:
“Turning Point Brands, a branded consumer products company executing a buy and build strategy, has been a holding of the partnership on and off for the past four years. TPB is focused on “active ingredients,” such as nicotine (including tobacco-based and non-tobacco variants, but not cigarettes), caffeine, CBD, and more. Their Zig Zag brand dates back over 150 years and is the top-selling rolling paper brand globally. I don’t believe we are paying anything for the option, but if cannabis is legalized at the federal level in the US, Zig Zag could see a step-change in its growth. I love these types of situations. I’ve underwritten TPB based on its “boring” legacy businesses, but there is a lot of upside in its “new gen” segment (vaping, CBD, other active ingredients), as well as the potential for a real acceleration in Zig Zag’s growth under various scenarios.
A few months ago, I had the pleasure of interviewing Larry Wexler and Bobby Lavan, the CEO and CFO of Turning Point Brands, respectively, at the Casulo Buyside Fireside, hosted by Shai Dardashti. We discussed why they are so excited about the opportunities ahead at TPB, the significant optionality embedded in the company, the fact that the company was one of the few to increase its share buyback authorization last March (and act on it), how management targets a 17.5%+ ROIC on all capital allocation decisions, and the growth prospects across all three of the company’s major portfolio segments.”