Since the beginning of the year, the marijuana sector has underperformed dramatically. The effects of COVID-19, oversupply in Canada, and falling consumer spending are all leading investors to get out of weed stocks en masse, with little regard for long-term outlook.

However, the market has changed dramatically from even just a quarter ago. There are now 1,000 marijuana stores open in Canada, and a federal bill to legalize weed in the U.S. was proposed by Sen. Tina Smith (D-Minn.) on July 31. When an entire sector becomes battered, it often creates opportunities for investors to buy top-performing businesses at a bargain price. Today, let's take a look at two companies that fit this category.

What’s the difference between stepping inside a neighborhood weed store and retail outlets designed to cater to the alcohol consumer?

Back when cannabis advocates were first successfully moving to legalize marijuana for recreational use at the state level, one of the most popular phrases used to describe what that might look like is “in a manner similar to alcohol.” The gist of the pitch was that upon the legalization of marijuana, there would be a taxed and regulated market put into place — same as the alcohol trade — that would allow adults 21 and older to buy cannabis products close to the same way they might purchase beer at a liquor store.

Private cannabis retailers in Ottawa are fighting to have home delivery reinstated after seeing a decline in sales and worrying people might be turning to the black market.

When COVID-19 hit this spring, the government closed all cannabis shops, but later allowed private retailers to operate delivery and curb-side pickup. That ability was rescinded in July as the province moved into Stage 3 reopening. 

The Ministry of the Attorney General explained that the shops were allowed to reopen with pandemic measures in place, including booking appointments or using a "click and collect" service which allows customers to schedule a pick up time.

Cronos Group stock and other marijuana stocks fell on Thursday after the Canadian cannabis producer reported a steeper-than-expected second-quarter loss, as lower pot prices in Canada and coronavirus-related store closures in the U.S. triggered millions in impairments and write-downs.

The company said it expected those also racked up costs related to a review of last year's financial results. That review concerned purchases and sales made through its business-to-business channel.

Cronos reported the results as the marijuana industry reckons with layoffs, coronavirus restrictions and overvalued assets.

Canadian cannabis companies have not yet established themselves as consistently profitable companies. The biggest names in the sector have reported net losses for years. However, as the sector expands, some investors may be wondering whether Canadian cannabis companies will ever pay dividends. Let’s take a deeper dive into that question.

"In some cases, we lost food security with the arrival of this new industry."

British Columbian farmers experienced record sales in 2019 – and it’s in large part thanks to weed, according to Energetic City.

Cannabis accounted for roughly two-thirds of B.C.’s agricultural revenues last year, giving a record boost to the province’s farm-generated income – beating out previous top crops like blueberries, mushrooms, grapes and tree fruit.

But despite the province’s considerable weed-related windfall, not everyone is happy.

CALGARY, AB, Aug. 6, 2020 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or the "Company") (CSE: ISH), a Canadian company that has established a national network of Spiritleaf retail cannabis stores, today announced additional Spiritleaf store openings and the continued expansion of its retail cannabis store network in Alberta and Ontario. The Company also announced it has surpassed the one million customers served milestone for 2020 during the month of July. It recorded its highest-ever monthly customer count in July as well with 205,000 guests served.

"Our licence reinstatement is the result of an enormous amount of hard work by the CannTrust team," says CEO Greg Guyatt

Embattled Canadian cannabis producer CannTrust announced Wednesday morning that its Vaughan manufacturing facility has had its licence restored, according to a press release.

The re-licensed producer attributes its reinstatement to has “working diligently to resolve regulatory deficiencies within its business.”

Over the past year, the company has faced mass layoffs, major staff shakeups, formal investigations, numerous financial blows, and the loss of its licences after a whistleblower revealed that the company was illegally growing cannabis in five unlicensed grow rooms hidden from Health Canada by specially-built poly walls.

For years now, cannabis companies and their leaders have struggled to leverage digital advertising in order to tell their story and raise brand awareness. Popular platforms like Google, Facebook and Instagram are not as cannabis-friendly as one might think. So in an age where content is king, what’s the best move for a cannabis leader working hard to tell their brand’s story, amplify awareness, build trust and establish credibility as an industry expert or go-to choice in B2B and B2C markets? 

Mike Straumietis, the CEO of Advanced Nutrients — which bills itself as the no. 1-selling cannabis fertilizer brand in the world — is the brains behind a new cannabis business competition series, set to premiere later this month. 

Sixteen cannabis entrepreneurs will compete for a $1 million prize and the chance to partner with Advanced Nutrients, which currently sells its products in 107 countries. The show will be based around a series of challenges that test the entrepreneurs business savvy, character and stamina, according to a press release.