Low-Cost Pot Stocks To Consider, According To Green Market Report's Debra Borchardt

Green Market Report Co-Founder and CEO Debra Borchardt is a leading authority in the investment space, cannabis or otherwise. The former Bear Stearns VP recently spoke with Benzinga to discuss value stock options and her top pick.

For investors with minimum funds, there are a few low-cost options that might be worth consideration, she says.

KushCo Stands Out

Ancillary packaging and container brand KushCo Holdings Inc. KSHB topped Borchardt's interest for two reasons.

The company's net revenue guidance increase for 2021 stands at a reported $130 to $160 million. Borchardt also noted a potential Nasdaq listing, which has been in the mix since January 2020.

Borchardt is confident the listing will happen but doesn't understand why it has taken so long. She brought up that Nasdaq is already involved in the cannabis space with names like Akerna Corp. KERN and Greenlane Holdings Inc. GNLN.

Borchardt expressed confidence in KushCo's management team as well, noting the company's ability to weather the Nasdaq listing, shifting company focus and maintaining during the pandemic.

"They kind of had a reset with getting rid of the little clients and focusing on big clients," said Borchardt.

The pivot hurt the company for several quarters but now appears on track, she added.

Above all else, she is confident in CEO Nick Kovacevich, who has a history of underpromising and overdelivering. She also praised the company's ability to do well in a less flashy packaging space than SPACs and other more media-friendly sectors.

"Packaging is just kind of a picks and shovels kind of company," said Borchardt. She called the space the "surprise sleeper," predicting KushCo will do well.

2021 Expectations And Low Fund Investment Options

Borchardt expects 2021 to be a positive year for cannabis, and that recent market fluctuations are not a reaction to any negative news.

The movement is just standard market profit-taking after a period of solid performance, she explained.

"People are enjoying the profits of the move," she said. "And they're going to redeploy that money again." 

Those looking to invest in the market with limited funds have several investment strategies to implement. With several hundred to a few thousand dollars to invest, Borchardt supports more opting for shares and potential with penny stocks.

Believing the higher cost per share options like GrowGeneration Corp. GRWG can only run so far, the investor and journalist likes the smaller options with room left to make big moves.

Slang Worldwide Inc. SLGWF and Indus Holdings Inc. LOWLF are two more companies to consider, she said, citing the latter's recent purchase of Lowell Herb Co. as a positive move.