Shares of Neptune Wellness Solutions Inc (TSX:NEPT)(NASDAQ:NEPT) skyrocketed more than 30% on Monday. The jump comes just days after the company announced the appointment of a new CFO, Dr. Toni Rinow, who previously worked in private healthcare organizations. The Wellness company also recently got the okay from the U.S. and Canada to sell plant-based hand sanitizer.

Cannabis is a growing part of the company’s business but one of the advantages that Neptune has over a typical pot stock is that it has more diversification. In its most recent quarterly results, for the period ending Dec. 31, 2019, the bulk of its sales – 69% -- came from nutraceutical sales.

Cannabis revenue of $2.8 million was one-third of the company’s sales. In the prior-year period, Neptune had no cannabis revenue contributing to its top line.

The extraction company can play a significant role in the cannabis 2.0 market in Canada but it can also fall back on its other nutritional products and supplements for growth as well.

The stock is a safer bet than most pot stocks and that’s why it’s not a surprise that while Neptune’s shares are down 45% over the past year, they’re still nowhere near the 70% decline that the Horizons Marijuana Life Sciences ETF (TSX:HMMJ) has gone on during that time.

Neptune’s stock currently trades right around its book value and at a forward price-to-earnings multiple of 13. Its recent surge in price has put the stock back to around the level it was in early March before the markets crashed as a result of the coronavirus pandemic.

For cannabis investors, Neptune’s a safer alternative to invest in and could be a solid pick up today.

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