Topic: How To Invest

Q: Hello, Pat. What do you think about KushCo, a supplier of cannabis products, as a way to play the marijuana market? Thanks.

Article Excerpt

A: KushCo Holdings, $6.42, symbol KSHB on the U.S. over-the-counter bulletin board (Shares Outstanding: 78.6 million; Market cap: $567.8 million; www.kushco.com), specializes in the wholesale distribution of packaging, vaping products and rolling papers for the cannabis industry. The company is not a marijuana grower; however, its fortunes are directly linked to the cannabis industry as it focuses on products for companies that produce and distribute marijuana products. They include farmers, greenhouse growers, and medical and recreational cannabis dispensaries. KushCo has managed to increase its customer base rapidly over the past 3 years. In 2018, the company served 171 customers, who spent more than $50,000 annually on its products. This compares to 54 in 2017 and 13 in 2016. The largest portion of revenue comes from selling vaping products (53%); this is followed by packaging (29%) and papers and supplies (12%). California is the largest market (49% of revenues), followed by Washington (14%) and Colorado (11%). KushCo sells a wide range of vaporizer cartridges, vaporizer…