The cannabis investments made by Constellation Brands (STZ) in Canopy Growth (CGC) more than a year ago, and followed by last week's announcement that Altria (MO) would acquire 45% of Cronos (CRON)  , have sent some investors in search of additional Canadian producers.

One Hand Washes the Other

The path of the business of Canadian cannabis has proven to be a road strewn with pitfalls, from debt-loads to supply issues to an effort to expand before legalization expands beyond the opportunity at hand. For those of us who do sit on the sidelines, we wonder. Is this business able to thrive in stand alone fashion? Is this business better off as a segment, or a slice of some larger pie? What we see above is really what some have already opined on out loud. That cannabis might steal market share from booze or tobacco, so firms from those corners of the economy might feel the need to act in self defense. Now, we must ask ourselves... is there room for more speculation? In other words. If there is a next, then just who is that next? Hmm.

Who's Next?

I have a couple of ideas, and I am already there... in a way. If you don't recognize my name, I co-manage the "Stocks Under $10" portfolio at Real Money with my colleague, Chris Versace. We have in our portfolio two stocks that may just fit the bill, so I guess treat this as a free preview of that product... in a way.

Aurora Cannabis

This name recently co-domiciled at the New York Stock Exchange along with Toronto. Seen the name in the news this morning? That's because the firm just agreed to acquire Farmacias Magistrales, Mexico's only licensed importer of THC containing raw materials. You may recall that Coca-Cola (KO) had been linked to Aurora in talks that ended up going nowhere. But, it does seem plain as the nose on one's face. CBD-infused products are growing, and are probably going to keep growing in a meaningful way. Some folks have a personal issue with the use of cannabis outright. Nobody has a problem with pain relief that does not have any other impact. Diageo (DEO) is also thought to be kicking tires in the space.

As for my favorite, Aurora Cannabis (ACB) ... the firm runs with more cash on hand than it does have in total debt. Though the firm still operates with negative cash flows in place, current ratios suggest that the firm can comfortably meet short to medium term obligations. That does not seem to be an issue, and trading at less than six bucks, the price might just be right for a hunter in need of some exposure.

Aphria

Aphria (APHA) would be another name of interest similarly priced, in a similar fiscal situation.

Looking to keep it domestic? Looking to stay away form actually touching the plant? Then, we have another idea...

KushCo Holdings

This firm never touches the cannabis plant, it simply serves all of your cannabis business needs. Kush (KSHB) has been making great strides in expanding it's range of coverage. Having originated on the west coast, the firm is making progress making it's products (mostly packaging) available where ever usage is legal. The focus of this firm is from the business to business perspective. They are not likely running the local head shop, but the guy running your local head shop has probably heard of Kush if not even having dealt with them. My own thoughts are this firm is well positioned for the future of this industry regardless of the pace of legalization, and stands to benefit whether the industry consolidates or not.

And These Factors

There are a number of factors impacting thought patterns for cannabis investors these days. As the legalization of cannabis for both recreational and medicinal purposes sweeps the nation on a state by state basis, use of the plant remains illegal at the federal level. Investors watch with interest as the nomination of William Barr to the position of Attorney General (a position Barr previously held 25 years ago) develops.

Aurora Cannabis and KushCo Holdings are positions in TheStreet's Stocks Under $10 portfolio. Click here to learn more about this portfolio, trading and market commentary product.

At the time of publication, Stephen Guilfoyle was Long MO equity, Short Mo Calls.