Shares of water resource specialist Cadiz (NASDAQ: CDZI) have jumped 19.5% this month through Aug. 23, while the S&P 500 , including dividends, is down 4.3%. That brings the stock's 2019 gain to 25.5%, versus the broader market's 15.1% return.

The catalyst for Cadiz stock's August pop was the company's announcement that it has entered the U.S. hemp market. Hempis a strain of cannabis that contains a negligible concentration of tetrahydrocannabinol (THC), the psychoactive substance responsible for giving marijuana users a "high."

Here's what you should know.

Management’s strategic choices at the outset of a new business venture can significantly influence future financial successes or failures, and it’s encouraging to see executives at a cannabis growth stock like Aphria (TSX:APHA)(NYSE:APHA) quickly learning from and correcting a seemingly early mistake made in 2018 to give the company a new market access.

KushCo Holdings (OTC:KSHB) is the latest marijuana stock to announce a round of fresh borrowings. The company, which focuses on the supplies and packaging used to consume cannabis, said it secured a $50 million credit facility, to be provided by Monroe Capital, a credit asset management company.

The facility consists of a $35 million revolving credit line, plus a $15 million accordion (i.e., the right for the borrower to expand the facility if need be). Its availability is contingent on "covenant compliance and borrowing base ability," KushCo said.

Small cannabis companies -- and some that aren't so small -- don't have a lot of avenues for raising capital. That's especially true in the U.S., where federal laws place tight restrictions on financial institutions' ability to do business in the cannabis industry.

Canopy Rivers (OTC: CNPOF) and Innovative Industrial Properties (NYSE: IIPR) provide alternatives for cash-strapped cannabis companies. Investors have rewarded Innovative Industrial Properties more for its efforts, with the stock soaring more than 120% year to date while Canopy Rivers shares have dropped over 20%. But which of these two cannabis stocks is the better pick looking ahead?

Investors aren’t buying the growth story of cannabis stocks anymore. They are getting impatient and want to see a clear path to profitability now.

The reflection of this thinking can be seen in the stock prices of top marijuana producers that are plunging — and not showing any sign of bottoming out.

Canopy Growth Corp. (TSX:WEED)(NYSE:CGC) and Tilray Inc.(NASDAQ:TLRY) are the two big victims of this bloodbath in marijuana stocks, as these companies have yet to show a clear path to profitability. 

Chewy, colourful cannabis-infused gummies in bright colours and in the shape of animals or creatures are among the best-selling edible pot products on the black market -- but Canadians shouldn't expect them on legal shelves.

Regulations that will make edibles legal come into force Oct. 17, exactly a year after Canada legalized the sale and purchase of dried and fresh cannabis, oil, seeds and plants. The rules laid out so far are aimed at keeping the new pot products out of the hands of kids and stipulate they can't be seen as "appealing to young persons" -- but Health Canada has yet to provide additional details on exactly what crosses the line.

There are as many reasons to be bullish on cannabis stocks as there are reasons to be bearish. With the full legalization of the Canadian market in October of last year, cannabis seems poised to go much more mainstream in the years ahead. The highest industry estimate from a mainstream Wall Street firm is Stifel's recent $200 billion estimate for global legal cannabis sales by 2030. That would be up roughly 13 times from the $15 billion estimated global sales for 2019!

In case you haven’t noticed, Canada’s enviable cannabis sector has been busting more than booming lately. In the months and weeks counting down to legalization, cannabis stocks such as Canopy Growth(TSX:WEED)(NYSE:CGC) shot well into the stratosphere. Unfortunately, after a rally in the early part of the year, pot stocks have taken a turn and dropped sharply. In the case of Canopy, the stock is down 44% in the past six-month period, trading right near its 52-week low.

Let’s take at why the cannabis sector is lagging, and if Canopy is still the incredible investment that it was once was.

When it comes to Canadian cannabis companies, Hexo(NYSE:HEXO) doesn’t always get the recognition it deserves. Hexo stock is often seen as the little brother to bigger players like Aurora Cannabis (NYSE:ACB) and Canopy Growth(NYSE:CGC). 

But if you’re looking to get in at the ground floor with a growing cannabis company, HEXO isn’t a bad option. The company’s sales have grown by massive amounts over the last 12 months. And the company predicted its revenue will double over the next quarter. 

Marijuana projects to be a big-money business, with various Wall Street pundits forecasting anywhere from $50 billion to $200 billion in annual worldwide sales in a decade. Growth like that is hard to ignore, which is why pot stocks garner so much attention. The big question, of course, is which cannabis stocks will stand out?