Nearly every cannabis company with big ambitions is involved in the medical marijuana segment, given its relatively high margins.

One company in particular, though, has more potential than the rest, according to veteran Motley Fool contributor Eric Volkman. He reveals his medical marijuana stock pick for 2021 in this conversation with Cannabis and Healthcare bureau chief Corinne Cardina Jurney during Motley Fool Live, recorded on Dec. 22.

Corinne Cardina: Let's talk about what you think the best medical marijuana stock is for 2021.

Eric Volkman: I like Trulieve (OTC:TCNNF). Trulieve is, basically, a comprehensive medical stock that's based in Florida and it has made a lot of inroads into that market. I don't know if it's No. 1 in Florida, probably, but its got pretty strong market share into the double digits. It seems to constantly be opening dispensaries throughout the state.

Keep in mind Florida is a big state. Also, parts of it skew older in terms of demographics, the kind of demographic that would probably be more either inclined, or requiring of, medical marijuana and even while they are expensive and they are eager to build out their footprint, they haven't been careless about it, they haven't overpaid for assets that they bought. They're doing it in, what I would characterize, as a steady and sensible way, and that market still has room for growth.

Also the South isn't really a hotbed of marijuana legalization, that might be changing. We were discussing just before the Green Wave, which includes Mississippi which is not that far from Florida. That could maybe help trigger a mini-Green Wave in the South, and if so Trulieve might be poised to take advantage of that.

Neighboring places like Georgia, for example, could also be a pretty good market. Particularly in cities, in urban areas where demographics skew younger and I think there's more of a receptive audience and potential customer base for their services. So Trulieve is something that's worth keeping an eye on.

Of course, they're subject to the challenges and limitations of every marijuana company. But they are handling this pretty well and they're a little bit low key, a little bit under the radar. They haven't as far as I know, indicated any plans or any shift in strategy to build out from Florida, but I'm sure they're at least considering it. That's the stock worth watching, I think that's a stock that is going to do relatively well [in 2021].

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.