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Cannabis Stock Market – The Global Changes in The Industry

Cannabis stock market
The marijuana industry has exploded since 2018, when more countries around the globe, including America and Canada, legalized it for medicinal or recreational purposes. The industry has also been creating jobs and lot of great investment opportunities! With cannabis’ projected worth in billions, many publicly-listed pot stocks are working their way up to occupy a place on the most reputable exchanges. Read below how the pot industry got here and why you should consider investing in a marijuana stock as soon as possible.

Marijuana legalization – what changed?

It is safe to say that 2018 has been a game changer for the pot industry. Starting with the first day of the year, California’s law took effect, allowing people 21 and older to use marijuana; and in October, Canada became the first industrialized country to legalize recreational cannabis. The industry received major support in other American states, as well. On January 22nd, Vermont’s legislature legalized recreational marijuana and in November, Michigan became the first Midwestern state to legalize recreational marijuana use. Missouri and Utah approved medicinal marijuana use in 2018, too.

Some other countries around the globe where the industry surged were Mexico, which ruled individuals can use marijuana under their right to decide their own recreational activities, without legalizing it per se; New Zealand and Thailand, which legalized medical marijuana; and finally, Israel’s Parliament approved a law to allow medical marijuana exports.

Top Cannabis Stocks to keep an eye on

According to the trading web portal Investopedia1, the ArcView Market Research and BDS Analytics reports show that, global spending on legal cannabis is expected to grow 230% to $32 billion in 2022, compared to $9.5 in 2017. However, even if more American states started to approve the recreational or medical use of marijuana, the overall number isn’t powerful enough, as pot remains illegal and is classified as a Schedule I drug at the federal level. That’s also the main reason why there are fewer publicly-listed pot companies in the United States. The Canadian stock exchange, on the other hand, is welcoming tons of new companies. Here are some of the hottest cannabis stocks:

1. Canopy Growth Corp. – The largest medical cannabis company in the world

Canopy Growth is already dominating the cannabis industry and it has no plans to slow down. The pot giant is one of the industry’s few companies publicly-listed and traded on the New York Stock Exchange (NYSE: CGC), as well as on the Toronto Stock Exchange (TSX: WEED). Some major brands from its portfolio are: Tweed, DNA Genetics, FORIA, Spectrum Cannabis, and CraftGrow. In all fairness, Canopy is arguably the most valuable cannabis stock at the moment2 and an investment opportunity. To get the best out of an investment, find a reliable online broker you can trust. TradeFW.com is an online investment company

2. Cronos Group Inc. – The first and one of the few cannabis companies listed on the NASDAQ

Cronos Group Inc. operates within Health Canada’s Access to Cannabis for Medical Purposes Regulations, through its brands: the two wholly-owned Canadian producers Peace Naturals and Original BC, also known as OGBC; and Whistler Medical Marijuana Company. Its presence expands on several international markets, including Cronos serves an international market, including Germany, Australia, and very soon in Israel. Cronos was the first cannabis company to be listed on the NASDAQ stock market (NASDAQ: CRON). As of the fiscal year ending March 31, 2018 the company generated $2.2 million in revenue and its shared gained 34.4%3, according to S&P Global Market Intelligence.

3. CannTrust Holdings Inc.

Founded by Norman Paul, CannTrust Holdings Inc. is a Canadian company that produces and sells medical cannabis through its subsidiary, CannTrust Inc. The company is publicly-listed and traded on the Toronto Stock Exchange (TSX: TRST) and in January 2019 announced that it has applied to list its common shares on the New York Stock Exchange (NYSE). Last year was a game changer for CannTrust, too – as in the third-quarter of 2018 it had sales of C$500,000 in recreational pot and in November of the same year, its shares went up more than 20% higher, boosting the company’s valuation close to C$1 billion4.

Why choose pot stocks

In terms of legalization, 2018 has been a huge year for the marijuana industry, but it was also just the beginning. If the stock market reacted like that to a few legal changes, imagine how it’s going to be in the next years! If you’re interested in pot stocks, choose a trustworthy broker like TradeFw to keep your capital safe in segregated accounts on the long-term and get the best out of your investment opportunities!

References:

  1. Mrinalini Krishna, “Top Marijuana Stocks to Watch”, Jan, 2019, investopedia.com, https://www.investopedia.com/investing/top-marijuana-stocks/
  2. Cornerstone Investments, “The Best- And Worst-Performing Cannabis Stocks Of January 2019”, Feb, 2019, seekingalpha.com, https://seekingalpha.com/article/4237879-best-worst-performing-cannabis-stocks-january-2019
  3. Beth McKenna, “Why Cronos Group Stock Gained 34.4% in 2018”, Jan, 2019, finance.yahoo.com, https://finance.yahoo.com/news/why-cronos-group-stock-gained-020000207.html
  4. Max A. Cherney, “CannTrust makes its case as a major Canadian weed producer, stock explodes higher”, Nov, 2018, marketwatch.com, https://www.marketwatch.com/story/canntrust-makes-its-case-as-a-major-canadian-weed-producer-2018-11-14

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