Bloomberg: Cannabis Stocks Gain After Canada Legalizes
Cannabis stocks have been increasing in value rather rapidly over recent months, with stocks listed on Canadian and U.S. financial markets receiving boosts from the mainstreaming of marijuana. As big-time investors and major companies invested, or were reported to be eyeing potential entries into the market, investors of all stripes have taken notice. As Bloomberg reported, cannabis stocks have risen one day after Canada legalized and a few more Canadian companies have announced plans to join Canopy Growth, Tilray, and Cronos Group on U.S. stock exchanges:
Cannabis stocks are rebounding Thursday, gaining after a lackluster day Wednesday, as Canada’s recreational marijuana legalization looks to be off to a good start, and as two Canadian pot producers seek listings on the New York Stock Exchange.
Day one of recreational sales “appears to have been a success highlighted by the long lines and enthusiasm from shoppers,” GMP Securities analysts led by Martin Landry told clients in a note, adding that “seeing cannabis shoppers wait in lines as opposed to take the traditional easy illegal supply route is refreshing and bodes well for the recreational market in Canada.”
Separately, Aurora Cannabis Inc. and Aphria Inc., the third- and fourth-largest Canadian pot companies by market value, got a boost on their plans to list shares on the New York Stock Exchange. Aurora plans to uplist its over-the-counter shares next week to start trading under ticker ACB, while Aphria also filed its intentions with the SEC.
It is best to plan for the long-term and not get carried away by any short-term gains, but the overall future of the cannabis industry seems to be extremely bright. There will certainly be more regulatory and political challenges in Canada’s market, but the growth potential of moving into the United States and Europe in the near future provides tremendous opportunities.
Join the International Cannabis Business Conference in San Francisco to learn the latest about the cannabis industry and network with top investors and entrepreneurs on February 7-8, 2019. Be sure to purchase your early-bird tickets by January 18th to save! After San Francisco, the ICBC will be hopping over to Europe for events in Barcelona and Berlin. And stay tuned for future locations to be announced soon!