Cannabis is now legal in Canada for recreational use. Weed Stocks, as a result, are all the rage since then as investors in the country and towards the north want to jump early into the speculative business. A variety of factors including weed’s growing use for medicinal problems, Canada’s legalization and major investments from giants like Corona brewer Constellation Brands, has made the pot investment mainstream in recent months.
Investors are looking to gain profit in the newly emerging market that generated about $8.5 billion in the U.S. last year on legal cannabis and estimates suggest the market would grow to $23 billion by 2022. However, investors should be careful about not getting burned out by the investments in cannabis whose rise has been compared to the boom in cryptocurrency. The most popular digital currency, bitcoin has climbed to $19,500 last year and has suffered a loss this year falling down to one-third of the value.
Below are some of the top cannabis stocks to watch out:
This Toronto-based company sells cannabis for medicinal and recreational purposes. It names the recreational use pot as ‘spinach’. Shares of Cronos are 40 percent high from last year. From the time it started trading on the Nasdaq in February 2018 to the end of the year, Cronos has gained about 36 percent. The huge jump in revenue in 2018 was driven by the increased production capacity, greater sales of cannabis oil and expansion of the medical marijuana client base.
The Canadian company indulged in the cultivation and distribution of cannabis for medicinal purposes, Tilray shares have gone high last year. Since it began trading as a public company in the U.S. last July on the Nasdaq stock exchange, it has achieved 771 percent growth. Tilray’s gross margin was 20 percent in the fourth quarter of 2018. While the stock almost tripled in 2018, it is down by 10 percent this year. However, its recent partnership with AB InBev gives it the potential to open up a great market in the beverages industry.
A licensed producer of medicinal cannabis in Canada, Aurora Cannabis experienced a rally of over 500 percent from 2017 to 2018. This month, the company announced a big overseas expansion which could benefit it and its investors. Over the past 12 months, Aurora has gained 55.2 percent compared to a gain of 10.8 percent for the S&P 500.
Another Canadian brand focusing on the sale of medical marijuana, Canopy Growth has a wide range of products including soft gel capsules, oils, hemp and more to treat issues like nausea, seizures and chronic pain. With a market cap of 14.6 billion dollars, Canopy Growth has garnered media attention in 2018 when the beverage industry leader, Constellation Brands spent $3.8 billion to help Canopy’s new product development.
ETFMG Alternative Harvest ETF
The ETFMG Alternative Harvest ETF is a great choice for those who want to invest in the big basket of cannabis-related stocks. The exchange-traded stock was 22 percent up in 2018. There is another compound named Psilocybin Mushrooms. Psilocybin is present in over 200 species of mushrooms where it can be easily extracted. The concentrated psilocybin extract should have a pungent aroma. You can combine the mushrooms with different foods to mask the bitter taste and enjoy the effects.