2018 was a tough year for long-term buy and hold marijuana investors. As a whole, the industry went on quite a wild roller-coaster ride. Marijuana stocks popped in December 2017 as anticipation for the ‘legalization’ of the drug occurred in the state of California on January 1st, 2018. We saw stock prices and the ETFMG Alternative Harvest ETF (MJ) jump as investors anticipated a ‘boom’ for the industry.
But, within a month or so of the legalization date, most of the marijuana-related stocks have fallen in price and MJ was trading below its December 2017 price. A few months went by, and most of the industries stocks just meandered along. Then the next big ‘legalization’ date grew near, October 17th, 2018, the day marijuana became legal in Canada.
The price of most of the well known and many of the lesser-known marijuana stocks, and MJ of course, once again began to ski-rocket. MJ, for example, went from $24 per share in August 2018, to as high as $45 per share, with its peak occurring just days before October 17.
Each time a new State or large country legalizes the drug, the companies in the industry experience an unfound increase in their valuation as investors buy shares at an insanely high rate. This type irrational buying leading up to a hyped up, essentially arbitrary date has put a lot of investors in a really bad place in 2018. MJ for one is down more than 24% in 2018, while other individual marijuana companies have seen their stock prices fall even further. Continue reading "3 Reasons Why You Should Still Avoid MJ, The Marijuana ETF"
O, Canada! What a historic moment for the cannabis industry!
Canada just became the first developed country in the world to legalize recreational cannabis.
Now that legalization has set billions of dollars in motion, Cannabis Stock Trades members are in a prime position.
We've been prepping our portfolios to capitalize on this giant day and it's finally here.
Cannabis stocks have a clear history of jumping higher before and after these key legalization dates.
Let's take a look at three recent examples.
1. Cannabis stocks soared when Colorado went legal on Jan 1, 2014.
On January 1, 2014, Colorado became the first US state to legalize recreational cannabis.
It was a breakout moment for the US cannabis industry – and it sent US cannabis stocks soaring. Continue reading "O, Canada! Huge Day For Cannabis Investors"
Canopy Growth Corp (WEED, CGC) has been one of the best performing cannabis stocks in the world.
Shares of the world’s largest cannabis company are up 560% in the last twelve months.
One of the reasons Canopy has been so successful is because of CEO Bruce Linton.
Linton has developed a reputation as one of the best CEOs in the young cannabis industry.
Not only does Linton have a bold vision for Canopy and the entire cannabis industry, he has a proven history of execution.
If you missed out on Canopy’s big run higher don’t worry – I see a new way to invest in Bruce Linton and his success with Canopy. Continue reading "Can Canopy Rivers Copy Canopy's Success?"
Analysis originally distributed on June 28, 2018 By: Michael Vodicka of Cannabis Stock Trades
October 30, 2017 was one of the best days of the year for the young cannabis industry.
That’s the date when Constellation Brands (STZ), the second-largest US beer maker, announced a 10% stake in Canopy Growth Corp. (CGC/WEED), the largest Canadian cannabis company.
It was a groundbreaking moment for the cannabis industry because it was the first time that a big alcohol company had invested directly in a cannabis company.
Not only did it give the young cannabis industry tons of credibility, it also sets the stage for big alcohol to invest billions into the cannabis industry in the next few years.
In the short run, Canopy shares jumped more than 23% in one day on the news.
In the long run, it triggered a 10-week rally in Canopy – and the entire cannabis sector – that sent shares deep into a new all-time high. Take a look. Continue reading "Molson Coors Eyeing Canadian Cannabis Partner"
Analysis originally distributed on June 21, 2018 By: Michael Vodicka of Cannabis Stock Trades
Germany has quickly emerged as one of the fastest-growing medical cannabis markets in the world.
According to a study on the German health insurance market, 500 German patients requested medical cannabis in January of 2017.
In December of the same year, the number of patients requesting reimbursements for cannabis prescriptions skyrocketed to 13,000.
What was the biggest factor that drove the huge spike?
German insurance companies started covering medical cannabis subscriptions in 2017 – and the number of patients surged.
Looking forward – this bullish trend is expected to accelerate.
Tens of thousands of new patients are expected to enroll in Germany’s medical cannabis program in 2018.
Longer term – I expect the success of Germany’s medical cannabis market to usher in recreational legalization. Continue reading "A New Entry Into Germany’s Cannabis Industry"