Will 2020 Be Different For Marijuana ETFs

At the start of 2019, the marijuana industry was the 'new' hot investment. By the end of the year, no one was bragging about owning shares in the industry. Why did this happen, and is 2020 going to be more of the same, or should you consider buying into the up and coming industry now?

The marijuana industry still showed signs of becoming the next great thing early in 2019. The industry that was going to take the crown away from technology as the 'fastest-growing' sector in the market. In 2019 the 'pumping' of marijuana stocks ended. But that all came to an abrupt halt around July.

At that time, investors stopped believing the narrative that had been pushed for about 3 years prior. Legalized marijuana in a few States and Canada would help pave the way for global legalization and massive profits for all the companies involved. And don't forget about the new 'marijuana-infused beverage category, which spurred investments in all the big marijuana companies by all the big alcohol beverage companies.

No one wanted to miss out on the 'next big thing,' investors and multinational organizations.

Then reality struck when earnings report after earnings report indicated the industry was not profitable and way to segmented. Furthermore, the earnings reports indicated that while most investors and businesses in the marijuana industry wanted more States and countries around the world to legalize the use of marijuana, that the companies operating in the industry couldn't handle their current demand, let alone anything additional. Shortages in Canada plagued the industry in 2019 and highlighted the biggest problem wasn't opening new markets; it was how they would supply them.

Building new grow houses may sound simple. However, the red tape and political maneuvering typically haven't been easy. Also, in most areas that growing marijuana on a large scale is Continue reading "Will 2020 Be Different For Marijuana ETFs"

Marijuana ETFs Aren't Too 'High' Just Yet

With Canada set to legalize the recreational use of marijuana on October 17th, marijuana-related stocks and thus marijuana ETFs built around these equities have been on the rise. Many investors believe the marijuana industry will the next big growth industry since the drug has never been legal, but known to be rather popular with those looking to relax. Not only have individual investors been looking to the industry as a way to grow their wealth, but the alcohol industry has recently shown serious interest in the industry.

In August we saw Constellation Brands (STZ) increase its stake in Canopy Growth (CGC), we saw Molson Coors (TAP) partner up with Hydropothecary Corp. (HEXO) and there were reports that Tilray (TLRY) was in talks with Diageo (DEO). The rumors that Diageo and recently IPO’d Tilray where in talks has helped TLRY jump more than 100% since going public in mid-July of this year. While the moves from TLRY, HEXO, and CGC have all been astonishing in the past few months, the fact remains that the industry as a whole can still go higher in the future.

When marijuana became legal in Colorado and then California, the industry experienced a significant increase in demand literally overnight. That demand is once again going to jump on October 17th when Canada becomes legal. Furthermore, with the trend appearing to be taking hold not only around the country but the world, it's not hard to see how within maybe the next five to ten years from now, some of the marijuana stocks will be as big as the top alcohol companies.

But, that is where the problem rests. Trying to determine today, which companies are going to dominate the marijuana market in the coming years is not only a daunting task but perhaps more like gambling than investing.

Luckily though, we have a few ETFs that you can pick from today. Continue reading "Marijuana ETFs Aren't Too 'High' Just Yet"

A Few Marijuana ETFs For U.S. Investors

Matt Thalman - INO.com Contributor - Marijuana ETFs


The marijuana industry is taking North America by storm, well maybe that happened back in the 60’s, but now the legal marijuana industry is doing it today. Despite the fact that the U.S. Federal Government still considers marijuana a Schedule I substance and therefore illegal, it appears the “pot” movement is taking hold as 29 U.S. States have already legalized the use of medical marijuana and another eight have legalized marijuana for recreational use.

This movement has drawn the attention of everyday investors and those on Wall Street. Over the past few years, we have seen an explosion of small, risky, marijuana investments pop up. The sheer number of options has been overwhelming and very risky for average investors to get involved with, but that is all changing very quickly.

In the spring of 2017 the first marijuana ETF, Horizons Marijuana Life Sciences Index ETF (HMMJ), debuted. This was investors first chance to buy into the industry without taking on ‘single-stock’ risk in a very fragmented and risky industry.

The big issue though with HMMJ is that it is a Canadian ETF and thus it trades on the Toronto Stock exchange. That means for U.S. based investors it was either difficult, as in their online broker wouldn’t allow them to buy the investment, or very expensive, as in $60 per transaction (that is $60 trading commission to buy and $60 to sell it). Continue reading "A Few Marijuana ETFs For U.S. Investors"

Should You Be Investing In Marijuana

Matt Thalman - INO.com Contributor - ETFs


In April the world's first Marijuana Exchange Traded Fund, Horizon Medical Marijuana Life Sciences ETF (TSE:HMMJ) hit the public markets. The ETF went public at $10 per share and popped during its first few days of trading.

When HMMJ hit the public markets, investors were craving exposure to marijuana stocks as new laws and regulations have helped push marijuana into the mainstream spotlight. Some U.S. states and parts of Canada have decriminalized the drug while it has spread in popularity and acceptance for its medical use.

HMMJ

HMMJ has traded as high as $23 per share since going public, but currently, it is below its Initial Public Offering price, trading at $9.36 per share. So what is happening and is it worth investing in the industry today? Continue reading "Should You Be Investing In Marijuana"

First Ever Cannabis ETF: Friend or Foe?

Analysis originally distributed on May 10, 2017 By: Michael Vodicka of Cannabis Stock Trades

If you like getting a good deal then once again the time has come to take a look at cannabis stocks.

The cannabis sector has fallen into a bear market. A bear market happens when a stock falls 20% or more from its 52-week high.

After posting massive gains in 2016 and early 2017 – the MJIC Index North American Cannabis Index is down 25% from its 52-week high. Take a look.

North American Marijuana Index

I don’t see any fundamental reason for the pullback. As always there has been plenty of good news coming out of the cannabis industry. Continue reading "First Ever Cannabis ETF: Friend or Foe?"