Will These Pot Stocks Thrive on November 3rd?
November 3rd will without a doubt be a big day for marijuana stocks. While the presidential election will be a big determinant of the future of the cannabis industry, statewide votes will also be consequential. While many big name marijuana stocks like Canopy Growth Corp. (CGC Stock Report), Aurora Cannabis Inc. (ACB Stock Report) and Aphria Inc. (APHA Stock Report) are popular choices, there are plenty of large marijuana stocks to watch. These companies tend to offer investors the greatest amount of exposure to the cannabis industry. This is because they are the largest, and most forward-facing aspects of the legal market.
While the election mostly pertains to U.S. cannabis stocks, Canadian pot stocks have a lot to gain as well. If all legislation goes according to plan, it would give Canadian marijuana stocks the opportunity to go into the U.S. in greater numbers than before. As stated before, the presidential election will be very important. But, there are also five states that are voting on whether or not to legalize cannabis. This could serve to make the U.S. cannabis industry much larger and consequently, worth much more. For now, it remains relatively unknown as to what will happen come election day. With that in mind, here are two big-name pot stocks to watch on November 3rd.
A Large Canadian Marijuana Stock: Cronos Group Inc.
Cronos Group Inc. (CRON Stock Report) is one of the longest standing marijuana stocks in the cannabis industry. In the past, CRON stock rose to popularity as one of the best choices for investors to consider. But, soon after the pot stock boom, many marijuana stocks came crashing down in value. As things began to pick back up again, the big tobacco company, Altria Group Inc. (MO Stock Report), announced that it would purchase a 45% stake in Cronos Group. In the past two years since the deal hit the market, things have not been so good to CRON stock.
With the Canadian cannabis industry seeing trouble, and CRON stock itself not showing much upward momentum, things could be better. But, in the past few months, it looks like some aspects have begun to go in Cronos Group’s favor. The company has been working tirelessly to enter into the U.S. cannabis industry. It has done this with a big play for CBD. Through acquisitions, Cronos Group has become one of the major players in the U.S. CBD industry. But, with Covid on the rise once again, CRON stock could be at a value price level. With its future prospects, CRON stock remains a pot stock to watch; albeit a riskier one.
Another Giant Canadian Pot Stock to Watch: Tilray Inc.
Tilray Inc. (TLRY Stock Report) is another one of the larger marijuana stocks and one that has been quite contested by investors. Similar to CRON stock, TLRY stock has seen some massive ups and downs in the past. But, as a major cannabis supplier, the company stands to gain a lot from any increased marijuana demand. In the U.S., we have seen an increase in demand for marijuana due to Covid. But, in Canada, we have yet to see the same thing occur. Many believe that this is only a short-term issue and demand will rise in the near future.
As stated earlier, Canadian marijuana stocks could benefit greatly from new legislation occurring in the U.S. With the upcoming election, Tilray could have an opportunity to get into the U.S. cannabis industry. Whether or not it is able to do so in a big way remains to be seen. But, due to a recent selloff of TLRY stock, the price of the company is at bare bones value. This means that if investors believe in the long term of TLRY stock, the current price could be intriguing. Of course, a lot depends on what happens in the next few months. Whether or not Tilray can begin to turn a profit, or even glimpse at being in the black remains to be seen as well. Regardless, TLRY stock continues to be a marijuana stock to watch.
Should You Buy These Big Name Marijuana Stocks?
The short answer is that it is completely up to individual investors. The two pot stocks mentioned above are notoriously risky. Because of this, investors either have to play the short term or bet on the long term. But, any investing in between could mean lower chances of profitability for investors. With projections for the global cannabis industry continuing to rise in the next decade, big-name pot stocks remain quite attractive. With that in mind, it is up to one’s own investing style to decide if these two pot stocks are pot stocks to watch.
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