Are These Canadian Pot Stocks Worth Watching
While U.S. marijuana stocks have taken all the hype in the past few months, Canadian pot stocks still have quite a bit of value. In the past few years, Canada has been the focal point of the cannabis industry. With major and minor pot stocks like OrganiGram Holdings Inc. (OGI Stock Report), Sundial Growers Inc. (SNDL Stock Report) and Valens Corp. (VLNCF Stock Report) getting attention, what about the largest Canadian marijuana stocks to watch? Well, there are a few reasons why investors have been watching Canadian pot stocks. For one, problems in the past six months have led to many marijuana stocks seeing lower values than before.
But, with increasing demand, these same companies could see an uptick in value in the next few years. This means that there could be some long term upward momentum if all things go according to plan. In addition, if the U.S. is able to decriminalize cannabis in the next few years, it would allow many Canadian cannabis companies to do business in America. All of these factors mean that some Canadian pot stocks could see solid upticks in value in the long term. With that in mind, here are two Canadian marijuana stocks and what they are up to in November 2020.
Top Canadian Marijuana Stock To Watch: Aurora Cannabis Inc.
Aurora Cannabis Inc. (ACB Stock Report) is without a doubt, one of the most popular Canadian marijuana stocks. After a few years of troubled trading, the company has since been able to get its act together for the most part. In September of this year, ACB stock shot up after announcing a new CEO alongside a write down of goodwill totaling around $1.2 billion. While the company has been unable to fully capitalize on the recreational cannabis industry, it has been working to put in a long term plan.
An analyst recently stated that “management will increase focus on other premium and super premium flower lines, and expand other formats.” On Monday, November 2nd, shares of ACB stock shot up by over 17%. This is an incredible gain, and one that could be potentially attributed to the upcoming election in the U.S. Year to date, ACB stock is down by around 80% which is not such a good sign. But as stated before, the real potential for ACB stock could be in the long term. With solid management in place right now, ACB stock looks like it could transform into a pot stock to watch in the next few years.
Top Canadian Marijuana Stock To Watch: Cronos Group Inc.
Cronos Group Inc. (CRON Stock Report) is another one of the Canadian majors when it comes to marijuana stocks. The company made big headlines after receiving over $1 billion from Altria Group Inc. (MO Stock Report) a while ago. Since then however, the company has had some trouble in its balance sheets. But, in the past few months, CRON stock has been showing some upward momentum. On November 2nd, shares of CRON stock shot up by as much as 13% by end of day trading.
This gain was similar to Aurora’s that happened on the same day. Year to date, CRON stock is still down by around 20% which is much less than ACB stock. But, as stated before, many believe that the potential with CRON stock is in the long term. In addition, investors should always consider that the largest marijuana stocks in the industry happen to be the most volatile. The jumps that we saw on November 2nd are completely indicative of that. So, for investors who want to see quick gains or quick losses, CRON stock may be the right call. But, those who want a long term investment, may want to wait until CRON stock drops below its current value. With this it mind, it does remain an interesting pot stock to watch.
Are Canadian Marijuana Stocks the Right Choice?
The short answer is that it is very difficult to say. As always, it comes down to the individual investor and their tolerance for volatility. But, Canadian pot stocks do present a great deal of potential opportunity. Whether or not we see this opportunity in the next few months remains to be seen. But, in the long term there’s no telling how far these marijuana stocks could go. Investors should always remember to do the proper research to discover anything they can about a given pot stock.
With that, it can be quite easy to find a marijuana stock to watch. It mostly comes down to knowing ones investing style, and the ins and outs of a given company. With so much volatility on the table, investors should make sure to watch the industry to see what happens in the near future and beyond.