January has already been quite the month for marijuana stocks. In only the past few weeks, we have seen many of the top pot stocks in the industry climb substantially. While there are a few theories as to why this has occurred, it seems as though nothing is concrete at this point in time.
The best guess for the introduction of bulls in the latest few trading sessions comes from more of a psychological perspective than anything else. With the new year underway, the sentiment being shared in the cannabis industry seems to be one of the clean slate. One may think that pot stocks are not an industry that is traded off of psychological factors, but this appears to be the case here. While looking for other reasons as to why pot stocks may have climbed so much, there appears to be none.
But, this is great news for investors, right? The short answer is yes. One of the things of those who look for marijuana stocks to buy have been waiting for is some stability to enter into the industry. With so much trading being done off of speculation, it is about time that we see a clean slate come by to wipe everything anew. Moving into the rest of the year, it seems as though we could see more instability in the industry, but hopefully, this will not be the case.
A Non-Traditional Marijuana Stock to Watch
Constellation Brands (STZ Stock Report) is one of the largest investors in the cannabis industry in the past year or so. The company famously took a large 37% stake in Canopy Growth, which totaled several billion dollars. The goal of this deal was to take advantage of the shifting cannabis-infused beverage market. But, we have not seen a large amount of these products enter the market at the current point in time.
Much of this has to deal with Canopy Growth and its instability in terms of using its extreme capital. The company has sunk a large amount of its cash flow into acquisitions which has not made investors too happy. Moving forward though, it seems as though Constellation Brands has an interesting exposure to the cannabis industry.
A Big Name Marijuana Stock With a Questionable Future
Aurora Cannabis (ACB Stock Report) is one of the largest marijuana stocks in the industry. The company is also one of the most widely held pot stocks on several different trading platforms. But, with the company showing that it has a massive amount of debt obligations, many investors are wary about the company’s future.
In addition to this, Aurora Cannabis’s stock has plummeted by around 80% over the course of the past year or so. With that in mind, it could be viewed as a value company at the current price. But, on the other hand, it seems as though Aurora Cannabis may just be a pot stock to wait on to see what happens throughout this new year.