Legal cannabis famously went into effect on, October 17th and the results are happily within the predicted range. Many investors expected more than stellar openings, but as we’ve seen before, often times the true value of these companies becomes fully realized within a few days of the big event. The launch of the recreational market signals the first time that a first world country has been able to legalize the use of cannabis on such a widespread scale, and all of the exciting news is to come.
Canada has been an exciting prospect to watch due to the massive amount of exposure to users and growers they have domestically. One research firm states that around 19% of Canadians consume cannabis in one form or another. This number is massively higher than the 4% of worldwide users which shows why Canada is the perfect hotspot for such a large legal market to go into place. By the end of 2020, some analysts have stated that the country will be seeing as much as $6.5 billion in revenue which equals around 810,000 of cannabis per year.
Currently, there exist around 120 federally licensed producers of cannabis throughout Canada, and each one seems to offer its own unique premise to the cannabis space. Several of the top companies in the space were subject to benefit the most but as stated before, often it can be difficult in the market to live up to expectations when they are so high to begin with. What also can happen and something that we are seeing right now is a slew of individuals panic selling after the big news hit the market. One of the main prospects of the cannabis market is that it is here for the long term. If there is anything that the selloff this morning can illustrate, its that the industry on cannabis may be able to slow down on the trading that it does based off of speculation. Speculation can often be a large impediment to the true value of these companies and has been plaguing the market due to the infancy of the space as a whole.
Canada, however, continues to present a large test case to the rest of the world for how well a cannabis market can go on such a large scale. The future of this industry will likely help to potentially set into motion a domino effect across the rest of the world. If the industry is able to continue its success, which many have stated it will, the hopes are that other countries will be able to see the massive amounts of benefits that legal cannabis has to the economy and the public who wish to use it. In addition, the amount of research that can be done into the substance in terms of how it can help to treat a wide range of illnesses is something that should not be overlooked in any way. Only time will tell how the market is able to stabilize in the near future, but for now things continue to look good for the whole of the legal Canadian cannabis space.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
