In the current cannabis industry, it is difficult to tell which marijuana stocks are worth watching and which aren’t. This difficulty stems from two main factors. The first and most obvious one is the effects of the coronavirus. Although the year started out filled with potential, very quickly things went south. Because of this, many investors began to lose confidence in the leading pot stocks.
But, a few months after, we find ourselves as a tipping point in this pandemic. Although the majority of the past few weeks have been filled with bearish sentiment, the past week or so has shifted that notion. We have begun to witness many leading cannabis stocks show bullish gains. Although it doesn’t make sense to expect these bullish gains to continue forever, it does show that we may be seeing some more stability in the industry.
The other factor that is shifting the market downward stems from inherent issues in the cannabis market. Issues such as the increasing size of the black market and high taxes have shifted how pot stocks function in an industry where the legislation does not support it. But, as we move forward it seems as though the market is shifting toward the future. The hopes are that this shift can alter the future of the cannabis market for the better.
A Downtrodden Marijuana Stock With New Bullish Sentiment
Canopy Growth Corp. (CGC Stock Report) is one of the most popular cannabis stocks to watch during the coronavirus pandemic. In the past 20 days, the company has shot up by more than 30%. This has begun to shed new light on the company, and one that could potentially stand into the foreseeable future. When a large amount of volatility hit last year, Canopy dropped by millions in market value. Now, however, the company trades at around $17 which is very low compared to its potential future value.
The company is the largest producer of marijuana in the world which is why it has received so much attention. In addition to its own large production, Canopy has been working to finish the acquisition of Acreage Holdings, one of the largest multi-state operators in the country. If this is able to occur it would give Canopy a massive benefit in the U.S. market that other cannabis stocks could not match. Of course, we have to remember that the company is quite volatile. Because of this, it simply remains a marijuana stock to watch.
A Vertically Integrated Cannabis Stock With Ties to Nevada
Planet 13 Holdings Inc. (PLNHF Stock Report) is quite a popular marijuana stock in the industry due to how niche its market is. The company made headlines after creating the largest dispensary in the world, appropriately known as the SuperStore. This location is based right off of the Las Vegas Strip where it receives a large amount of visitors. The company has continued to show promise for the future as it opens new locations in California with more in the works.
The company recently announced that it has been working to continue pushing its line of products such as Leaf and Vine, Medizin, and more. With these, it has worked to appeal to the tourism market in its home state of Nevada. During February when most other marijuana stocks reported losses, Planet 13 posted gains of around 6%. The hopes are that it can continue to keep these gains up moving forward. It does look like the company could run into some trouble due to the coronavirus’s effect on tourism in Las Vegas. But, it does look like this is a short term issue that we can only hope to get out of soon.
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