Massive daily gains and an equally massive investor base have both contributed to the overwhelming bullish market sentiment for marijuana stocks over the past two years. As new stocks come into play and the normalization of the industry rises, many investors are wondering if cannabis can still be considered a bullish market.
Much of the initial bullish sentiment in the marijuana stock space came from high expectations regarding where the market could potentially go. Data continued to come out showing that valuations were extremely high and the market may hit the billions within five or so years. Not only did this help to fuel a massive influx of capital into the market, but it also meant that some valuations were slightly inflated. In addition, many investors quickly began to invest off of speculation rather than intrinsic value.
Pot stocks in the early days of cannabis saw their prices double or triple in value with some of the top gainers seeing percent changes of as much as 2000%. Now, this is, of course, was unsustainable and the past 6 months have shown highlighted that notion. Prices have undoubtedly come down to more of an equilibrium point but nevertheless, speculative trading still remains quite high.
The Canadian cannabis market is leading the fight for marijuana reform with the first nationwide recreationally legalized market of all first world countries. This makes Canada the unspoken leader for cannabis throughout the world. Canada has also fortunately created a domino effect that has been responsible for the majority of states in the U.S. legalizing weed in one form or another. Studies have shown that marijuana could potentially hit as much as $31.4 billion by 2021 according to a report from the Brightfield Group. This is a massive gain from where it currently stands at around $11 billion. The stocks that are slated to benefit the most are the ones currently at the top of the market.
The Green Organic Dutchman (TGOD) is one of these companies. TGOD is based out of Ontario, which in itself is already an interesting proposition. The Green Organic Dutchman currently has a fully funded capacity of as much as 170,000 kilograms of cannabis. This number puts them in the highest tier of growers in the marijuana stock space as long as they are able to distribute it. Distribution, however, should be no problem for them as they are working to begin operations in abroad markets such as Jamaica. The company has around 1.4 million square feet of cultivation facilities in the works across Ontario, Quebec, and Jamaica which should help them to meet the extremely high demand of the world market.
The Green Organic Dutchman presents a varied opportunity to investors as they are differed from a majority of pot growers due to their business model. TGOD is working to create the highest quality organic cannabis as their name states, which can then be sold for a premium across the aforementioned markets. With all of this exposure to the top end of the cannabis industry, The Green Organic Dutchman is a company that investors are watching to predict how bullish the market can be in the future.
Aphria (NYSE:APHA) can be considered another one of the major growers in the cannabis market. The company recently uplisted from the OTC market to the major New York Stock Exchange. This represented a huge milestone for the whole of the industry as yet another big cannabis company got the recognition it deserved. This also can be looked at as a paradigm shift in the industry as acceptance of cannabis continues to be driven up. This acceptance is one of the main factors for believing that cannabis is a bull market.
Aphria is another Canadian based producer of cannabis and ranks currently as the third largest producer as far as production capacity is concerned. Aphria is working to complete their latest expansion products known as Aphria One and Aphria Diamond. These facilities should contribute to the company hitting its overall mark of as much as 255,000 in production capacity by the beginning of next year. With so much production capacity in the works, Aphria is continuing to highlight how far the market can go in the coming years.
Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and The Green Organic Dutchman, Midam is being paid $20,000 per month for a period beginning July 30, 2018, and ending July 30, 2019. We may buy or sell additional shares of (TGODF/TGOD) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about The Green Organic Dutchman. The principles of MAPH participated in the IPO for The Green Organic Dutchman Holdings, Ltd. (TGOD) & own a collective 193,797 free trading shares & 9,725 warrants. The principals of MAPH intend to sell their positions in (TGOD) for profit. MAPH nor any of its principals have been compensated for any material related to (TGOD). As of November 13, 2018 a member of MAPH Enterprises LLC holds freely trading 231,300 shares and 150,000 warrants of The Green Organic Dutchman (TGODF) purchased in the open market. These may be sold at any point. This disclaimer will be updated at such time. Please click here for full disclaimer
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