The cannabis industry has shown a massive amount of potential over the past several years, and investors are only now realizing the growth that can come of it. The beginning of the year represented a challenge for the whole of the cannabis market as a large amount of news regarding legislation came to light. Because of this, many stocks responded in the speculative fashion that we are accustomed to. Since then, the market has grown tremendously and looks to continue with this growth in the near future.
The market in the U.S. and Canada has shown that there is a $25 billion prediction for the whole of the industry by the end of the next five year period. Analysts have stated this over the current amount of $8 billion that the market is at. The U.S. marijuana index has also been moving up quite dramatically at around 27% for this year, which compared to the S&P 500’s 28%, is quite positive.
The industry has seen a large amount of companies grow substantially in price and value over the course of the past year or so. One of the largest gainers in the industry has been General Cannabis (OTCMKTS:CANN). This stock has seen itself rise in price by over 180% in the past six months with around 96% of this growth occurring in the last month or so. The company works by investing quite aggressively in the markets across the U.S. such as California and Nevada, which have been extremely lucrative. Michael Feinsod, the chairman of General Cannabis stated that “I am excited as we enter mid-2018 well capitalized and ready to take advantage of not only the organic growth in the cannabis industry, but also an increasing number of acquisition opportunities.”
Next on the list is the company known as CV Sciences (OTCQB:CVSI). This company is the second largest gainer in the whole of the marijuana industry within the U.s. last month. The stock managed to grow by as much as 60% in the past month or so, with their six-month numbers at around 350%. The stock is currently trading at around $1 a share. The company also has a market cap of almost $100 million, which makes them one of the larger players in the industry that is working to grow quit largely.
Last on the list should come as no surprise as it is Aurora Cannabis and Canopy Growth. These companies have been leading the fight for marijuana use and are looking to only grow as the Canadian market works to legalize cannabis nationwide in the next coming months. Aurora also recently acquired the large marijuana producer and competitor of theirs, MedReleaf. This deal was the largest in the history of the cannabis market, and looks as though it will cement Aurora as the largest producer of raw cannabis in the world.
The market on cannabis is still very much in its infant stages which means that there is a large amount of room to grow in the coming years. The next five to ten year period will be extremely instrumental in seeing the development of the cannabis market as a worldwide industry. With companies working to partner up to grow the space entirely, it looks as though the cannabis market is just beginning. The hopes are high that the companies like the ones mentioned above, will continue to improve the space wholly and with partnerships. With legalization on the forefront, the marijuana industry is one to watch in the coming years.
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