The Infancy of the Cannabis Market Makes Investing Interesting


The cannabis market has been around in its current state for only a few years if not less. This infancy has meant that many stocks have seen a large amount of volatility that otherwise would not be around. Many stocks in the industry have been able to benefit off of this volatility, but it has produced a large amount of interest as a whole.

One of the companies that has continued to benefit off of this volatility has been Canopy Growth Corp. (NYSE:CGC). Canopy has been at the forefront of the cannabis industry for some time as one of the large Canadian players throughout the market. The company recently released a fourth =quarter report with a 95% increase year over year. This type of growth is something that may be normal in the cannabis market, but it is quite large for any other market.

The company has been working alongside many others to begin exporting cannabis to various countries around the world. This has become quite familiar throughout the industry as more and more companies begin to produce large amounts of cannabis. The company has been working to export their product around South America in particular, but these expansion plans have solely been dependent on legislation in the areas. Canopy recently announced their plans to acquire Hiku Brands, which will likely help to bring investor confidence into the brand. The hopes are that by the time recreational sales begin in the end of September, Canopy will be all ready to begin producing large amounts of the substance.

The company Tilray has become one of the companies that has remained on investors minds for some time now (NASDAQ: TLRY). The company is noted to be the first cannabis grower to complete an IPO on a U.S. stock exchange which means that they have a large amount of potential growth coming in the future. This listing on such a prestigious exchange has helped to bring with it a large amount of investor confidence into the space. Tilray recently opened last week with an almost 20% jump during the day, with shares trading over $20 by the end of the week. This obviously could be attributed to a large amount of speculative trading, but it does present a solid case for growth in the near future.

The market has for some time been plagued by the legislative factors not being able to catch up to the industries growth. One company that has worked with this has been MedMen (CSE: MMEN). MedMen has seen some backlash lately after investors discovered the company takes their employees tips, but besides this, they have seen a lot of positivity as one of the larger growers in the space. The company has goals to be the 7/11 of weed and has moved forward quite quickly with this goal. The company currently has assets in as many as four states throughout the U.S. with plans to move into even more markets in the near future. The Californian company has presented a solid example to how to grow in a tight legislative market as of now.

The weed market is as mentioned before, still very much in its infant stages. As we move across the next few years, it will be extremely interesting to see where the market can go amidst stringent legislation and the changing public perception. The hopes are high that the coming future will be extremely interesting for the rest of the cannabis market as growth continues to be the driving mission for all.


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