Are Investors Making Money Off These Marijuana Stocks?
With better cannabis legislation it’s possible to see an increase in trading for marijuana stocks. Currently, in the cannabis industry, there is much anticipation about what’s next to come with federal cannabis reform. Some people will it will cause a rally in trading before dropping as things become more regulated. The reason for this is as things become legal investors feel it will be like any other regulated industry which levels out at some point.
That’s part of the reason many people are looking for the best marijuana stocks they can find. This has also led to investors trading off speculation which has led to both drops and increases in the market. Pot stocks trade in a volatile market which means the price of a stock can change rather quickly. Because of how volatile cannabis stocks it may play in your favor if you understand the market. Meaning some traders fear when a stock drops.
This is because they are down or scared to invest with the idea that the stock will recover. The investing strategy most cannabis stock investors have been seeing the most gains from is buying off the dip. This is the other advantage of understanding the market and using volatility to your advantage. Yet this comes with a lot of time and effort. With marijuana being a popular investment topic some think it’s easy to do.
Well, it’s not as simple as that you must do your research on the marijuana companies you wish to invest in. As well as get familiar with how the sector is performing and which marijuana stock has been performing the best. Overall there has been a lot of progress for the cannabis sector. So as things continue to move forward this year looks promising for marijuana stocks.
Marijuana Stocks To Watch In 2021
TILT Holdings Inc.
TILT Holdings Inc. has been one of the handfuls of marijuana stocks that have been able to recover in trading throughout the last year. For example, back at the start of 2020 TLLTF stock was trading at better levels shortly after the crash in March. If you fast forward to now which is about a year later and TLLTF stock has increased in trading by 404 percent. Even with the company being quite volatile TLLTF stock has made some investors subtle returns on their investment.
The thing is there is no such thing as a safe investment even with all the due diligence in the world risk is always a factor. This is why with a marijuana stock like TILT Holdings some investors may see it as too volatile to take a chance. However, that doesn’t take away from other investors who are willing to take that risk to potentially see if gains can be made. Back in 2019, the company was working to finalize a deal to purchase Standard Farms Ohio LLC. In recent news TILT Holdings has announced that the deal is finally complete.
“With the expansion of the Standard Farms footprint into Ohio, we continue to execute on our strategy of delivering a differentiated portfolio of premium products and supply chain solutions to multi-state providers, licensed producers and cannabis retailers, as well as opening up another dynamic marketplace to our brand partners,” said Gary Santo, President of TILT.
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Organi Gram Holdings Inc.
Organi Gram Holdings Inc. has been another incredibly volatile marijuana stock. Back in 2019 OGI stock had a much better overall market performance. Even though most of 2019 was a big downtrend for OGI stock. When 2020 started it was the same pattern of trading down. Furthermore because of how volatile the market is subtle spikes in trading did occur.
In the midst of all this price fluctuation, these small upticks allowed for short-term gains to be made. Now the company has had issues with gettings its business and financials in order. This may have contributed to OGI stock having a long and intense downward trading pattern. When the start of 2021 was arriving the company started to pick up in trading at the end of January. At the start of 2021 most marijuana stocks were able to see large increases in momentum which led to better trading.
For OGI stock the first month of 2021 was a bit slow to pick up any momentum. Yet overall for the month, the company reached gains of 25 percent which set off better trading in the following month. In February OGI stock was able to start to rise in trading going on a much-needed run in the first 2 weeks. From February 1st to the 10th OGI stock caught an uptick in trading where the company saw gains of 229 percent.
This upward push was great for investors who were able to sell shares they been holding on to. Currently in March of 2021 OGI stock has been able to sustain a fair market position. If the company can keep at this market level while catching more momentum it may set them up for better trading in the following month.