The Cannabis Stocks have over last couple of months been on a massive tear. First and foremost this has been due to legalization of Marijuana in Canada, but also the general sentiment that legislation will become less stringent around the world, with US being the main market.
Recently various investments from consumer companies into Cannabis companies has made the frenzy even stronger.
The Brewing Company Constellation Brands (STZ) invested roughly $4bn stake into Canopy Growth (CGC / WEED TO). Other beverage companies such as Heineken (HEINY) and Molson Coors (TAP) have also invested in to various developments Cannabis infused products. BNN Bloomberg reported that Diageo (DEO) has been in talks for m&a/investments in various Cannabis companies (link).
As various consumer and beverage brands feel pressure on their growth, with the legalization of Cannabis, which would take another dent on alcohol sales, they are all looking to expand in the space in order to not miss the train.
All of this has led to massive bull-runs in various Cannabis stocks recently. Even within the sector the m&a is picking up. Aurora Cannabis (ACB TO) acquired fellow Canadian Cannabis Company Medreleaf (LEAF TO) for over $2.5bn.
Surprisingly big Tobacco have been fairly absent from this m&a bonanza. Companies such as Altria or Philip Morris have recently been suffering as cigarette volumes have been declining for a while now. Bloomberg reports today (link) that;
It’s only a matter of time before the tobacco giants get in on this, and when
they do other players will need to watch out. But for now, it’s moves like
Constellation’s that are lighting up the market.
On top of the general consumer Cannabis space in North America, additional growth is poised to come from legalization worldwide in both consumer and medical use.
Germany is currently on its way to become world’s biggest medical Marijuana market and is a gateway to all of Europe. In addition, medical marijuana is covered by the health insurance system in Germany – which makes it potentially a very profitable market.
Even though various Cannabis stocks have rallied substantially recently, it is good keep them on the radar, as Cannabis space is one of the few sectors in the consumer and medical space which substantial growth potential exists. Below is a list of most prominent Cannabis companies to keep on your radar.
Furthermore, as these stocks are very volatile, as a trader/investor one could invest/trade them through various options strategies. You can find info about option strategies at our site here
List of Cannabis Stocks
Canopy Growth (CGC / WEED TO)
Aurora Cannabis (ACB TO)
GW Pharmaceuticals (GWPH)
Aphria (APH TO)
CannTrust Holdings (TRST TO):
Tilray (TLRY)
Cronos Group (CRON)
Scotts Miracle-Group (SMG)
Cannimed (CMED TO)
Maricann (MARI CN)
Hydropothecary Corporation (HEXO TO)
Nuverra (NES)
