Three Reasons Pot Stocks are Still Soaring


 
 
10:58 08/28/2018

If you haven’t noticed, pot stocks are the new buzz on Wall Street.

Over the last few days, Canopy Growth CGC  rallied from $25 to $47.50.

Tilray Inc. TLRY  ran from $25 to nearly $60 a share.

And while we’re seeing some profit taking today, there are three key reasons traders are bullish.

Americans Support Legalization

A growing majority of Americans (61%) fully support its legalization, which has led to its decriminalization and the potential for significant cash inflows.

Canada will Legalize Marijuana on October 17, 2018

The Canadian Senate overwhelmingly passed Bill C-45, also known as the Cannabis Act, which legalized the use of recreational marijuana. The law goes into effect on October 17, 2018.

That will set off a sales boom with our neighbors to the north.

By 2021 analysts say Canada could have nearly four million recreational marijuana users, creating a monstrous $4.5 billion industry.



Corporate America is Waking up

Constellation Brands just increased its stake in Canopy Growth (CGC) by $4 billion -- part of the reason CGC exploded in recent days.

And TLRY just announced it would supply marijuana to Nova Scotia Liquor. That follows news that global alcoholic drink giant Diageo is in talks with Canadian marijuana companies about investments or alliances.

TLRY also signed an agreement with the Ontario Cannabis Store (OCS).

Those are powerful catalysts that won’t run out of steam any time soon.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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