Marijuana Stocks: Three Key Catalysts for Further Growth

12:01 10/26/2018

For most of 2018, marijuana stocks were the hottest opportunities around.

• Canopy Growth (CGC) ran from $20 to $57

• Tilray Inc. (TLRY) ran from $20 to $300

• OrganiGram Holdings (OGRMF) ran from $3 to $6.75

• Marijuana ETF, MJ ran from $26 to more than $44

All on anticipatory momentum as we neared Canadian approval this month. However, once the news was out, related stocks began to pull back on a “sell the news” reaction.

Once an expected catalyst is out, these are to be expected.

However, don’t count out marijuana stocks so fast, though. The catalysts ahead are monumental.

One – Americans Greatly Support its Legalization

A growing majority of Americans fully support its legalization, which has led to its decriminalization and the potential for significant cash inflows. In fact, 66% of Americans now support legalizing marijuana, another new high in Gallup's trend. The latest figure marks the third consecutive year that support has increased.

Already, nine states and D.C. have legalized marijuana for recreational use.

As more states move to legalize its use, sales will skyrocket, in our opinion.

Two – Canada is Only the Start of the Boom

On October 17, 2018, marijuana became legal in Canada. But no one expected the demand to be as strong as it’s been. In fact, according to Fortune, the country can’t keep up with the pace of demand. Retail shops are nearly sold out.

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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