This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
What are marijuana stocks?
Marijuana stocks are shares of the companies involved in growing, developing and supplying cannabis for medical and recreational use. The industry is split into three broad sections:
- Growers are the companies that cultivate, sell and distribute cannabis
- Biotechs are the firms dedicated to developing and bringing pharmaceutical marijuana to market
- Supply providers are those who provide the tools and materials needed to physically grow marijuana – such as light systems and fertilisers
Why is there increased interest in marijuana stocks?
The movement toward the legalisation of marijuana in the United States (US) and Canada has increased the interest surrounding companies in all three sections of the cannabis industry.
For instance, 29 states across the US now allow the use of the controversial plant for medicinal purposes – nine of these states have also legalised cannabis for recreational purposes. And on 17 October 2018, Canada legalised retail cannabis, which had a positive impact on stocks across the board.
By trading marijuana stocks with derivative products, such as CFDs and spread bets, traders have the opportunity to capitalise on marijuana stocks that are both rising and falling in value.
Top marijuana stocks to watch
As a result of the increased media and market interest in cannabis stocks, they have experienced significant growth over the past few years. So, we’ve taken a look at five of the most talked about marijuana stocks to watch.
- Canopy Growth Corp (CGC)
- Cronos Group (CRON)
- Aurora Cannabis (ACB)
- Tilray (TLRY)
- HEXO Corp (HEXO)
1. Canopy Growth Corp (CGC)
Canopy Growth Corp (CGC) is a cannabis company based in Ontario, Canada, which boasts 5.6 million square feet of production capabilities. The company was the first regulated and publicly traded cannabis producer in North America, which listed on the Toronto Stock Exchange (TSX) under the ticker WEED.
It later began trading on the New York Stock Exchange (NYSE) in May 2018, under CGC, and by late September it was the world’s largest cannabis company based on its market capitalisation of $11.5 billion. This followed a major deal in which Constellation Brands (STZ) – owner of Corona and other alcoholic beverage brands – invested $4 billion into CGC for a 38% stake in the company.
Shares of Canopy Growth reached an intraday high of $59.22 in October 2018, an increase of 54.5% from its $30.85 debut on the NYSE.
.jpg)
