Canopy Growth in Canada helped send cannabis stocks into a positive surge a few weeks back with their news of moving into the American market. They struck a deal with lawmakers in New York securing the proper licensing allowing them to produce and process hemp in the state of New York. Everyone knows the stock market is like a rollercoaster ride with ups and downs, loopy loops, and sudden stops. The cannabis industry is no different. This newly budding industry is growing like a weed, and the stocks that are associated with it typically do the same. Recently the three-week winning streak of cannabis stocks came to a slight halt.
Don’t Expect This to Become a Trend
Don’t expect this to last long because predictions by groups like BDS Analytics and Arcview Market Research say that the US will spend around 22.2 billion dollars a year on legal cannabis by the year 2022. In comparison, Canada is expected to spend about 5.9 billion. There is a ginormous difference in $5.9 billion and $22.2 billion. Some find this hard to believe if you know Canada’s cannabis market.
What the Experts are Saying
Capital Analysts in Canada such as Graeme Kreindler of Eight Capital say that daily recreational sales in Canada have decreased by 42% month to month. In late December, Green Growth suggested it may put an offer on the table for Aphria. They estimated them to be worth around $2.8 billion. Apparently, they were unaware that Aphria has all kinds of deals going on currently. While the cannabis stock market is sure to maintain the status of being a roller coaster ride, that’s the life of any good stock. Once a stock sits stable, it often is no longer a hot commodity. Perhaps that’s why so many investors are dabbing around with the hot cannabis stocks these days.