Cannabis stocks 2021 – big surge in cannabis share prices
I wanted to chat about cannabis stocks for 2021 and the tremendous run lately. Sundial Growers stock has jumped from a 52 week low of $0.14 to now a 52 week high of $3.04, making new highs, pardon the pun, every day. I personally hold Fire and Flower Corp, a Canadian retail cannabis brand that has grown their footprint extensively over the last year, including signing up a partnership with the ownership group of Circle K brand of convenient stores. I bought the stock at $0.52 last year, sold at close to a $1.00 and rebought at $0.80. It has now jumped to $1.32 over the course of this week. Of course with Cannabis stocks soaring, so have the Cannabis ETFs which over the last few years have underperformed in their space. AdvisorShares Pure Cannabis ETF hit a 52-week high of $31.87, jumping from their low of $10 back in November. Another crazy stock in Canada is WeedMD, they jumped from a low of $0.33 last Thursday to hit a high today of $0.93.
Throughout the election campaign, the democrats have promised to push for decriminalization of marijuana at the federal level. Investors have been hopeful ever since with the outlook that such measures would stand a better chance of moving forward. The potential for growth stemming from opening up the U.S. market is huge compared to Canada, and although decriminalization wouldn’t instantaneously mean that Americans in all 50 states would be able to buy cannabis products, it would remove a major impediment to the growing trend toward legalization in many states.
In Canada we lived through the cannabis hype a couple years back but the companies have matured and are making moves to do it properly this time around. There are a crop of new producers coming through the licensing channels in Canada run by people who know cannabis and who know what strains to grow and how to grow those strains in our environment. From that standpoint, if and when the US government lifts the ban on cannabis, you will see many of these companies positioned perfectly to meet the needs of the giant American market.
#wmd #sndl #faf