Aurora, Canopy Stock Get a Required Boost with Sweden’s Marijuana Interest
Canada Marijuana Stocks Find a Home in Sweden
Two of the top 10 most-traded shares in Sweden in January 2018 were Canada marijuana stocks, adding further proof that the marijuana market is growing more global with each passing day.
“Out of nowhere, the interest for Canadian cannabis shares has completely exploded in Sweden,” said Joakim Bornold from Nordnet AB, an online broker bank. “That’s where the money is, if there’s a will to continue legalizing markets.” (“Canadian cannabis stocks are latest fad for Swedish investors,” Toronto Star, February 5, 2018.)
Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED) and Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) were both among the most-traded shares on Nordnet in January.
But Sweden’s “reefer madness” is by no means unique to the Scandinavian country; across the world, we’re seeing a flurry of interest in the red-hot marijuana market. Both the Canopy stock price and the Aurora stock price shot up to all-time highs in January, alongside the rest of the market.
While mid-January saw the two companies’ share prices plummet, that hardly lasted long. Both companies are now well on their way to reaching and surpassing their January highs.
TWMJF stock jumped by about 2.5%, while ACBFF stock climbed one percent by early afternoon on Wednesday. The market more broadly has been in the midst of a rally ever since the start of the week, with the January slump apparently over and more gains to come.
The Sweden marijuana investment news is important, however, not because Swedish investors are getting in on the game (after all, Sweden is a relatively small country and market), but because what it represents for the marijuana industry overall.
As more countries seek to legalize cannabis—or at the very least reduce the severity of their drug laws—marijuana as a product will continue to find homes in nations around the world. And with those countries opening up to weed, we’re going to see sales naturally jump and take marijuana stock prices with it.
When you invest in marijuana stocks—specifically Canada marijuana stocks— you’re not only getting solid companies that are about to have their product federally legalized for the first time in the western world, you’re getting companies that have the potential to dominate the industry internationally for years to come.
While other countries and their marijuana startups will have to contend with the slow process of legalization for years (maybe decades), Canada marijuana stocks will have already-established foundations, expertise, and trusted names in the industry. That means they’ll likely be involved in the mix when other countries look to legalize cannabis, and this gives them a dominant market position for the foreseeable future.
That Canada marijuana stocks are big in Sweden is not the most important bit of news here. It’s that Canadian companies like Canopy and Aurora continue to maintain a global vision that is going to serve them well in the years to come. For that reason, I believe that both of these stocks are going to be solid earners in both the near and long terms.