Canadian Marijuana Stocks Go Global
The true winners in the marijuana industry are going to the companies that are able to capitalize on the global market for weed. That’s because the product is very much in demand internationally, regardless of the state of legalization. That holds especially true for Canadian marijuana stocks, because it’s easy to get lost in the luster of the upcoming legislation that will legalize recreational pot across the country. But companies that are able to look past that and see the true global potential of pot are going to be the stocks you want to hold long-term.
And that’s good news for Canadian marijuana stock investors.
A recent article in the National Post outlined all the ways that Canadian bud is spreading across the globe, and is well worth a read. (“Canada’s marijuana heavyweights set sights on the ultimate prize: Conquering the world,” National Post, February 9, 2018.)
From Jamaica to Germany, Canadian cannabis is becoming an international star, and that’s great news for the stock value of the bigger players in the market.
Consider that Prohibition Partners, a U.K.-based cannabis industry consultancy, forecasts a European medical marijuana market that will reap about EUR$35.7 billion in five years. A recreational market would boost that figure to EUR$56.0 billion.
There are people hungry for this product across the world. Companies that are able to position themselves to service these needs are going to be huge beneficiaries in the long-term marijuana game.
Best International Marijuana Stocks
With that in mind, let’s look at marijuana stocks that have committed to the global mindset and therefore are poised to be solid stocks for years to come.
The first is one that we mention often: Canopy Growth Corp (OTC:TWMJF).
Canopy stock is a valuable pick if you’re looking for one of the best international marijuana stocks due to its market cap, stability, and increasingly global focus.
Canopy is currently constructing eight greenhouses in Jamaica. Eventually, that facility is expected to produce more than 6,000 kilograms of cannabis a year for the island nation, as well as its neighbors.
The company also maintains operations in Germany, Denmark, and a variety of other nations.
Another strong Canadian marijuana stock making moves on the world stage is Aurora Cannabis Inc (OTC:ACBFF)
Aurora recently became the first company to obtain a license to become the first and only international pot manufacturer permitted to sell in Italy. (“Alberta medical marijuana supplier expands sales to Italy,” CBC, January 19, 2018.)
These types of first-mover deals are exactly what you want to be on the lookout for as an investor. It provides the company with a whole new avenue of sales, as well as an established foothold in a market that will likely only expand.
For instance, since Aurora has landed in Italy and will provide marijuana products to the country, it will naturally develop relationships with distributors, government officials, local businesses, etc.
Why is that important? Because when marijuana does eventually become legal in Italy (I suppose I should say “if,” but at this point, legal pot seems an inevitability in most every developed western nation), they will have a huge competitive advantage by virtue of having those foundations in place.
For Canadian marijuana stocks to truly reach their potential, they have to tap into the wealth of cannabis consumers that exist. That means expanding beyond the large but relatively lightly populated borders of Canada.
Companies like Canopy Growth and Aurora are doing exactly that, and that’s why I view them as not only some of the best Canadian marijuana stocks, but some of the best international marijuana stocks. It’s an important distinction, and one that I believe separates long-term stock viability from short-term.