Marijuana Stocks on the NASDAQ
It’s been a busy—and, might I add, great—week for marijuana stocks. It appears that the marijuana slump is over and that we’re seeing a resurgence across the industry with strong gains over the past five days or so. In this marijuana stocks review and forecast, we’ll go over why these stocks are surging and two marijuana stock highlights I have for the month.
The first major news of note is that Cronos Group Inc (NASDAQ:CRON, CVE:MJN) became the first Canadian marijuana stock to be listed on the NASDAQ. The result was that the company enjoyed a healthy boost to its stock value following the move, jumping by over 30% in the aftermath.
As I wrote before, this is major news not only for CRON stock, but also for the marijuana industry in general. Gaining a spot on the NASDAQ lends legitimacy to a company.
What’s more, being the only company in a hot industry to be listed on the NASDAQ makes a company an immediate target for investors who were unwilling to ship their capital north on Canadian exchanges or buy over-the-counter stocks.
Cronos, therefore, was one of the first companies to emerge from the marijuana slump that had plagued the industry since mid-January.
But it is also not the only company eyeing a place on the NASDAQ. Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED) made news with WEED stock reportedly looking to find its own way into a NASDAQ listing.
This would be a huge deal, and likely far surpass the surge we saw at Cronos. Canopy Growth is, after all, the biggest player in the industry by market cap. Its entrance onto the NASDAQ exchange would likely spur on a huge surge of investors eager to buy into the largest marijuana player, now featured on one of the most reputable exchanges in the world.
The move would also likely put a damper on Cronos stock growth, seeing as how some of that capital that the company is enjoying would be diverted to Canopy.
In any case, March’s marijuana stocks review shows that the next major play in the industry may be toward the NASDAQ. Should companies prove successful in gaining a spot on the exchange, expect big fits of growth to follow.
The End of the Marijuana Slump
The most important thing to happen in March so far, however, is that the marijuana slump seems to have finally died.
The industry experienced a large correction after massive and rapid growth in late 2017 and early 2018. The meteoric jump led to a drawback in order to compensate for what the market felt might be overvaluations.
But with that correction having come in and done its damage, it seems that investors are once more looking to buy back into the marijuana market.
We’ve seen many companies surge by as much as 20% or 30% over the past week in what has certainly put a smile on marijuana bulls’ faces. Canopy Growth, for instance, was the beneficiary of a 24% jump.
If the marijuana slump has indeed ended, then the marijuana stock forecast for March looks bright, as investors will once again want to ride the next high.
The marijuana market is rarely, if ever, dull, but this week was exceptionally exciting, especially if you’re bullish on the market.
Between the strong gains seen across the industry and moves being made towards the NASDAQ, March is shaping up to be a strong month for marijuana stocks.