This German Marijuana Stock Continues to Grow Strong Despite Market Correction

This German Marijuana Stock Continues to Grow
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AMP German Cannabis Group Stock

Despite all the doom and gloom in the marijuana sector market right now, there are several bright spots where investors can see growth in their portfolios, even amidst a rather weak pot stock market.

One such company is AMP German Cannabis Group Inc (CNSX:XCX, FRA:C4T) a micro-cap marijuana stock punching far above its weight. In fact, this marijuana penny stock might be one of the better stocks right now in the ailing cannabis market.

The first thing to understand about AMP German Cannabis Group stock is that it is on a roll right now. While many pot stocks have recently seen setbacks, AMP has made significant gains over that time.

Now, to be fair, XCX stock did peak several weeks ago, and it has since seen a pretty significant fall, but it has almost doubled its price since May. Most pot companies have seen massive share-price hemorrhaging during that period.

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So what makes this stock different than the rest? A few things.

To start, it’s flying very much under the radar. This is a micro-cap marijuana stock and a marijuana penny stock that is now trading around $0.20 per share.

That’s a very cheap price compared to the juggernauts of the marijuana stock market that are firmly in the double-digits (and in some cases triple-digits).

Nevertheless, AMP German Cannabis Group stock is just getting started. This is a high-growth-potential company operating in one of the potentially hottest marijuana markets on Earth in the coming years: Germany.

Another boon in favor of XCX stock is that the company has been making solid deals, even during the pot stock market downturn.

AMP German Cannabis Group Inc recently signed a four-year, non-exclusive distribution agreement with Aphria Inc (NYSE:APHA), essentially serving as a conduit to bring Canadian marijuana to German consumers. (Source: “AMP German Cannabis Group Signs Distribution Agreement with CC Pharma, a Wholly Owned Subsidiary of Aphria and a Leading Pharmaceutical and Medical Cannabis Distributer in Germany,” Cision, October 15, 2019.)

AMP German Cannabis Group stock shot up as a result, gaining by nearly 20% after the deal’s announcement.

Aphria, through its subsidiary CC Pharma GmbH, is a leading distributor of pharmaceutical products to more than 13,000 pharmacies in Germany.

The agreement provides for monthly shipments of imported medical cannabis products, starting in mid-2020 upon AMP fulfilling the contract’s preconditions, including receiving a narcotic licence to import and distribute cannabis in Germany.

And that’s not all for AMP; the company already has two supply contracts and is in discussions with several Canadian producers about cannabis for importing into Germany.

The company is leveraging the expanding legal marijuana industry in Canada to provide top-tier products to German consumers, benefiting all parties involved.

It’s a savvy move that will likely see XCX stock continue to rise, and I’ll be watching the company very closely from here on in.

Since the deal was signed, AMP German Cannabis Group has registered about a 15% increase to its share price.

German Marijuana Stocks

While AMP German Cannabis Group Inc has a lot going for it, one of the biggest boons for the company is its country of origin: Germany.

Germany is the largest economy in the European Union, and could potentially be the first major market to legalize marijuana nationally (if the U.S. doesn’t get there first).

Germany has millions upon millions of consumers with a lot of money to spend on marijuana. When that market is eventually legalized, German marijuana stocks will soar and I predict we’ll see a buying frenzy from large pot companies looking to get in on the action.

Which is to say that investing early in the German marijuana market with the long game in mind could pay off with huge returns for investors.

The German marijuana market is the most exciting pot market aside from the U.S. one, and when you consider that the EU may wholesale legalize the drug (possible, but unlikely), you could have the most monumental shift in the marijuana paradigm take place, with Germany being the crown jewel.

German marijuana stocks, therefore, are very exciting as long-term investments right now. Of course, the question of how long we’ll have to wait to see the potentially big returns is still up in the air.

While marijuana legalization is making progress every day, the U.S. is closer to  legalization than is Germany. Furthermore, U.S. marijuana legalization would be better for the industry, but it would somewhat dampen the long-term potential of German marijuana stocks.

Even then, I anticipate that the German stocks could end up providing huge gains to investors who are willing to wait.

Analyst Take

The marijuana stock market is in a state of disarray, at least at the moment. While I’m very confident that a recovery lies in the not-too-distant future, right now it’s hard to score sustainable long-term growth from pot stocks.

But that isn’t necessarily true for German marijuana stocks. While still susceptible to the market pullback, ultimately these stocks have a very good chance of being big winners for investors when marijuana legalization spreads across the EU.

That could be a few years off, but if the transition to a legal marijuana market in Europe is smooth, the stock gains could be well worth the wait.