For investors, the cannabis roller-coaster may just be getting started – Financial Post

The historic Senate vote passing legislation to legalize recreational marijuana sent Canada’s biggest cannabis stocks on a roller-coaster ride Wednesday, with many surging at the open before falling back and then rallying to end the day.

For example, Canopy Growth Corp., Canada’s largest producer, jumped 5.3 per cent on the early euphoria, then fell 5.9 per cent within two hours, before climbing back to end the day up 6.7 per cent. Shares of Aurora Cannabis Inc. (up 4.7 per cent), MedReleaf Corp. (3.5 per cent) and Aphria Inc. (4.2 per cent) followed a similar pattern.

Valuations have crashed and boomed over the past year as cannabis companies struggled to find equilibrium. Even on a day-to-day basis, shares have been dangerously volatile.

But while legalization may mean they are not as speculative as they were even a few days ago, analysts warn that investors looking to get into the game should be screening for key traits.

Analyst Jason Zandberg at PI Financial says investors need to be exceedingly careful in this kind of market. He believes the number of producers

Read More Here...

This entry was posted in Vaporizer E-Cigarette Stocks News. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Trackbacks are closed, but you can post a comment.

Leave a Reply

Your email address will not be published. Required fields are marked *

Your email address will never be published.