The cannabis industry capitalizes on quarantining
The marijuana industry has shown little growth as most weed producers burn through a concerting amount of money and disappoint investors with weak sales growth. Aggressive expansion has been followed by regulatory vows to pull back to focus on profit and avoid running out of cash. With all of this said, the cannabis industry still has long term potential for growth. Though the coronavirus dares have put a halt to most companies, you should still analyze these weed stocks like any other investment. As of March, Canadian marijuana stocks went public on U.S. Stock Exchanges. These companies were Cronos Group (CRON), Canopy Growth (CGC), Tilray (TLRY), Aurora Cannabis (ACB), Aphria (APHA), CannTrust (CTST), Hexo (HEXO) and Organigram (OGI). Sundial Growers (SNDL) went public at the beginning of August. As governments set strict orders for people to stay home as much as necessary, there has been a surge in the demand for cannabis. The demand comes from what you probably could’ve guessed, making quarantine less boring. “The sector continues to be volatile, and while we contend cannabis demand will prove to be robust amid its first real test, the industry is on shaky ground with COVID-19 likely to be a crushing blow,” Stifel analyst Andrew Carter said a research note in March. While some companies have closed their stores to make extra efforts to slow down the spread of coronavirus, this industry is one of the few that are benefiting from the scares.