Summary
Near term, national recreational legalization could be a catalyst for Canadian cannabis stocks in 2018.
Many Canadian “F” stocks are seeing some of their largest gains this year.
For US investors, Canadian marijuana stocks may offer more opportunity while the US tries to figure out which path it wants to take for national legalization.
When it comes to the growing list of marijuana stocks, investors can research an array of public companies, but the events that have recently transpired could suggest that Canadian cannabis companies in particular could be setting up for a big year ahead.
Constellation Brands (STZ) has opened up a Pandora’s box of sorts for many investors who have simply been sitting on the sidelines. The reason has everything to do with their investment into Canopy Growth (OTCPK:TWMJF), a Canada-based company that holds core brands across a multitude of subsectors within the cannabis marketplace.
Though it was a 9.9% interest in the company, the action alone speaks volumes to the further acceptance of cannabis becoming a viable industry of scale. In fact, according to a report from New Frontier Data, it’s already expected that by 2020 the legal cannabis market will create more than a 250,000 jobs in the U.S. alone. Based on further reports from Arcview, North America’s legal cannabis industry should continue to grow at a 27% compounded annual growth rate to $22.6 billion by 2021.
credit:seekingalpha.com
