The Drug Trade
For a long while, Australian and US investors had little choice when it came to buying pot stocks on the US exchanges. However, in the past 12 months, this landscape has changed dramatically. With the world's largest weed stocks now listed in the US, we'll be following trading trends each month in this blog. We've asked our favourite online trading platform Stake, to send through the numbers that are moving the marijuana stocks listed on the NYSE and NASDAQ.
The Ides of March
March has been a hot month for US stocks and some of Wall Street's weed stocks have been at the top of the wave. Headlined by Aurora Cannabis Inc and Hexo Corp
Top 5 Pot Stocks for March (by monthly performance):
- Aurora Cannabis Inc (+20.3%)
- Hexo Corp (+14.46%)
- Cara Therapeutics Inc (+10.92%)
- Corbus Pharmaceuticals Holdings Inc (+10.16%)
- Innovative Industrial Properties Inc (+8.49%)
CTST | The new old kid on the block
CannTrust Holdings, which was previously only listed in Toronto, recently listed on the NYSE. The company, which researches, develops, and sells medical cannabis products – has complete control over its whole production chain! As regulations loosen and studies are showing more and more benefits, the company has rocketed up over 400% since its initial IPO on the Toronto Stock Exchange 18 months ago. As one of the new kids on Wall St, it's definitely one to keep an eye on.
Other stocks making headlines
CTST has clearly been blazing it up but wait until you see the returns of these dope stocks in the last 12 months.
- Tilray (TLRY) +194.51% year
- Cronos (CRON) +179.94%
- Canopy (CGC) +62.20%
- Cara (CARA) +54.28%
- Aurora (ACB) +21.46%
Chopping it up…and putting it back into one
Can't decide which you like most? There's an ETF for that. ETFMG Alternate Harvest ETF (MJ) bundles many of the stocks above plus many more to track the marijuana industry's gains.
Recent inclusion on the NYSE makes the fund even more accessible to everyone…you can quite literally have a stake in them all. This ETF is one of the most popular with Stake investors, finishing the month of March as one of the top three traded ETFs.
Gen Y's in the Capital
We've broken down recent trading data on Stake and it's the Gen Ys. Those between 25 and 34 are making gains and the most likely to invest in marijuana names. Although there is still interest across the other age groups, with the average age of a pot stock trader being 41 years old.
Where are they from? There's a distinct location that stands out…the ACT (Australia's Capital Territory) which has had some of the most progressive regulation on marijuana in Australia, which has the highest proportion of the Stake investors taking up the pot names.
The Month Ahead
We expect to see some big numbers coming from Trulieve when they report on the 30th of April. A monster previous quarter, generating USD $28.3 million (Year on Year growth of 739%), they are considered one of the premier US Multi-State Operators. In addition, we are going to see earnings from Cresco Labs, who just gained approval to operate in the US's latest recreational State – Michigan. They will be hoping to smash their $12.7 million from the previous quarter (which in itself represented a 334% Year on Year growth).
We will also be watching closely the developments related to the SAFE Banking Act, that could provide the framework for better banking conditions for businesses operating in medicinal and/or recreationally legalised States.
April also sees the highly-anticipated launch of brick and mortar retail stores in Ontario, Canada's largest Province by population. Ontario was the only state to launch legalisation on October 17th last year, without any retail stores, with cannabis only being able to be bought online, through the Ontario Cannabis Store (OCS).
Ontario initially decided that when launched, retail stores would be government owned and operated. Then they decided to allow private companies to run retail and allowed each private company to operate up to 75 stores (licenses).
Following a massive shortage of cannabis in the days and weeks that followed from Day One, Ontario then decided to severely restrict the number of stores, deciding to allow only 25 licenses, which were to be awarded via a lottery. And the Canadian Licensed Producers (LP) were restricted to owning only one store.
This was a massive blow for the cashed-up LP's and the retail-centric companies looking to launch in Ontario. 25 lottery winners were chosen from more than 11,000 entries. Most of these license holders have subsequently gone on to do deals to initially partner with, and then sell to – producers and retailers looking to gain a foothold in Ontario.
The retail stores must be open on the 1st of April (less than 90 days after they were awarded their licenses) and severe cash penalties follow if this and other dates are additionally missed. While we are excited about the launch, we expect it to be another stain on the Canadian recreational rollout plan. We'll keep you updated.
And finally, we have to mention the most important date on the cannabis calendar. April the 20th is 420 day. ~The most famous of all cannabis days, this is a celebration of the plant and the fight to lift its global prohibition. The term 420 originated at San Rafael High School, in 1971, among a group of about a dozen pot-smoking wiseacres who called themselves the Waldos, who are now pushing 50.
The term was shorthand for the time of day the group would meet, at the campus statue of Louis Pasteur, to smoke pot. Intent on developing their own discreet language, they made 420 code for a time to get high, and its use spread among members of an entire generation.
Want in on the action?
If you want to get in on the action, check out Stake. You can open a brokerage account in less than 5 minutes and be in the market that same day trading any of the stocks we've mentioned here.
Sign up using the code TGF2019 and Stake will send you a sick Hello Wall Street t-shirt when you fund your account with more than $2500 within 7 days of signing up.
The House takes Nothing
We connected with the online broker Stake in early 2019, as so many of our users didn't have a simple place to get into the sharemarket and buy (and sell) weed stocks.
The Green Fund doesn't get anything from Stake for plugging them. We just love what they're doing. However, we were able to arrange that you get something when you get into the market with Stake.