Several actions related to the cultivation and processing of marijuana received support before legalizing marijuana in Canada. While the shares of most companies struggle with Trump’s tariffs or geopolitical tensions, Aurora Cannabis Inc. and MedMen Enterprises Inc. marked strong growth. Given the highly volatile segment, however, it is good to head to ETF’s instead of separate stocks. Cannabis ETF Horizons Marijuana Life Sciences closed 7.5% higher and ETFMG Alternative Harvest jumped 8.3%.
Current prices do not provide a low-risk trade, but the potential for the companies in question is great and for this reason we should add them to our Watch List.
Source: Bloomberg Finance L.P.
Charts: Used with permission of Bloomberg Finance L.P.
Trader Petar Milanov