Cannabis stocks are a very tricky business. Just about every cannabis company that offers stock in America is a scam. As I always say, they rely more on the hype surrounding the cannabis industry to sell their stock than they rely on the quality of their product or service. These companies are easy to spot. If you want to evaluate an American cannabis company's stock, take a step back, look at their product or service, and ask yourself, 'are people really buying this product or service right now?' Or even better, 'is there even a product or service that is actually for sale?' Almost every time, the answer is no.
You would be better off buying magic beans than buying most cannabis stocks that are out there. If you are looking at buying cannabis related stocks, consider the stocks that are available in Canada. Whereas most American stocks are built on smoke and mirrors, some Canadian companies are built on cultivating medical cannabis for the Canadian government, which is a much more solid foundation. Two Canadian stocks are seeing solid growth. Per Marijuana Business Daily:
Bedrocan Cannabis Corp, which trades on the Toronto Stock Exchange under the symbol BED, rose as high as 1.45 Canadian dollars ($1.32) on Monday before closing at CA$1.17, about 38% above its issued price. Millions of shares changed hands, ranking it as one of the most heavily traded stocks of the day.
OrganiGram Holdings, which trades under the symbol OGI, saw its shares more than double from their issued price to close the day at 1.97 Canadian dollars. The stock reached as high as CA$2.40 at one point.
As with any investment, make sure to perform due diligence. Just because these stocks are rising right now, doesn't mean that they always will. Research the companies and make sure to keep a close eye on Canadian politics. The politics that surround cannabis, Canadian or otherwise, largely affect the industry. I'm not personally going to buy any Canadian cannabis stocks yet, but I'm definitely keeping a close eye on them to see how they develop over time.