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How To Buy Marijuana Stocks In Canada

Marijuana stocks have given cannabis investors nothing but false starts over the past few years. Most recently, there were a plethora of issues facing the industry throughout 2022, including inflation, overproduction, lack of capital, job losses and cratering stock prices.

how to buy marijuana stocks in canada

The long-term prognosis for the cannabis industry is good. Ultimately, the following nine picks look like the best marijuana stocks (and funds) to benefit from this ongoing growth and maturation.

On the consumer side of cannabis, it has a $150 million six-year convertible note in RIV Capital (CNPOF (opens in new tab)), which represents a 42% stake. In March 2022, RIV Capital acquired Etain Health (opens in new tab), one of New York state's original medical marijuana producers, for $247 million. Etain has one of 10 vertically integrated licenses from the state.

Still, IIPR remains one the best REITs on Wall Street, as well as one of the best marijuana stocks, according to analysts. Piper Sandler analyst Alexander Goldfarb has an Overweight rating (the equivalent of Buy) on IIPR, with a $140 target price, some 55% higher than current levels.

If you're looking for a pure-play cannabis company in the U.S., Massachusetts-based Curaleaf Holdings (CURLF (opens in new tab), $3.82) is one way to go. The firm got its start in New Jersey in 2010, developing one of the first vaporizers to administer a single measured medical marijuana dose.

A total of 39 states, as well as Washington, D.C., have legalized medical marijuana. Twenty-one states and D.C. have legalized adult-use cannabis. As more states legalize recreational weed, Curaleaf should be able to continue to grow its business organically and through acquisitions.

Cresco is one of Wall Street's favorite marijuana stocks. Of the 19 analysts following the stock, 13 give it a Strong Buy, three say it's a Buy, and three have it at Hold. Plus, the average target price of $6.88 implies the stock will more than triple over the next 12 months or so.

Not forgetting that this is an article about the best marijuana stocks, British American Tobacco invested an additional $5.1 million last March in Canadian cannabis producer OrganiGram Holdings (OGI (opens in new tab)), bringing its stake in the company to 19.5%. The two continue to collaborate on new cannabis-related products.

By comparison, the MJ ETF follows the performance of the Prime Alternative Harvest Index, which in addition to tracking cannabis stocks, also includes cigarette manufacturers such as Altria (MO (opens in new tab)) and a 20.1% weighting in the ETFMG U.S. Alternative Harvest ETF (MJUS (opens in new tab)). As a result of the ETF weighting, the Canadian content in MJ is slightly less than 42%.

In the U.S. today, 46 states have adopted partial or total legalization of cannabis or related products. Increasing acceptance of marijuana among American consumers and their elected representatives could make this edgy asset class a potential source of growth for your portfolio.

Aurora Cannabis is a Canadian LP with the top share of the Canadian medical marijuana market. Aurora management has said the company should finally be profitable on an earnings before interest, taxes, depreciation and amortization (EBITDA) basis as it exits the December quarter.

Unlike the U.S. and Canadian stocks on this list, Clever Leaves is a large global cannabis producer headquartered in Colombia with cultivation and extraction operations in Colombia, cultivation facilities in Portugal and a distribution network in Europe.

The stocks highlighted on this list are sourced from industry analysts, but they may not be a perfect fit for your portfolio. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance.

However, the first wave of U.S.-listed cannabis stocks has been something of a disappointment. Shares of high-growth, multi-state operators (MSOs) have slumped in 2023 as cannabis producers face pricing pressures in a fiercely competitive U.S. market.

In U.S. states with mature marijuana markets, like California and Colorado, prices have fallen significantly. The price of most cannabis categories are near record lows in Colorado, with the price of flower down 50% and the price of trim down 41% year-over-year.

Wayne Duggan is a Forbes Advisor contributor. He is also a staff writer at Benzinga, where he has reported on breaking financial market news and analyst commentary related to popular stocks since 2014. Mr. Duggan is also the author of the book "Beating Wall Street With Common Sense" and has contributed news and analysis to U.S. News & World Report, Seeking Alpha, and The Motley Fool. Mr. Duggan is a graduate of the Massachusetts Institute of Technology and resides in Biloxi, Mississippi.

If you think it's a challenging time for Wall Street, take a closer look at how poorly marijuana stocks have performed since February 2021. With federal cannabis reforms failing to materialize, pot stocks quickly went from the hottest thing on Wall Street to absolute buzzkills. But that may be about to change.

Last week, President Joe Biden made an address on marijuana that involved pardoning simple cannabis possession offenses, and encouraged Attorney General Merrick Garland and Health and Human Services Secretary Xavier Becerra to review marijuana's current scheduling under the Controlled Substances Act. In other words, the president took the first steps to potentially legalizing marijuana at the federal level.

Cannabis is a massive global opportunity. Research firm BDSA has forecast a compound annual growth rate of more than 16% for the industry through 2026. If accurate, the global weed market would be worth $61 billion in 2026, with a majority of these sales originating in the United States. In other words, the beatdown that pot stocks have endured has rolled out the red carpet for opportunistic investors.

Just like any REIT, IIP, as Innovative Industrial Properties is more commonly known, aims to buy properties that it can lease for a lengthy period. The only difference is that IIP is looking to acquire and lease medical marijuana cultivation and processing facilities. Since marijuana is federally illicit, cannabis can't be transported across state lines. This means there's a big need for cultivation and processing facilities in all legalized states.

Interestingly, the lack of cannabis reform on Capitol Hill has actually been a positive for Innovative industrial Properties. With weed illegal at the federal level, access to credit markets has been spotty for pot stocks. IIP has stepped in with its sale-leaseback program to allay these concerns. IIP acquires facilities with cash and immediately leases these properties back to the seller. It's a win-win that puts cash in the pockets of multi-state operators (MSOs) while landing IIP long-term tenants.

A second marijuana stock to buy hand over fist at the moment is U.S. MSO Cresco Labs (OTC: CRLBF). Despite a lack of cannabis reform progress in the U.S., Cresco Labs has three catalysts that can send its shares notably higher.

But just because marijuana is shaping up to be one of the fastest-growing industries of the decade doesn't mean every pot stock is worth buying. Canadian licensed producer Aurora Cannabis (NASDAQ: ACB) is exhibit 1A of why you shouldn't blindly invest in a fast-paced industry.

When SNDL first became a publicly traded company in 2019, it was relatively undecipherable from other Canadian pot stocks. It primarily focused on wholesale cannabis, with management making the decision not long thereafter to pivot to retail sales because of its higher margin potential.

While it's understandable that some investors appreciate SNDL's hearty cash position and its desire to buy other marijuana businesses, management raised this capital with no particular plan in mind. Following a couple of acquisitions, SNDL's outlook remains cloudy. The company's cash pile has shrunk as losses have continued, which raises the likelihood that SNDL could turn to additional stock issuances to boost its cash position.

Here's The Marijuana Stock You've Been Waiting ForA little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

While some places in the world allow citizens to use cannabis recreationally, many only permit marijuana use for medicinal purposes. The United States, for example, is a patchwork of legal environments where each state creates its own legislation for each type of cannabis use. Make sure you understand where a company operates and what it sells before you buy its stock.

Since each share of an ETF represents a piece of everything the ETF owns, you can gain significant exposure to a group of stocks with a single trade. It also comes with built-in diversification to protect your investment.

Cannabis ETFs, for example, are funds that invest in companies that grow, cultivate, distribute, research, and sell cannabis products, or companies that have some exposure to cannabis stocks (such as a pharmaceutical company that is investing in cannabis).

As marijuana legalization and cultural acceptance grows, many companies in the United States and Canada can now openly produce, cultivate, and process cannabis, as well as develop unique products for medical and recreational use. 041b061a72


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