After so long of being condemned in the majority of the United States, cannabis has declared its name in the market and trust us, neither consumers or brokerages are complaining about this one.
We all believe it’s long overdue, especially in the states where it hadn’t been legalized. Now, cannabis is becoming a phenomenon from the rumored cannabis Pepsi drink, to the new recreational use, people are feeling beginning to feel at ease with it being a huge market go-er. people are so at ease that in fact, they’re no longer questioning investing in it. In terms of investing, there are two cannabis stocks to watch for in 2019, as they have done extremely well thus far.
CGC and HEXO
There are nine states that have legalized recreational cannabis, and only 29 have allowed medicinal marijuana, but this is good news for marijuana stocks Canopy Growth Corp (CGC) and HEXO because no matter what, they’re extremely high on the charts, both having topped charts within their Q4 sales.
Canopy Growth Corp capped at the top of the chart in Q3, making it, now, the most successful market based on cap alone. The Canadian company’s main focus is recreational cannabis, which has helped the company extend its partnerships to Constellation Brands, a winery company that produces wine, beer, and spirits (familiarly Modelo and Corona), allowing them to really cut corners inside of the recreational cannabis industry.
Not only did they partner with a killer company, but their profits for Q3 fiscal 2019 came in at over $97 million in gross sales. Not to mention, this company is a luxury due to its high-standing resiliency in states of low-liquidity.
HEXO Corp is a Canadian-based company serves adult-use directly from HEXO, and then its medicine consumers through their former Hydropothecary brand. Their consumers spent over $150 millions dollars on legal cannabis in Q4. Since Canada’s legal marijuana market hasn’t been open that long, it has managed to undeniably earned its spot in sales rankings, which means HEXOs sales are only expected to increase in 2019.
However, the industry could potentially run into trouble about the amount of marijuana it is producing, but, since HEXO has a firm grasp on the industry thus far, it shouldn’t have problems monetizing the amounts being produced.