Have we finally found a bottom? After consistently following a downward trend for the last seven months, pot stocks may finally be rebounding.
While it’s not clear what the rest of 2019 will hold for the cannabis industry, one factor indicates things may be turning around. For the first time ever, a US congressional committee has approved a bill that could end federal marijuana prohibition.
Earlier today, the Marijuana Opportunity, Reinvestment, and Expungement Act (or the MORE Act) passed the House Judiciary Committee. The Act is now headed for a vote on the floor of the House of Representatives. As this exciting news returns investor optimism to the industry, Rich profiles which pot stocks are seeing double-digit growth.
Pot Stocks Exploding: Canopy Growth
Shares of Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) are up 16.06% today. Since the start of the week, the world’s leading cannabis company has seen its stock price grow from $18.78 to $23.58. That’s a 25% increase in just three days!
“If you got in at $18 you’re just laughing right now,” says Rich. “Pot stocks are just on fire today.”
After releasing its second-quarter earnings last week, Canopy Growth seemed destined to go down. It reported $374.6 million in net losses, double the amount that analysts expected. That comes out to $1.08 in losses per share.
Nevertheless, the investing community seems to believe CGC has hit its bottom. The stock is now ricocheting into growth on optimism that Cannabis 2.0 will seriously improve Canopy’s revenue.
While the company’s stock is still near its two-year low, investors still have the partnership with Drake to feel bullish about.
Pot Stocks Exploding: Aurora Cannabis
Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB) stock grew 11.41% today. Like Canopy, it’s been growing since the start of the week. ACB gained 16% value from $3.00 to $3.50 in the last three days.
Also like Canopy, this rebound comes after disappointing quarterly results. Aurora’s earnings, revenue, and forecast were so poor, in fact, the company is being targeted by investor rights law firms, which suspect Aurora Cannabis of misleading its shareholders.
None of that, however, has kept ACB from its gradual recovery this week. This morning, the company even added two senior executives to its team: a Chief Product Officer and a Chief Integration Officer.
Pot Stocks Exploding: TGOD
With an astounding 20.55% increase since the start of trading this morning, The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) is the big winner of the day.
TGOD shares fell to $0.65 on Monday morning, a new all-time low. Since then, they’ve grown by leaps and bounds, up 37% to reach a value of $0.89.
This growth is facilitated by the news that the Dutchman received an order on Tuesday to ship cannabis to Nova Scotia, Alberta, and Manitoba. That’s a tremendous order for the relatively small company, as it opens access to as many as 340 new retail outlets.
To encourage more citizens to enter the cannabis sector, TGOD also announced that it is launching a certification course for anybody who wants to become a ‘budtender.’
As always, it’s impossible to say just how pot stocks will behave in the future. But if this week’s movements are any indication, the sector may be coming out of the red and into the green just in time for the holiday season.
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