Which Pot Stocks are Showing Growth Today? WEED and ACB

pot stocks

While pot stocks began showing some impressive growth in the first week of October, the industry seems to have gotten spooked once again. After reaching a peak of $49.06 on October 4, the Canadian Marijuana Index has slid nearly 6% to $46.18.

This is part of a much larger trend that’s seen pot stocks drop from $110.67 since March. The industry continues to look for a bottom, and Rich is here to discuss how investors should play the market now, and which companies are showing growth.

“I’ve seen a lot of panic everywhere,” explains Rich. “This is the seventh month in a row now where we’ve seen a lot of red. But what goes up must come down and vice versa. I believe there are a lot of buying opportunities, and there are a lot of companies that are going to double from here.”

Pot Stocks Gaining: Canopy

In perhaps the best news for the industry at large, Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) rose 1.25% today. As the largest cannabis company in Canada and one of the most attractive pot stocks in the world, Canopy’s moves tend to signify the direction of the market at large. 

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Yesterday, former BC Premiere Christy Clark joined the board of one of Canopy’s biggest and most influential partners, Constellation Brands (NYSE:STZ). In an interview with BNN Bloomberg, Clark said that larger companies like Canopy and Constellation have the capacity to ensure that their cannabis products are produced and distributed safely. 

“There aren’t really any other companies in the cannabis space at the moment that have this level of capacity,” she said.

Despite the conservative gains from today, Canopy’s stock price dipped below $30.00 this week for the first time in a year and a half. 

“Canopy Growth under $30 seems like a ‘buy,” says Rich. “Every time it goes under $30 it seems to jump up, so I don’t think Canopy’s going to stay under $30 based on how it’s been trading.”

More Pot Stocks Gaining: Aurora

Also in the green is Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB), the second biggest cannabis company in the country, trailing Canopy. ACB stock rose a modest 0.36%, but as Rich notes, any growth in pot stocks is good growth right now.

This morning, Aurora and CTT Pharmaceutical announced the commercialization of CBD-infused sublingual wafers. This product is the first of its kind and is being launched by Aurora in the Canadian medical cannabis market under the name “Dissolve Strips.”

Aurora owns approximately 9% of CTT, with a warrant allowing it to increase its stake to 42.5%. It can also access CTT’s patent-protected sublingual wafers drug delivery technology.

ACB stock is currently $5.52. Just two weeks ago, Rich discussed an analyst’s report that projected Aurora to double in stock price sometime next year.

“Aurora Cannabis anywhere around $5.00 is a ‘buy,'” Rich adds now. “In my opinion Aurora will double from these prices. Canopy will double from these prices. I think a lot of companies are going to double from these prices.”

Other companies that Rich cites as potential doublers include HEXO Corp. (TSX:HEXO) (NYSE:HEXO), OrganiGram Holdings (TSX:OGI) (NASDAQ:OGI), and Aphria Inc (TSX:APHA) (NYSE:APHA). 

What do you think? Are pot stocks due for growth? How long do you think the industry-wide decline will last? Join the conversation in the comments below.

Featured image: DepositPhotos © forkjemper

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