Best Canadian Pot Stocks

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Quick Look at the Best Canadian Pot Stocks:

• Cronos Group
• Hexo Corp
• Canopy Growth
• CannTrust Holdings Inc
• GrowGeneration Corp

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With many of the top large cap pot stocks, Canada is far ahead of the global curve in terms of marijuana legalization, and there are plenty of ways to profit from the industry. Take a look at 1 of the many growing pot stocks bringing Canadians marijuana and marijuana accessories.

Despite the popularity of pot and legislators clearing a path forward for the industry, it’s experiencing the growing pains of any industry led by small caps with volatile earnings per share reports. Pot stocks were hammered during the coronavirus, many analysts believe, because of slow government regulators and the lack of a viable residential distribution system. 

Regardless, it’s still early in the life of legal pot. Here are some stocks that many investors find interesting and are investing in for the future.

Overview: Canadian Pot Stocks

1998 was the 1st major legal breakthrough for the modern Canadian pot industry. Industrial hemp production and cultivation was declared legal that year, expanding the industry far beyond the limitations of the limited license era that began in 1961. 

In the year 2000, Terrance Parker won a seminal court case that upheld his right to grow cannabis as a means to control his epilepsy. The case set the legal precedent of declaring the prohibition of all cannabis unconstitutional.

From then on, the Canadian government did its best to get its legal structure out in front of the marijuana industry. At 1st, the Marijuana for Medical Access Regulations gave licenses to patients to grow their own cannabis. In 2003, the government of Jean Chrétien introduced legislation to decriminalize all marijuana possession. 

It was ultimately defeated, as was the decriminalization measure led by Paul Martin in 2004, but it led up to the 2011 ruling of Justice Donald Taliano that all prohibitions of cannabis production and possession were invalid under the constitution.

Through a few more important court battles, precedents were set for the passage of The Cannabis Act of 2018, completely legalizing all cannabis for any use. Legal distribution centers began to pop up around Canada, and the legal pot industry was born.

Best Online Brokers for Canadian Pot Stock

You may have to conduct a bit more research to find a broker that allows you to trade in the Canadian stock market if you’re investing inside American borders. Start with our best online brokers for Canadian pot stock.

Features to Look for in Canadian Pot Stock

1. Financial access. The biggest problem across the board for Canadian pot stocks is access to traditional forms of financing. Pot proprietors at many Canadia pot companies fell for the mania of the late 2000s to early 2010s and overpaid for their assets. Because of this, even companies that perform well may have too much debt to repay or may not have the cash to expand.
2. Focus. There are many pot companies that try to be all things to all people. The successful companies are usually the ones that focus on a single aspect of the market and streamline their physical operations to service a dedicated part of Canada, an incredibly sparse country.
3. Business savvy. Many companies with great products suffer from poorly negotiated contracts with set price and volume commitments. When the coronavirus hit, companies with these disadvantageous contracts found themselves struggling to produce and/or distribute their product at the price demanded.

Waiting for the Explosion

The Canadian pot industry never gave investors the explosion we all expected once governments got out of the way. That doesn’t mean it can’t still happen. Savvy, patient investors are usually rewarded over time, and Canadian pot is no different.

Choosing the right companies is certainly important. Time will whittle away the weaker competitors. As you time your entries for short term profits, make sure you also pay attention to the fundamentals of your chosen companies. Access to financing, focused attention and negotiating savvy is far more important than quarterly profits right now — even the best picks are still stocks under $20.

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