Germany Legalizes Cannabis, North American Stocks Surge 3 Days: Interested?
Some of my long-term picks: canabis stocks rose significantly on Tuesday $Canopy Growth Corporation(CGC)$ +16.6%, $GrowGeneration Corp.(GRWG)$ +9.06%。
Here’s a look at more canabis stocks that are gaining well: $Akerna Corp Warrant(KERNW)$ , $Village Farms International Inc(VFF)$ , $Vitalibis, Inc.(VCBD)$
I checked the related news and said that cannabis has been legalized in Germany (the history of cannabis legalization is attached at the end of the article).
The consumption and legalization of marijuana has always been controversial.
Some worry about potential abuse and health problems, while others think it should be more liberalized.
Although the legalization process is gradually advancing, there are still legal and ethical challenges that require joint efforts by the government and society to solve.
But from the perspective of investings, how big is the market for cannabis stocks, and what are some worthy companies? Out of curiosity, I briefly checked the business types of this industry:
Source from Fortunebusinessinsights.com, the report data indicates that in 2022, North America will dominate the global market with a share of 81.79%. The global cannabis market size will be US$43.72 billion in 2022, and is expected to grow from US$57.18 billion in 2023 to US$444.34 billion in 2030, with a compound annual growth rate of 34.03% during the forecast period.
The cannabis industry is booming in the United States and Canada. Recreational and medical cannabis products, from oils, edibles, and pre-rolls to vapes, skin care products, and more, are now part of a multibillion-dollar industry, and investors are taking notice.
Grandview Research predicts that the global legal cannabis market is expected to grow at a compound annual growth rate of 25.7% from 2024 to 2030.
Top 9 Cannabis Companies in US & Canada: Market Cap, HQ, Year Founded, Products
Data by 26 March 2024
Company | Market Cap (USD) | Previous Day Change | 1 Year Return | Headquarters | Founded | Cannabis Products |
$4.04 billion | 2.02% | 71.19% | Wakefield, MA | 2010 | Medical and recreational | |
$3.27 billion | 5.2% | 80.51% | Chicago, IL | 2014 | Medical and recreational | |
$2.63 billion | 0.02% | 37.63% | San Diego, CA | 2016 | Medical and recreational | |
$2.28 billion | 1.86% | 86.69% | Chicago, IL | 2014 | Medical and recreational | |
Company | Market Cap (CAD) | Previous Day Change | 1 Year Return | Headquarters | Founded | Cannabis Products |
$1.61 billion | 7.44% | -11.49% | Nanaimo, BC | 2013 | Medical | |
$0.95 billion | 6.02% | 34.69% | Toronto, ON | 2012 | Recreational | |
$0.61 billion | 4.07% | 22.69% | Mississauga, ON | 2017 | Medical and recreational | |
$0.57 billion | 16.61% | -61.54% | Smith Falls, ON | 2014 | Recreational | |
$0.51 billion | 13.87% | -20.12% | Calgary, AB | 2006 | Medical and recreational |
The first four are American companies. The following is a comparison of the four companies from the perspective of revenue growth. $Innovative Industrial Properties Inc(IIPR)$ , $Verano Holdings Corp.(VRNOF)$ tops revenue growth.
As of 2024, recreational marijuana has been legalized in 24 U.S. states, two territories, and the District of Columbia. Several other states and territories allow the sale and consumption of medical marijuana as part of the health care sector.
The latter five are the top five listed cannabis companies in Canada, and $TerrAscend Corp.(TSNDF)$’data from the perspective of profitability are more outstanding.
Canada’s 2018 federal Cannabis Act makes medical and recreational cannabis legal in Canada for adults 18 years and older. Since then, the industry has grown rapidly across Canada.
https://seekingalpha.com/
Faisal Humayun from InvestorPlace Contributor , said the above marijuana stocks are undervalued.
Considering that the market capitalization of these companies is relatively small, the current market frenzy are AI stocks.
Do you still interested in related stocks for longterm?
Welcome tiger friends to leave messages in the comment area.
Note: Germany’s cannabis legalization process:
In the 1990s, Germany first explored medical cannabis use, laying the groundwork for its legalization.
In 2017, Germany passed the Drugs and Similar Medicines Act, allowing doctors to use cannabis as a medical treatment for patients with serious illnesses.
As time goes by, social calls for the legalization of marijuana have gradually increased, and people from all walks of life have begun to call on the government to relax relevant legal restrictions.
In 2019, the Berlin city government announced a pilot project to allow adults to legally purchase and consume cannabis in specific locations.
In 2020, Germany's Federal Constitutional Court ruled that personal cultivation and possession of small amounts of cannabis is no longer illegal, taking an important step towards the legalization of cannabis. Some local governments have begun to try measures to legalize cannabis, such as opening cannabis stores.
In 2022, the German government announced that it would further study the feasibility of legalizing cannabis and conduct pilot projects in several regions to assess its impact.
On April 12, 2023, the German Health Minister announced that the draft key points for the legalization of cannabis have been completed. Legalizing marijuana aims to provide a clean product, curb the spread of the black market, and protect minors and the public.
On August 16, 2023, the German cabinet passed a draft legalization of cannabis, with adults possessing a maximum of 25 grams of cannabis. Possession of up to 50 grams of cannabis per month is allowed. Each person is allowed to grow three cannabis plants on their balcony or yard.
On February 23, 2024, the German Bundestag voted to pass a cannabis legalization bill with 407 votes in favor, 226 votes against, and 4 abstentions.
On March 22, 2024, lawmakers in the German Bundesrat (the upper house) passed the long-debated bill, and the new regulations came into effect on April 1.
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- Matt 30·03-27👍LikeReport