by Eric Vengroff, Financial Analyst, CannabisDaily.today
Friday marked an 11-day win streak for the TSX, even in the face of several down days on both the Dow and the S&P. I’ve seen a rise in my financials, telecom, and pipeline stocks this past week. Perhaps the recent mini-boom can be partly attributed to cannabis too. After taking a breather in the early spring, where a number of cannabis stocks lost between 8-10% of their value, last Monday’s announcement that Aurora Cannabis (TSX:ACB) will buy rival MedReleaf (TSX:LEAF) for C$3.2 billion ($2.51 billion US), brought some enthusiasm back into the market. Indeed, the top three stocks on Friday by volume were Aurora, Canopy Growth Corp. (TSX:WEED), and Aphria Inc. (TSX:APH). It seems the subject is mentioned on average about once every 15 minutes on BNN, so perhaps this is no surprise.
Last week, Canopy announced that it has plans to be listed on the NYSE. No, not NASDAQ, as others have gone, but the Big Board, an unprecedented move.
In commenting on this recent development, Motley Fool has pointed out that production, sales, and distribution of cannabis is illegal in the U.S., at the federal level and although a patchwork of state regulations allows various experimental models of distribution and commerce, not being in compliance with U.S. laws violates TSX terms and might be reason enough to delist the stock.
However, there is a big potential upside for Canopy, as the NYSE will increase distribution and awareness of this company, as well as the sector and ways to invest in it for Americans.
The information and opinions presented here are that of the analyst and do not represent the thoughts and opinions of this website. The analyst does not own or represent any of the companies listed in this article and receives no compensation from any party mentioned in this article. Readers are urged to do their own research and due diligence and should seek advice from an independent financial advisor before making any financial investment.