You probably remember the Marijuana stock craze which started in early September 2016 and ended in late November. Any money you threw into a pot-related stock seemed to go up 100% to over 10,000%. I’m not sure if you’re watching the Marijuana Index (see below) but we seem to be hitting the highs once again, although this time many of the individual stock plays have not been participating. It is certainly a growth sector to watch, especially with Canada meeting this week on legalizing the country no later than July 2018. Listed below are some sites to help you navigate this booming category, as well as a new ETF that started last week that’s traded on the Toronto Stock Exchange.
Liberals set to table marijuana legislation, but key details need to be resolved
The Marijuana Index is my favorite to start your research. There are currently 228 companies that they cover and they use search filters that can break down the different sectors of the industry.
Another website to check out is All Marijuana Stocks
This website has a list of 80 U.S. based marijuana companies where you can quickly locate which of the 80 stocks are up on the day. This website has the stocks broken down into a star system based on how far the share price is from the 3 year high.
And the last website to check out is Marijuana Stocks and their List of Marijuana Stocks.
This website uses one-day charts as well and is useful for identifying what stocks are in play for the day.
Marijuana will become legal in Canada no later that July 2018 and is already legal in parts of the U.S. This is great for consumers and all, but businesses are having a field day in the “green” space. An entire industry dedicated to the cultivation and proliferation of cannabis products appeared seemingly overnight, finding new ways to use the plant and create new sources of revenue.
On 4/5/17, you can buy more than a dozen pot stocks at one time by investing in a marijuana-focused ETF. This ETF is the first of its kind, and focuses mostly on companies trading on the Toronto Stock Exchange. If you ever wanted to invest in medical and recreational marijuana, this ETF might be the best place to start.
What’s an ETF?
An exchange-traded fund, or ETF, is like a basket of stocks that you buy into. The financial firm managing the ETF buys millions or billions of dollars worth of shares from select companies and creates a fund. You can then buy shares of that fund, giving you a small percent of the fund’s total holdings. This allows you to a little bit of each company held in the ETF.
How does the HMMJ ETF work?
The Horizons Medical Marijuana ETF follows the Solactive North American Medical Marijuana Index. This index tracks the average performance of a select group of U.S. and Canadian-based companies that work in the medical marijuana sector and will own shares of over a dozen companies, including Aurora Cannabis (ACB), Scotts Miracle-Gro (SMG), Canopy Growth (CGC), and Insys Therapeutics (INSY). If the weighted average of these stocks increases during a trading day, then the value of HMMJ will increase, too. If you buy into HMMJ, you will essentially own small percentages of every stock it holds.
Should you buy HMMJ?
The medical cannabis space is booming in Canada, and most of the holdings in this ETF are in Canadian companies. If you think these stocks and the index will increase in value as weed becomes legal in Canada, you will want to do your research on the individual companies that comprise this ETF before investing.