Quick money – Cannabis stocks
Cannabis which is also known as marijuana becomes legal in Canada starting October 17, 2018. There are lots of fears gripping the society about making it legal. Some people think this will prevent the crime as it will no longer be sold illegally. Without going into analysis of the advantages and disadvantages of legalizing, lets look into the impact on financial markets.
Those who have been trading for a while know that there have been lots of fluctuations in the price of Cannabis stocks. We all know the stocks which have lots of fluctuations are very good for short term profits and quick gains. Many of my friends have made good money through Cannabis stocks. Lets look into some of the well known stocks of Cannabis.
- Canopy : Canopy Growth Corporation(NYSE: CGC) which is also known as Weed in Canadian market(TSX: WEED) is one of the stocks which has multiplied the wealth of many investors in short term. Both the US and Canadian market version of the stock generally shows a price range of $2 to $5 within a day and sometimes $10. The best part is the price of the stock is under $100. This means that within low investment you can get good investment.
- Aurora Canabis (TSX: ACB): This is another stock which you will see with variable price ranges within days. The best part is that the average price within these days is about $12 although the 52 week range is $2.83 to $16.24.
- Aphria (TSX: APH.TO): Another Cannabis stock which is within $20 range and can be used to make good quick money.
- Tilray(TLRY): This stock has recently bounced in the market at price range about $145. You may be shocked to notice that the 52 week price range is from a low of $20 to $300. Imagine the potential it had or has to make good money as well as loose big money depending upon how you timed the market.
Some Cautious words:
Like most other faster money making ways there is a word of caution. The weed or pot or cannabis market is very immature as it just got legalized in Canada. Very few countries or states and provinces in any country have it legalized. There are lots of conditions about its usage and purchase. Imagine a pharmaceutical company working on a drug which suddenly gets approved – what will be the impact on the stock price. It is somewhat similar situation. It is used for medical purposes for years and now with legalization the business for producers will thrive. Suddenly these companies are getting orders around the world and there are lots of tie-ups and acquisitions in the air.
For a business to make quick money it is right time but do not follow the crowd. Make calculative decisions and use a small portion of your investment to make money – not risking big amounts. On a positive note some of these companies may become long term big players. Another important point to note is that many of these companies will not have past history of Financial ratios which most of the analysts and algorithms or robots use. So a calculative judgement is important while investing money in cannabis stocks. Do not leave the opportunity but carefully risk some percentage of investment to make quick bucks.
Author: Gagandeep Singh