The pot stock market has remained wildly intriguing over the course of the past few years. In that time, we have seen the industry shift rapidly allowing companies to move toward their future projected values. With this in mind, we must remember that the pot stock industry does not function like that of other markets. This is due to the infancy of pot stocks as a whole. 

Since the market has only been around for a short period of time, it can be difficult to deduce common strategies to utilize for investing. There are, however, some different strategies that can be used to find certain pot stocks to watch. Bear in mind that pot stocks are more volatile than other investments, again due to the age of the market. This, however, has its ups and downs.

Regardless, there remain several pot stocks to watch. Last month shares of pot stock from Cronos Group (CRON Stock Report), Canopy Growth (CGC Stock Report) and Tilray (TLRY Stock Report) started to drop. However, September seems to be a good month as the stocks have gained most of their losses.

marijuana-stock

Marijuana Stocks Face More Hurdles

In recent months several factors have weighed on the marijuana stock market. Some of the issues the market has had to contend with include high tax rates in major markets in the US such as California, regulatory delays in Canada, compliance scandals as well as illegally produced cannabis. These factors have greatly dented the operating results of the companies which expect to lose money not just this year but also in 2020.

A lot of investors seem to have lost confidence with cannabis companies and near-term minded hedge funds in the recent quarters have been bailing on marijuana stocks. This month most investors have become bullish in their view of cannabis stocks.

Pot Stocks Look For Market Stability

For instance, Investment bank Seaport Global recently changed their outlook on the  Canopy Growth from neutral to buy. Equally, it increased the price target for pot stock Canopy Growth to $31per share. Seaport Global’s Brett Hundley quoted the company’s cash-rich balance sheet. He also gave a price pool of marijuana-related intellectual property as the explanation for his bullish sentiment.

Bank of America analysts praised Cronos Group’s acquisition of Redwood Holding Group’s subsidiaries that will give it control over the Lord Jones brand of CBD beauty products. This is the first of many acquisitions for the company in the burgeoning CBD space.

Cannabis stock to watch Tilray saw its stock rise after Cowen analysts Vivien Azer cut her target price from $150 to $60. This was done mainly because of supply constraints in Canada that are affecting the company’s growth. Azer sees Tilray outperforming rivals going forward because of its effort to enhance production, new retail outlets in Canada as well as its intriguing opportunities in the international market.

 

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