blog, blogging, money

WEEKLY MARKET RECAP

Red hot sector.

This week the cannabis sector has been on fire. Stocks such as Tilray, Canopy Growth, Aphria & Aurora have been gaining momentum this last month as Canada prepares for legalization of recreational marijuana on October 17,2018. Also , with whispers of larger tobacco, alcohol and pharmaceutical companies looking to enter the sector expect a lot of interest in these stocks.

Is it too late to get in the game? I don’t believe so. I believe a stock like Tilray , which has reached a high of $300 recently is way overpriced but there are other companies I believe still has lots of room to grow. Aurora, Hexo & Aphria are 3 marijuana stocks that aren’t as pricy as Canopy Growth or Tilray but have long term potential.

Aurora Cannabis is looking to uplist to US markets next month but at this time trading OTC under ACBFF. Also, their earnings date is coming up 9/25/18 so there is time to purchase some shares and receive possible future gains. Also , with recent whispers of large beverage companies looking to partner with the company, I think this stock is fairly undervalued when compared with the other stocks in the sector.

Hexo (Hydropothecary) is also a reasonably priced marijuana stock. They currently have a joint venture with Molson Coors. At a price under $7.00 there is still time to hop on the cannabis train for a decent price.

Aphria is also one of the top 5 Canadian marijuana companies and has the potential possibility of being picked up by a beverage, tobacco or pharmaceutical company.

I listed some of the different stocks in the sector and believe there is a lot of potential for high long term gains. Remember, this is a new sector so expect a lot of volatility in the short term. If you are risk-averse these stocks may not be in your best interest. If you are okay with high risks, high rewards, I suggest you research some companies and look to invest.

DISCLAIMER*** I do not associate or work with any of these companies. I recommend you do your own research or contact a financial/wealth advisor if you need assistance in deciding if these stocks are right for you.

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