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The next big thing: Canadian dagga stocks
The value of 26 marijuana stocks listed in Canada has swelled to almost C$4 billion ($3 billion) from close to nothing in the past two years
The surge of capital into Canada’s nascent marijuana industry has sent stock prices soaring -- and brought warnings it’s a bubble that could soon burst. The value of 26 marijuana stocks listed in Canada has swelled to almost C$4 billion ($3 billion) from close to nothing in the past two years, as investors rushed to bet on the country’s move toward legalizing recreational use. Canopy Growth Corp. became the first marijuana unicorn, reaching a valuation of C$1.24 billion on Wednesday. Other producers, including OrganiGram Holdings Inc. and Aurora Cannabis Inc., saw their share prices surge more than 250 percent this year. While investor optimism is being fueled by analysts’ estimates that there could be about 3.8 million recreational marijuana users in Canada by 2021 and billions in sales, there’s mounting concern companies are overvalued. How Canada will regulate, tax or distribute the products, remains unknown and some of the publicly traded companies have yet to make a sale. “Oh, ...
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