So far, 2021 has been an exciting year for the stock market and small-time investors. After a group of Redditors stood together and fought back against a multi-billion dollar hedge fund bet against GameStop, share owners for the company, along with other stocks that are popular among meme culture, watched their stock value rise dramatically.
Not only did this stir up other markets as well, but it brought in a giant influx of people to the stock exchange.
And a little over a week ago, another big shift occurred in the market when Jazz Pharmaceuticals acquired GW Pharmaceuticals for $7.2 billion. In a move that shocked many in the cannabis industry, GW Pharma spurred rapid movement in the stock market.
As a result, several cannabis stocks benefited and led to investors doubling down on cheaper stocks. But surely this GameStop trend wouldn’t carry over to the cannabis industry, right?
*One Week Later*
Sure enough, the trend continued. And although it may not have been as dramatic of a stock boom like the GameStop incident, several cannabis stocks saw new peaks that hadn’t been reached in years.
Here are 5 cannabis stocks that soared after the GW Pharma acquisition:
- Medical Marijuana, Inc. (MJNA)
- OrganiGram Holdings, Inc. (OGI)
- Tilray, Inc. (TLRY)
- Canopy Growth Corporation (CGC)
- KushCo Holdings, Inc. (KSHB)
5 Red-Hot Cannabis Stocks
These 5 cannabis stocks saw significant growth the week following the news of GW Pharma’s acquisition (February 3rd – February 10th).
Medical Marijuana, Inc. (MJNA)
+325% ($0.04 to $0.17)
Medical marijuana, Inc. is a holding company whose subsidiaries produce and sell a variety of hemp-based products. Coming into Wednesday, February 3rd, their shares were opened at 4 cents. One week later, and their stock rose to 17 cents per share this week, marking their highest share price since the beginning of 2017, and the first time that price has reached over 10 cents since the end of 2018.
Some of their more well-known subsidiaries include The Hemp Network, Hempwire LLC, Kannaway LLC, and HempVap LLC.
OrganiGram Holdings, Inc. (OGI)
+214.14% ($1.91 to $6.00)
OrganiGram Holdings, Inc. rewarded its loyal shareholders this past week with a price surge of more than 200 percent. This Canada-based cannabis company reached a clean $6.00 at its peak on the 10th, making it $1.98 shy of its previous peak; a feat that seems small after the $4.09 jump it took over the past week.
There’s nothing to indicate that this growth won’t continue, making it one of the prime options for new investors.
Tilray, Inc. (TLRY)
+151.02%($25.46 to $63.91)
Tilray was founded in 2013, making it one of the newer stocks on the market. Only a week prior to GW Pharmas’ sale announcement their stocks were sitting at $25.46; a starting point that far outpriced any of their peaks in 2020.
A week later, and Tilray, Inc. had seen an increase of around 151%, driving their share price to $63.91. Some experts even say that it closely resembles a surge they had undergone in 2018, in which their stock had, at one time, climbed from around $24 per share to $148 per share in a little over two months.
Canopy Growth Corporation (CGC)
+22.58%($42.56 to $52.17)
Formerly known as Tweed Marijuana, Inc., Canopy Growth Corporation is an Ontario-based cannabis company that specializes in both THC and CBD products. Their climb to $52.17 marks their all-time high share price under their rebranded name.
Even on the last day of this 7-day span, CHC saw a price increase of 6.27%. This could be a good indicator that it will continue to set its new ceiling for several days to come.
KushCo Holdings, Inc. (KSHB)
+19.19%($1.72 to $2.05)
KushCo Holdings is an American-based company that sells containers, packaging, and other ancillary products to businesses in the cannabis industry.
Though they didn’t experience as big of a surge as the aforementioned cannabis stocks, the small spike was encouraging to stockholders with their foot in the game. KushCo is currently working toward bringing their share prices above $4, which is where they wandered around for a little under 2 years from 2018 to 2019.
Should You Buy?
With all the stock market craze that’s been happening, it’s hard to resist the urge to want to get in the game. And truth be told, now is as good of a time as any, especially for beginning investors who only want to stake small amounts of money.
MJNA has become a popular cannabis stock for those seeking over-the-counter pink sheets. With a price tag at less than $1 per share, it’s a great stock to invest in with an individual brokerage account to try your hand at the market. Just remember, red-hot stocks don’t stay hot forever. And there’s no telling what will happen with the cannabis industry in 2021.
Ultimately, the decision is yours on whether you want to jump into playing the stock market.
Thanks for reading, and be sure to visit again for any cannabis stock updates.