The much anticipated date arrived and as Canada completed the legalization of cannabis the adult-use market began selling product to consumers.
Legalization wasn’t a perfect event, with multiple challenges seen across the country due to the different provincial regulations.
Similarly, the stock market took a downturn following legalization—a depression that was seen across the board all the way to the end of the month.
Financial experts share views on cannabis stock market following legalization
The Investing News Network (INN) had the chance to chat with a number of financial experts about what awaited investors after legalization.
The collective agreed, for the most part, cannabis remains a long-term play. However, the next few quarters will be critical for the sector as it is when investors will be able to determine which companies are actually turning in revenues.
“I think we can see another wind of excitement come once we can actually start to get some numbers and figure out who actually is making some money,” Greg Taylor, portfolio manager with Purpose Investments and the active manager of the Purpose Marijuana Opportunities Fund (NEO:MJJ), said.
Cannabis shorts turn a profit
Short sellers of cannabis stocks ended up enjoying the dip from legalization as the shorts, according to a new report, made US$450 million during two trading days at a low point for the downside.
The report from research firm S3 Partners found shorting cannabis stocks has raised in popularity amongst investors.
The note indicated the gains made by shorts on October 23 and 24 have cut approximately a third of the year-to-date losses for cannabis shorts.
Watch the video above for more on what happened during the month of October.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.