Pot stocks are off to a strong start to 2019. Tilray Inc (NASDAQ:TLRY) has risen nearly 30% in just the past month as the year could be shaping up to be a very good one for the industry.
With cannabidiol (CBD) derived from hemp being legal in the U.S. and edibles looking to be legalized in Canada at some point during the year, there are a many growth opportunities for pot stocks today. Penetrating the U.S. market might be especially lucrative given how much bigger in size it is compared to Canada’s. While it won’t be for products with high levels of tetrahydrocannabinol (THC), it’s still a big improvement from a year ago when then-Attorney General Jeff Sessions put cannabis companies on notice that the feds could come after them, even in states where marijuana was legalized.
While complete marijuana legalization is still likely years away, it gives companies like Tilray a great opportunity to at least begin setting up strategic positions in the market.
The reason why Tilray in particular is an attractive option is that it has proven that it can generate a lot of excitement among investors. In 2018, the stock hit $300 a share. And while it may not be able to reach those highs in 2019, at less than $100, there’s definitely a lot of upside from where the share price is today.
With Canadian companies benefitting from a thriving recreational market, revenues will be much stronger than they were a year ago, putting Tilray in a great position to capitalizing on a stronger cannabis market.
