Cannabis stocks are coming back to life as states including New Jersey and Arizona legalized recreational marijuana use.
The news followed Tuesday’s election, which also featured state-level ballot initiatives. Montana and South Dakota passed similar measures. The market’s now anticipating further steps in other jurisdictions across the country.
Cannabis stocks have struggled since an initial wave of enthusiasm two years ago. However, 2020 has seen names with clearer business models outperform. (These companies tend to have more concrete value adds than simple growers, which is a commodity business.)
Some of the outperformers even before today’s surge:
- GrowGeneration (GRWG): Retailer of hydroponic growing supplies. Up 363 percent YTD, as of Wednesday’s close.
- Innovative Industrial Properties (IIPR): Owner of greenhouses. Up 76 percent YTD.
- NewAge (NBEV): Maker of cannabis drinks. Up 49 percent YTD.
People were talking about a “blue wave” on Tuesday. Did we get a “green wave” instead?