Molson Coors Canada (TSX:TPX.B)(NYSE:TAP) is one of Canada’s most iconic companies. It’s known as a beer stock, but the company could transform into a cannabis stock with a well-timed acquisition in 2020. Molson Coors was formed in 2005 by the merger of Molson of Canada and Coors of the United States, making it the world’s seventh-largest brewer. But its roots…
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Cannabis sales have seen significant growth recently as consumers around the country continue to stockpile supplies to prepare for prolonged self-isolation. This phenomenon isn’t new, of course. Historically, as the economy starts to go down, consumers tend to rely more on vices such as alcohol or, in this case, weed. As dispensaries in many areas are being considered essential businesses,…
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Speculations on whether the cannabis industry is a defensive, non-cyclical consumer staple producer with resilient sales that remain strong during economic recessions will settle when financial results for the first calendar quarter of 2020 start creeping in. Until then, should cannabis investors consider industry leader Canopy Growth’s (TSX:WEED)(NYSE:CGC) stock a defensive play during the ongoing coronavirus-induced economic meltdown? Canopy Growth…
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That Canadians are stressed shouldn’t come as much of a shock. After all, the COVID-19 crisis has sent stocks plummeting, one in three Canadians worry they won’t make rent or mortgage payments, and thousands of people have lost their jobs. It’s therefore little wonder that some Canadians have turned to cannabis for stress relief. Canadians have flooded online cannabis retail…
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Equity markets are making a comeback this week after several governments announced a slew of economic measures to fight COVID-19. In the last three days, the iShares S&P/TSX 60 Index has gained close to 20%. This recovery has driven stocks of a number of companies higher. Several marijuana stocks are roaring back to life as well after a disappointing 2019.…
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Every pot stock has been crushed. The marijuana bear market of 2019 sent cannabis ETFs down by more than 50%. The coronavirus bear market of 2020 has compounded the damage. Pot demand continues to grow. That’s not the issue. In 2019, the problem was commoditization. Tilray sent the industry into a nosedive last summer when it reported a pricing collapse.…
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Relief measures saw the TSX bounce 7% Tuesday. However, safe investments are still the order of the day. The country’s biggest stock exchange is still down by 5% on average for the past five days of trading. Value opportunities will be abundant in the coming weeks, so get out those watch lists. Investors could consider adding shares in stages, owning…
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Cannabis stocks took a beating during a coronavirus-induced market crash that deepened in March amid heightened and legitimate investor fears of a near-term economic recession. My prior proposition was that the marijuana industry could prove resilient during economic down turns. Will cannabis stocks prove defensive? Cannabis-resilient… like alcohol? Beer and alcohol demand usually remains strong during economic downturns, which makes…
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Coronavirus fears are rattling the market. While some are predicting a quick rebound, as time goes on, those hopes are being dashed. International experts now worry that social distancing measures may persist through the end of 2020, which could lead to massive layoffs and the shuttering of thousands of small businesses. Larger companies won’t be spared. Some were hoping to…
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A year ago, many investors in Canada’s cannabis industry were boasting of their incredible returns. Investors were doubling or tripling their money in a short amount of time on any company that planted a cannabis plant with a licence from Health Canada. Since a year ago, most of these same companies have been halved three times over. The broader Horizons…
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