Here's Why Cannabis Stocks Are Getting A Boost
Alan Brochstein, founder of 420 Investor and New Cannabis Ventures, says there are "two factors" that led to this, citing Aphria Inc. (NASDAQ:APHA).
Aphria Earnings: "First, Aphria rallied yesterday ahead of tomorrow's report," he said. "I pointed this to perhaps shifting sentiment."
Aphria shares traded higher by 9.2% on Monday and remains Cantor Fitzgerald's "top pick" among Canadian LPs.
MSO Breakouts: "Second, there is a lot of interest being generated by technical breakouts in the U.S. by MSOs (multi-state operators)," Brochstein said.
"GTI, Trulieve and Curaleaf have all posted 52-week highs, while Cresco has moved to a new high since before the March sell-off."
Chicago-based Cresco Labs reached a high of $5.12 per share on Tuesday. GTI reached a 52-week high of $13.67 while Trulieve reached $16.75.
Curaleaf's 52-week high was $8.50 on Tuesday afternoon.
The U.S. cannabis market is expected to grow from $12 billion in 2019 to $31 billion by 2024, according to analysts. The Canadian cannabis market will likely expand from $1.6 billion in 2019 to $6.2 billion by 2024.
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