Today, news broke that NASDAQ will host the first listing of a cannabis company in the US stock market! As early as tomorrow (Tues, Feb 26th), the Cronos Group (currently listed on the Toronto Stock Exchange under the ticker MJN), will open up for trading via NASDAQ with the ticker CRON. The Group has already seen a bit of a spike in value on the TSE since this morning’s announcement.
This is obviously exciting for micro-investors like myself, but think about a couple of interesting dynamics at play here that might cause less of an inflation in price than you’d think:
- Marijuana is still federally illegal in the US and thus there may be some stigma around investing in its stock.
- Though it isn’t the easiest thing to do, investing in Canadian stocks from the US is actually legal and totally permissible so many American investors (at least those who have researched with enough interest and put up with the clunky interface of the TSE and other exchanges) have already thrown down on these.
- This has eyes on it now and may get a bit hyped. Given the spike in price that’s already occurred, you may find a better sleeper org elsewhere on the Canadian exchanges that have yet to pump. That’s not to say you won’t make any money on CRON, but as an investment we may be a little behind others. Wake up early tomorrow, slam some coffee and feel it out. Cronos Group is licensed in Canada and approved for the almost-legal recreational market there. They also have some international operations, like an Australian subsidiary and some developments in Israel where they’re working to get ahead of medical cannabis manufacturing & distribution, so there’s certainly groundwork for them to make some impact and grow in value.
Here are some other dope Canadian stocks that might fit well in your portfolio, should you choose to take the plunge in the international market.