A strong start to Q1 earnings season and optimism that the U.S. and China will avoid a full-blown trade war has helped stocks rebound from early-April volatility over the past week and a half, renewing investor confidence around the world.
Fresh bullishness over the past few trading periods has inspired positive trading in several key global markets. But interestingly enough, a number of optimistic headlines in the budding marijuana industry has led to an even stronger recovery in this popular investing area.
Canadian marijuana stocks witnessed a massive selloff at the beginning of the month after industry bellwether Canopy Growth Corp (OTCMKTS:TWMJF) failed to defend its 50-day moving average.
These trendy companies are followed by active traders with formulaic strategies, so technical events like this can cause plenty of movement.
But investors who take this market seriously understand that there are a variety of diverse options to focus on. With this in mind, let’s take a closer look at how a few popular stocks with exposure to the marijuana industry have performed over the past few weeks.
Marijuana Stock Charts That Are Simply Smokin’: Cronos Group Inc (CRON)
Cronos Group Inc (NASDAQ:CRON) became the first pure-play medical marijuana company to list on an American exchange when it debuted on the Nasdaq in late February. The firm invests in companies that are licensed to produce and sell medical-grade pot. Here’s how the stock has performed over the past two weeks:
CRON has clearly been on fire lately, and that might be because the stock is finally starting to see legitimate, bullish analyst coverage.
In fact, about a week ago, Cronos shares received their first upgrade since the company debuted on the Nasdaq, with Toronto-based investment bank GMP Securities raising the stock from hold to buy.
Marijuana Stock Charts That Are Simply Smokin’: Innovative Industrial Properties Inc (IIPR)
Innovative Industrial Properties Inc (NYSE:IIPR) is a REIT focused on the acquisition, ownership and management of specialized industrial properties for medical-use cannabis facilities.
IIPR has also generated some solid momentum over the past two weeks. Investors are likely excited about the company’s recent acquisition of an 89,000-square-foot facility in Pennsylvania, which was announced last week.
The deal included a new tenant relationship with Vireo Health, a cultivation and medical dispensary business.
Marijuana Stock Charts That Are Simply Smokin’: GW Pharmaceuticals PLC (GWPH)
GW Pharmaceuticals PLC (NASDAQ:GWPH) is a U.K.-based biopharmaceutical company that is developing cannabinoid treatments. The firm sticks out from the above stocks because its stock behaves much more like a traditional research biotech than a weed-focused REIT or investment fund.
GWPH has started to pick up pace as investors gear up for the FDA to approve its cannabis-based anti-seizure drug, Epidiolex.
The regulatory body is meeting this week to discuss the benefits and risks of the treatment, and if that conversation goes well, it will consider approving the drug on June 27.
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