These “Comeback” Marijuana Stocks Are Roaring To Life (Up 23% In A Single Day)

The “dogs” of the marijuana stock sector are roaring back to life.
 
But looking ahead a few months, their future may be the brightest of all marijuana stocks.
 
Best of all, they’ve got a lot more “catching up” to do so there’s plenty of room to run.
 
Here’s the full story these marijuana “comeback” stocks, how they were left out of the marijuana boom, and why they’re coming back in a big way now.
 
Marijuana Stock Meltdown
 
The marijuana stocks I’m talking about fell with a thud at the end of last year.
 
They weren’t alone though.
 
The marijuana stock sector had been on a wild ride for the second half of 2018.
 
There was a huge run-up leading into Canadian legalization on October 19, 2018.
 
At the peak the North American Marijuana Index hit a high of 350 the day before Canadian legalization.
 
But that was also the short-term top for marijuana stocks.
 
Marijuana stocks fell hard after that historic day.
 
It wasn’t too surprising.
 
After all, the Seed Investor even warned of a “Perfect Storm” situation that could send marijuana stocks way down until late December 2018.

And that’s exactly what happened.

  

The North American Marijuana Index completely cratered between October and December of 2018.

 

It eventually hit bottom in at 192 in late December.

 

Overall, that was a total decline of 46% drop from peak to trough.

 

There weren’t many bright spots in a downswing that strong. Even the top-performing marijuana stocks were down 20% or 30%.

 

It was awful period for marijuana investors, but it was creating a great opportunity to buy in near a low again.

 
Even In Marijuana Stocks: That Which Can’t Go On, Won’t Go On

 

One of the darkest spots in the marijuana meltdown of 2018 were Canadian marijuana retail stocks.

 

Marijuana stocks were hit hard. But Canadian marijuana retail stocks were beyond hammered.

 

Just look at two of the leading marijuana retail stocks to see how they managed to make otherwise ugly marijuana stocks look good.

 

For example, Choom Holdings (CAN:CHOO / USA:CHOOF) is one of the most rapidly expanding marijuana retailers in all of Canada.

 

Choom is building retail and distribution operations throughout Western Canada and has dozens of retail locations identified and in development.

 

The company made a marijuana acquisition to rapidly expand its marijuana retail footprint just a few days ago.

 

Choom has been backed heavily by Aurora Cannabis (CAN:ACB / US:ACB) – receiving two direct investments totaling C$27 million.

 

Choom, as a company, has everything going for it.

 

Choom’s stock, on the other hand, has followed an opposing trajectory.

 

Choom shares peaked in July 2018 at C$1.47 per share.

 

They traded in that area until legalization date and then were caught in the marijuana stock downdraft at the end of last year.

 

By December Choom shares hit a low of C$0.38 per share.

 

That’s a total decline 74% from top to bottom and was even enough to outpace the 46% decline for the North American Marijuana Stock Index.

 

That’s just one example of how tough Canadian marijuana retailers have had it recently though.

 
National Access Cannabis Corp (CAN:META / USA:NACNF) is another example.

 

National Access Cannabis has 23 retail locations – 14 stores in Alberta under its Newleaf brand and nine Meta Cannabis Supply stores in Manitoba.

 

The company has hit the ground running with those stores all coming online since Canadian legalization last October.

 

It has raked in C$20 million in revenues from those stores in the first five months of legalization too.

 

National Access Cannabis has some big money backing too. The company counts marijuana giants Aurora and Aphria (CAN:APHA / US:APHA) among its direct investors.

 

Despite the fundamental performance of the company though, National Access Cannabis shares have been hit hard too.

 

After hitting a high of C$1.32 per share last July, National Access Cannabis shares hit a low of C$0.43 by December.

 

The total decline was 67% which was still far worse than the overall marijuana stock Index.

 

These were bad situations, but that’s changing quickly.

 
More Catalysts Ahead For Marijuana Retail Stocks

 

Canadian marijuana retail stocks are surging again.

 

Choom and National Access Cannabis provide the perfect example.

 

After bottoming in December, they slowly recovered. But still they lagged behind the overall marijuana index.

 

Today’s trading shows they’re catching back up in a hurry.

 

Both Choom and National Access Cannabis had big days.

 

National Access Cannabis shares were up 18% today. And this was just part of a 38% run over the past two weeks.

 

Choom shares are recovering even faster. Choom shares jumped 23% today as part of a 68% bounce over the past month.

 

Here’s the thing though.

 

These stocks are still way below their past highs.

 

Choom shares specifically could DOUBLE from here and they’d still be lower than they were last July. 

 

That’s why Canadian marijuana retail stocks may be the best buy in the entire marijuana stock universe.

The marijuana stock boom may be three years old now, but the Canadian retail industry is still in its first few months.