How the Volatility of the Cannabis Market Affects Stocks

The legalization of the cannabis market across various countries has made the market more accessible than ever. The volatility however of such a new market has meant that there has been a lot of ups and downs when it comes to pricing. Canada has for some time now, been the hotbed of the cannabis industry, and as such, some stocks have presented themselves and less volatile options to the market as a whole.

Many investors have shared a similar standpoint on the cannabis industry for some time now given the legislation factor, but as the market is able to stabilize, so are investors opinions on the industry.

One of the most popular investments that people in the industry have been looking at has remained Aurora Cannabis Inc. (OTC:ACBFF). Aurora has remained incredibly strong for some time now as one of the largest cannabis stocks in the world. The company also recently acquired the company MedReleaf in one of the largest acquisitions in the industries history. This acquisition put their growing capacity at well over half of a million kilograms per year. This has meant that the company has been working to take some of this production into the international space as well. These international expansion plans have also been a large factor to market growth over the past few years.

The company also stated that they have a large interest in partnering with the beverage distributor, Molson-Coors. They stated that “we’ve said specifically we’re interested in the infused beverage space and we do intend to enter that market.”

Next on the list is the company Kush Bottles (OTC:KSHB). Kush Bottles has proven to be a safe investments for individuals not looking to see a high amount of volatility in their portfolio. The company is not a pure cannabis company in terms of growing the cannabis plant, however, they have satisfied a large portion of the ancillary market in the industry. The company produces packaging, supplies, and tools for the cannabis industry and the individual user which has meant that they have a large market share when it comes to accessories. Kush Bottles has also seen their revenue shoot up by as much as 117% just this year, which means that they can use this larger capital to continue growing their business. One report states that “Recent acquisitions extend Kush’s reach into branding, design, and distribution. Diversity and innovation are playing a major part in Kush Bottles’ portfolio, a strategy that might just pay off by year’s end.” Being able to access all of these different parts of the market has made it extremely easy for the company to continue growing, but that does not come without challenges ahead. For now, Kush Bottles continues to be a solid and safe investment for those looking to begin their journey into the cannabis market.

The cannabis industry has remained extremely lucrative for some time now, but many of these companies continue to come to the forefront of the market. This has made competition very fierce, but that altogether makes a solid case for investors. As we move toward the future of the industry, it seems as though the market on cannabis will continue to provide investors with an interesting place to put their money. The hopes are high that over the course of the next few years, legislative issues can be dealt with, and the market can begin to settle down and reach somewhere near its full potential. Only time will tell how these companies will continue to move toward this common goal.