The Canadian cannabis industry has been on a tear over the past year, with stocks soaring to all-time highs. If Germany legalizes marijuana in 2019, expect the momentum to continue. so investors should keep their eyes peeled for more opportunities this summer and into 2020.,

The “cbd stocks to watch” are Canadian marijuana stocks that are looking strong. Germany is currently debating whether or not to legalize marijuana, and if they do, these stocks could have a big impact on the industry.

Canadian Marijuana Stocks Look Strong if Germany Legalizes Pot

Canadian-Marijuana-Stocks-Look-Strong-if-Germany-Legalizes-Pot

One factor may determine the long-term fate of Canadian marijuana stocks.

You may have noticed that I’ve lately joined the marijuana stock bandwagon in the United States.

And it’s not without cause. Curaleaf Holdings Inc (CNSX:CURA, OTCMKTS:CURLF) and Innovative Industrial Properties Inc (NYSE: IIPR) are two of my favorite marijuana stocks in the United States.

Having said that, there’s still a chance that Canadian marijuana stocks may skyrocket in the near future. Indeed, Canadian marijuana companies may be able to outperform US marijuana stocks, but it all hinges on one question: Will European nations or other overseas markets legalize marijuana before the US?

What is the significance of this?

Because, despite their popularity in the United States, marijuana stocks are still prohibited in the country.

Curaleaf stock and other high-earning marijuana companies in the United States are doing very well, yet none of them are traded on major American markets.

What’s up with that?

They won’t be able to trade on US stock markets until marijuana is legalized on a federal level in the United States.

The New York Stock Exchange (NYSE) and the Nasdaq both restrict corporations from listing on their markets if they offer things that are illegal in the United States. Marijuana is now outlawed in the United States.

Of course, this isn’t strictly enforced; the federal government has left states to determine whether or not to deal in marijuana on their own.

To mention a few hurdles, the federal prohibition has kept institutional investors out of the marijuana sector, marijuana stocks from being listed on major U.S. stock exchanges, and marijuana firms from accessing significant pools of cash and depositing their money in banks.

The federal ban hasn’t prevented a winner like Curaleaf Assets Inc from amassing significant holdings in the United States and becoming one of the world’s most profitable marijuana firms. However, it prevents it from growing internationally.

I recently wrote on Germany’s prospective marijuana legalization. If that happens, we should anticipate a surge of investors eager to profit from Europe’s biggest market’s millions of potential legal marijuana users.

This would enable Canadian marijuana firms to invest in the German market (many already have stakes there), enabling them to develop quickly. This may send cannabis stockpiles in Canada surging.

Furthermore, Canadian marijuana firms would be able to accomplish all of this with little or no rivalry from their American counterparts.

As a result, Canadian marijuana businesses may basically take advantage of the expanding market, while American marijuana businesses are stuck waiting for government legalization in their own nation.

To be honest, American marijuana firms have an edge in that they can expand into any state in the United States that has legalized marijuana, but Canadian marijuana companies have a tough time doing so. Because Canadian marijuana firms do not sell their goods in the United States, their stocks are listed on major U.S. markets.

When several of the top Canadian marijuana stocks sought to be listed on the Nasdaq or NYSE, they had to sell their U.S. assets to meet the exchanges’ requirements.

As a result, marijuana stock investors face a conundrum: Canadian marijuana firms are searching for worldwide markets to open up, while American marijuana companies gain from individual state legalizations in the United States.

While some big states in the United States have yet to legalize marijuana, they would be unable to compete with the combined prospects of the EU and other foreign markets.

That isn’t to predict that marijuana will be legalized in Europe or other overseas markets very soon. In reality, it’s unclear which nations will be the first to legalize marijuana. Having said that, Germany seems to be closer than it has ever been, and if it does make a step in this direction, Canadian marijuana stock investors will certainly profit handsomely.

Stocks from CGC and ACB

Canopy Growth Corp (NYSE:CGC) and Aurora Cannabis Inc are the two marijuana firms I’m watching in the run-up to probable German marijuana legalization (NASDAQ:ACB).

Both marijuana firms currently have operations in Germany, providing them an advantage over the competitors when it comes to entering that market.

Canadian-Marijuana-Stocks-Look-Strong-if-Germany-Legalizes-Pot

StockCharts.com provided the chart.

While both Canopy Growth and Aurora Cannabis have seen recent weakness, they’ve also seen enormous gains since COVID-19 no longer looks to be the world-ending menace it was at the outset of the epidemic.

Both CGC and ACB shares are now cheap in my perspective (or at the very least, they are selling at fair levels and might experience surges even if Germany does not legalize marijuana).

However, if Canopy Growth Corp or Aurora Cannabis Inc are able to leverage their present German roots into a piece of the pie when that nation legalizes cannabis, their stock values might skyrocket.

If Germany legalizes marijuana, both Canopy Growth and Aurora Cannabis shares, in my opinion, have a wonderful potential to achieve some big share-price increases.

The best approach to profit from this possible opportunity is to keep an eye on the developments in Germany and observe how Canopy Growth Corp and Aurora Cannabis Inc react.

A bold move into the German market might pay out handsomely.

Expert Opinion

While I think the marijuana industry’s future rests in the United States, it doesn’t imply Canadian marijuana stocks are doomed.

Quite the reverse, in fact.

While the United States continues its federal marijuana prohibition, Canadian marijuana firms are well positioned to benefit from worldwide marijuana legalization.

This provides Canadian marijuana entrepreneurs more time to establish themselves over the world, while American marijuana companies are limited to their own nation.

This advantage, if used correctly, could be enormous for investors of Canadian marijuana stocks.

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