TO CLOSE

Canada becomes the newest country to legalize marijuana. The lawyers hope the legislative launch will spread around the world.
USA TODAY & # 39; HUI

Marijuana plants are growing at the medical marijuana clinic at the Northwestern Patient Resource Center on Wednesday, October 10, 2012 in Seattle. Washington State is poised to become the first in the country to allow adults over 21 to buy taxed and inspected marijuana in state-approved stores. Proponents of the 502 Initiative believe that allowing the sale of recreational jars could make drug laws a little more reasonable, prevent thousands of arrests each year and bring back to Washington hundreds of millions of dollars. dollars to help pay for schools, health care and basic government services. (AP Photo / Ted S. Warren) ORG XMIT: WATW101(Photo: Ted S. Warren, AP)

Investors are buzzing about pot stocks.

Marijuana use for recreational purposes is now legal in Canada, a move that, according to Wall Street lawyers, equals the end of the prohibition in the 1930s in the United States that legalized the sale of beer and beer. alcohol after a ban of nearly 15 years.

As a result, weed inventories were all the rage this year as investors, both at home and north of the border, sought early entry into nascent but speculative trading. A convergence of factors, ranging from legalization in Canada, to the growing use of the pot for medical purposes and to major investments by major companies like brewer Corona Constellation Brands, has propelled investment in the pot of marginally.

Investors hope to profit from a new market that generated $ 8.5 billion in legal marijuana in the United States last year and is expected to reach $ 23.4 billion in 2022, according to Arcview Market Research and BDS Analytics .

Nevertheless, investors must be careful not to tire of these investments, whose parabolic increase this year has been compared to the cryptocurrency boom. Bitcoin, the best-known digital currency that reached $ 19,501 last year, has collapsed, losing two-thirds of its value this year to $ 6,508.

Here are some stocks and funds to keep on your radar:

Tilray

The actions of Tilray (TLRY), the Canadian company that cultivates and distributes medical cannabis and cannabinoids, have been a big hit this year. Since it began operations in July as a US public company at Nasdaq, it has increased by more than 800%. But it fell 4.4% Tuesday and is down nearly 7% Wednesday in pre-market trading.

Cronos Group

Toronto-based Cronos Corporation (CRON) sells medicinal and recreational herbs. He calls his pot for recreational use "Spinach". Cronos shares have increased by almost 50% this year. In pre-trade trading on Wednesday, they were down more than 5%.

More: Why marijuana stocks could mean ups and downs for early investors

More: How to buy legal marijuana in Canada by mail or in person if you are an adult

Cover growth

Canopy Growth (CGC) is another Canadian company focused on the sale of medical cannabis. Its products, which include oils, softgels and hemp, address issues such as chronic pain, seizures and nausea. Its shares have risen more than 130% this year, despite a fall of nearly 7% Tuesday. Shares were down more than 2% in pre-market trading on Wednesday.

Aurora Cannabis

Aurora Cannabis (ACB / Canda), a licensed producer of medical marijuana in Canada, has seen its shares climb by more than 510% since its 52-week low from October 2017 to the highest point ever. d & # 39; yesterday. Nevertheless, the stock sold a large portion of these gains and increased by 46% in 2018.

ETFMG Alternative Harvest ETF

Investors who want to invest in a broad basket of weed stocks can do so through the ETFMG Alternative Harvest ETF (MJ). This exchange-traded fund is up 3.1% in 2018.

Read or share this story: https://www.usatoday.com/story/money/2018/10/17/pot-stocks-canada-legalizes-marijuana/1668186002/