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Cannabis Stock News: Looking at Potential Projections for 2020

 

December 17, 2019 (Investorideas.com Newswire) With 2019 coming to a close, investors are looking to the future of cannabis to determine today's actions. In 2019, marijuana stocks have taken a bit of a hit, and many investors have pulled their investments. There are several reasons for this. As the marijuana industry achieves maturation, some investors have taken the brunt of hiccups along the road, including bad press and scandals.

Aphria, Namaste Technologies, and CannTrust Holdings have all already experienced their share of scandal. CannTrust was recently issued a noncompliance from Health Canada, and admitted to growing and selling cannabis from five unlicensed rooms for nearly a year.

Because of this, Health Canada placed a hold on nearly 11,500 pounds of dried cannabis. On the day of the announcement, CannTrust shares plummeted 22%. Currently, they may be the first cannabis company to be delisted from the stock exchange.

Despite these struggles, however, there's some light at the end of the tunnel. These challenges have resulted in more feasible market valuations, making it an opportune time to buy and hold.

Beginning on January 1st, Illinois will open its doors to cannabis for recreational use-the second most populated state to legalize, trailing behind California. Chicago-based marijuana operator Cresco Labs could see a great year for growth because of this. The company has already received approval to move its its MedMar Lakeview dispensary near Wrigley Field, where they'll see plenty of foot traffic from local and out-of-state visitors.

With cannabis legalization spreading across North America, it's clear that investors in it for the long-term could very well reap the benefits for early investments. All 10 states who have adopted cannabis legalization did so within just 10 years, and you can expect the trend to continue.

Cannabis startups are also on the rise, and investors are funneling dollars into innovative companies that show promise. In 2018, venture firms invested $3.5 billion into cannabis startups, up from the year prior. Wall Street analysts predict the cannabis market in the United States could be as much as $194 billion by 2030, and entrepreneurs are vying for early entry into a growing sector.

Both consumer cannabis startup and cannabis tech startups are seeing a rise in interest, though tech startups are garnering an increasing amount of interest, and early-stage startups are seeing a bulk of that money.

Baker dubs itself as the Salesforce of cannabis; Flowhub is a seed-to-sale software platform for growers; and CannKorp developed a pod-based vaporizer system that acts like a Keurig for weed. Each of these startups are leveraging modern tech through DevOp tools from companies like jFrog, taking advantage of incubator programs, and getting involved in deep research efforts.

Furthermore, Mexico is slated to become the third country to legalize marijuana on a national scale, and would be the first third-world country to do so. The legalization of recreational marijuana in Mexico has been entirely mandated by the Supreme Court, and Congress has until the end of April to set regulations that pave the way for a legal retail market.

The 2020 elections could also have a major impact on the future of cannabis legalization, with the majority of Democrats in favor of legalization at a federal level. "When you go from an illicit market to a legal market, we try to think about market opportunity," CFRA senior equity analyst Garrett Nelson told Yahoo Finance. ""The U.S. is about a $50 billion market right now. Over the next 15 years, the market doubles to $100 billion in the event of full legalization."

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