For the past several years, Swedish investors have been obsessed with trading stocks on the Bitcoin market, biometric sensor technologies and 3D printing. But, seemingly out of nowhere, a new craze has emerged on the Swedish stock exchange: marijuana stocks, particularly marijuana stocks in Canada.
For those following the global marijuana stocks and sales industry, this Swedish craze for North American pot stocks is not entirely unexpected.
More countries and states are rolling back old drug policies to make way for legalized medical and recreational cannabis. As long as marijuana legalization is underway, the money will follow on the stock market. With the recent acquisition of CanniMed Therapeutics by Aurora Cannabis and the latter company trending on the stock market at the close of last year through the beginning of this year, marijuana stocks successes are harder to ignore. In January, the list of the 10 most traded stocks on Nordnet reflected this explosion of Swedish interest, with the inclusion of Aurora Cannabis and Canopy Growth Corp.
While it’s true that Sweden may be among the last countries joining in the widespread legalization of marijuana, even their local pot related stocks have reflected the reefer trend.
Swedish company, Heliospectra AB, which provides specialized lighting systems for plant growth, has seen soaring shares since the beginning of 2018. Whether this trend continues or proves fleeting remains to be seen, but for now, stock values continue to rise.
Joakim Bornold, a savings advisor with Nordnet AB (online banking for brokers), explained the suddenness with which Heliospectra was swept up in the craze as similar to “the so-called Klondike thesis.” He continued, “It’s not the gold diggers that make the money, but the people selling the spades.”
Ultimately, Bornold said it will be up to the Swedes to decide the ethics of investing in marijuana stocks as well as assess what he views as high-risk investing, booming as the industry may be.
Bornold wondered at the discrepancy between the Swedes’ readiness to legalize the drug and their obvious willingness to invest money in it, though he believes the crazed trading of cannabis stocks will not go on much longer in the country, at least not at this level.
Even outside of Sweden, pot stocks in Canada took a plunge while shareholders engaged in panicked trading last Friday. The aforementioned Aurora Cannabis and Canopy Growth Corp, leading the industry in pot stock values in January, tumbled nearly 40% in value on Friday.
Some investors see this drop in the market as the low point with the expectation MMJ stocks in Canada will soon stabilize.
With more Canadian cannabis growers proceeding with ambitious expansion plans – Village Farms and Emerald Health Therapeutics, in particular – the industry seems to still have ample room for growth within companies and the pot stock market. Whether or not a likely stabilization means the share values will rise to their former peaks is a question for investors to grapple with as they consider which marijuana stocks to invest in as they move forward.
(For more information about the hottest marijuana stocks in Canada, read 10 Canadian Marijuana Stocks to Watch in 2018.)