The reclassification of marijuana to a lower-risk Schedule III drug from Schedule I would allow cannabis companies to write off business expenses – a move that would boost cash flow and profits
Six under-the-radar U.S.-focused cannabis picks Shirley Won Published May 19, 2021
unknown/iStockPhoto / Getty Images
U.S. cannabis stocks have taken a beating, providing a buying opportunity for investors looking to bet on a pot boom south of the border.
Optimism for marijuana legalization pushed by top Senate Democrats helped fuel a rally until February, but the sector sold off amid market concerns about rising interest rates and owning riskier securities as well as tightened financing by some brokerages to hedge funds.
Although federal reforms may be slower in coming, the U.S. industry is growing with more states legalizing medical and adult-use cannabis and some companies on the road to profitability.
The Globe and Mail Shirley Won Published February 3, 2021
worradirek/iStockPhoto / Getty Images
Canadian small-company stocks are back in the spotlight again, helped by tailwinds in multiple sectors at the same time.
The S&P/TSX Venture Composite Index, a broad-market indicator of domestic microcap securities, surged 51.6 per cent last year versus a 5.6-per-cent gain for the S&P/TSX Composite Index, including dividends.
The venture index continued its climb in January. Resource stocks largely drove past bull markets, but technology, clean-energy, health care, cannabis and even cryptocurrency-related stocks have now joined the party.
Story continues below advertisement
Microcap stocks offer potential for multibaggers, but keep in mind that they come with higher risk. These young companies may not be profitable or have revenue yet. Management can stumble or face setbacks. Companies may not raise enough capital to grow, while financings can dilute existing shareholders.