The global media frenzy surrounding the opening of Colorado’s legal marijuana market in early 2014 set off a bull market of magnitude that is rarely seen. By my measure, the stocks that represented the cannabis space went up by more than 600% on average in ten weeks, with several 20-baggers. The rally was fueled by a mismatch between a flood of interested investors looking to get in on the “Green Rush” and the limited number of companies to buy. Ironically, none of the companies that benefited from the bubble made a single dime in Colorado. In fact, most of these companies weren’t particularly leveraged to the emerging growth of legal cannabis at all.
A year and a half later, the market has suffered a brutal downturn, losing over 90% of its peak value. At the same time, though, the industry itself has advanced dramatically, with Colorado exceeding expectations, Washington progressing and Alaska and Oregon about to implement legal use for adults. In 2016, California and Nevada voters will get a chance to weigh in. Additionally, medical marijuana program adoption continues to proliferate across the country. The “Green Rush” is very real.
Read the rest of Alan Brochstein’s article: http://stocknewsnow.com/commentary/ANEWSID09092015100003/Getting-Closer-to-Capitalizing-on-Cannabis-Alan-Brochstein
