Whether you realize it or not, you’re a witness to history. Just two weeks ago today, Canada lifted the curtain on nine decades of recreational marijuana prohibition and became the first industrialized country in the world to allow adults to legally purchase cannabis for personal use. It’s a sign of the changing tide on cannabis, and it should bring in billions of dollars in added annual revenue for the legal Canadian industry.
From micro caps to large caps, and direct players to ancillary companies operating behind the scenes, marijuana stocks have benefited from legalization across the board. Since 2016, many have seen their share prices catapult higher by a four-digit percentage, rewarding investors who had the stomach and wherewithal to stick with pot stocks through some very volatile times…
The first marijuana stock just went up in smoke
But as investors, we also know that as fast-growing industries mature, winners and losers will emerge. It may appear that every pot stock has a plan for success now, but history suggests that quite a few will simply miss the mark. On Monday, we may have witnessed our very first marijuana stock go up in smoke: India Globalization Capital (NYSEMKT:IGC).
India Globalization Capital recently made headlines when its share price skyrocketed by more than 1,300% between Sept. 14 and Oct. 2, following the announcement that it planned to introduce a branded line of hemp- and cannabidiol-infused beverages. Cannibidiol, or CBD, is the nonpsychoactive component of the cannabis plant best known for its perceived medical benefits. Ram Mukunda, CEO of India Globalization Capital, pointed to estimates from Grand View Research as his motivation to push IGC, as the company is also known, into the energy drink market. Grand View Research estimates energy drink revenue will reach nearly $85 billion globally by 2025.
The announcement from IGC followed a slew of press releases and rumors that…
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