With every new expanding industry comes a host of investors who are ready to cash in on the budding business. There's no exception when it comes to the marijuana industry. As countries and states begin legalizing medical, and sometimes recreational, marijuana, more and more revenue is filtering through the industry.
So appropriately, many investors are beginning to flock - though the ones that are jumping on the opportunity already are considered fairly daring. At this point, there's a lot of risk that comes with the marijuana industry - and perhaps that fact is no better illustrated than by the story of a cannabis holding company in Canada called Canopy Growth.
Canopy Growth claims that they are the largest weed producer in the world. Located in an old Hersheys Chocolate factory in Ontario, and just last July of 2016, they started trading on the Toronto Stock Exchange. But those who have decided to invest have found that the weed industry might not be as stable as they hoped.
A few months ago, Canopy Growth, under the ticker WEED, was the most popular property on the stock market. Back in November, stocks that had started at $2 were being sold at $17. Perhaps much of the enthusiasm came from the good day at the ballot box in the United States for marijuana.
But on the same day, those $17 stocks dropped back down $10. In all likelihood, this probably came with the understanding that there are still a lot of obstacles and uncertainties when it comes to the marijuana industry. With laws unclear, regulations that still need to be put in place, and even conflicting regulations between the federal government and state governments in the United States, it didn't take long for investors to realize the complications with the industry.
But even with the major fluctuations, keen investors are still hopeful for the industry. The Motley Fool Canada's chief investment advisor says buying into weed today is like "buying Amazon in 1997", and analysts at Seeking Alpha said that Canopy is likely the best long term investment in marijuana out there.