Institutional Investors Warm to Marijuana Stocks as Valuations Correct


Marijuana stocks have rapidly become the biggest influence on the TSX Venture. Marijuana stocks now determine whether the exchange rises or falls. On March 30th we wrote,

“Valuations in the marijuana sector depend on future foreign and domestic government policy and timing of that regulation. Because of this, volatility is always one policy delay away.

While medical marijuana has been legal for a few years in Canada, questions remain on the recreational side, specifically in regard to zoning of where sales can be made and timing of regulation.

A vote to determine the fate of nation-wide recreational marijuana legalization takes place on June 7th.”

Charles Taerk on Institutional Participation in Canadian Marijuana Market

Charles Taerk, CEO, Faircourt Asset Management highlighted the participation of retail and institutional Canadian investors in the weed space. April continues to be a month of stabilization after steep declines in February and March.

Taerk explains the current prospect marijuana stocks provide,

“You’re seeing a lot of investors having an opportunity to invest in a sector that didn’t exist a year ago. And, so, how many times in your lifetime do you get to invest at the ground floor of a brand new industry.”

On institutional money entering the space, Taerk notes,

“There’s more institutional money going into the sector now than say a year ago. But, the sector is still very controlled by retail investors.”

Watch the video to learn more about where leading marijuana issuers are heading in the coming quarters. Like all new industries, a period of consolidation is exposing stocks that may have had perceived opportunity, with those who are achieving and laying the foundation for success. Check out Must Read for Marijuana Investors, published on to find out why Canadian marijuana expertise must export abroad.