Yahoo Finance 3 Weed Stocks That Increased 10-Fold Since Their IPOs
The cannabis industry is going through a whirlwind in the present. Investors in the sector are on a roller-coaster ride. The prices of weed stocks soar at times but go haywire in many instances. There’s so much unpredictability that it’s difficult to stay invested in one and not worry about losing money.
However, if you look at the past and review cannabis companies Canopy Growth (TSX:WEED)(NYSE:CGC), Aurora Cannabis (TSX:ACB)(NYSE:ACB), and HEXO (TSX:HEXO), you’ll be astonished by how the respective stock prices have increased 10-fold since the companies’ IPOs.
Canopy
Only April 4, 2014, Tweed Inc., or the company that is now known as Canopy Growth today, listed on Toronto’s TSX Venture Exchange. Many were not keen, especially the federal government, on the first weed stock and the cannabis industry as a whole. Thereafter, Canopy Growth decided to uplist to the TSX.
It was during that period when the country licensed the first commercial growers. The licence was granted so that patients or users can use marijuana for medicinal purposes. But then CEO Bruce Linton saw the great potential in the cannabis industry. He had grand dreams of the company lording over a billion-dollar industry.
On the day Tweed debuted on the TSXV, the stock closed at $2.59. In September 2015, the name was changed to Canopy Growth. The stock has thrived since. Five years later on April 4, 2019, the stock was trading at $57.72, or an increase of 2,128.6%. As of July 5, 2019, WEED closed at $52.63.
Aurora
Aurora Cannabis is also a graduate of the TSXV. The specialty and generic drug manufacturer debuted on the exchange on October 5, 2016, under the ticker symbol ACB. The shares were eventually delisted from the TSXV on July 24, 2017, with the commencement of trading on the TSX.
The price of Aurora Cannabis on the first day of trading was $1.78 on the TSXV. On the first day on the TSX, the price was higher by only 53.37%. As of July 5, 2019, ACB finished the trading session at $9.86. If you had been one of the early investors, your money would have grown by a whopping 453.92% today.
Hexo
Among the three weed stocks, HEXO is relatively new on the TSX. The healthcare stock is a co-graduate of Canopy Growth and Aurora Cannabis on the TSXV. HEXO, under its previous name Hydropotherapy, began trading on the TSXV on March 21, 2017. On June 22, 2018, the company commenced trading on the TSX.
When the company launched the HEXO brand in August 2018, the name was changed to HEXO Corp. As to the stock performance, HEXO was of one the high flyers on the TSX during the first half of 2019.
The stock price during the TSXV debut was $1.82 and rose by 196.15% to $5.39 on the first day at the TSX. As of July 5, 2019, HEXO is trading at $6.81, or an amazing rise of 274.17% from the IPO listing.
Clearly, for investors who’d invested in the three since inception and sold the shares today, the winnings are astronomical.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned.
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