After the massive sell-off this year the shares of cannabis companies such as Aurora Cannabis and Canopy Growth are currently trying to bottom out again. However, the smaller CBD company Veritas Farms Inc. (OTC: VFRM) gains profit. The shares of Canopy Growth gained 3.9% on its home exchange in Toronto, Aurora Cannabis even gained 4.7%. As such, analysts changed Canopy Growth’s stock to “Buy.”
In Canada and the U.S. cannabis became legal in many jurisdictions and public attitudes towards the drug are increasingly positive.
Companies like Veritas Farms Inc (OTC: VFRM) have capitalized on consumer interest in CBD. The company has significantly increased revenue year on year in Q3 2019 by more than 165% to an impressive $1,215,810.
CBD sector sees big success with top cannabis companies
Veritas Farms has its own supply chain that allows the company to control the products’ quality all the way.
The company even made it possible for the customers to check the quality status of the CBD-based products they purchase thanks to a recently released QR code packaging.
Veritas Farms is focused around honesty, transparency and delivering high-quality full-spectrum CBD products which bring tremendous results. The company is well on track to be one of the CBD sector’s big success stories.
However, the shares of other cannabis companies are currently trying to bottom out again. After the shares of Aurora Cannabis and Canopy Growth were able to achieve double-digit percentage gains in one day during the past week, the shares were subsequently forced to relinquish part of their gains.
Analysts provide hope to the cannabis industry
Canopy Growth gained 3.9% on its home exchange in Toronto while Aurora Cannabis gained 4.7%. The shares were clearly oversold recently. A positive analyst commentary from Bank of America Merrill Lynch provided hope.
Analysts have upgraded Canopy Growth’s stock to “buy.” In September, the Bank of America downgraded the value to “neutral.” Now, however, the Bank sees a buying opportunity again after the fall of more than a third.
For a sustained recovery, positive news from the sector would, of course, have to follow. There is great hope here for the U.S., among others. Cannabis could possibly be included as a topic in next year’s election campaign.
Top cannabis companies prepare for the edibles market
In addition, one should soon be able to see the effects of the second stage of legalization in Canada.
Since mid-October cannabis edibles have also been legal in the country. However, the first products on the market are expected after a 60-day waiting period.
As such, the first sale is likely to be on Dec. 17. Experts believe that this second stage of legalization will have a lot to offer. The market potential is expected to be significantly higher than for traditional products.
Canopy Growth continues to see itself very strongly positioned worldwide. However, the stock is still a long way from the first positive chart technical signal.
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