2 of the Hottest Pot Stocks Entering 2020
This past year hasn't been a pretty one for cannabis stocks, and the Horizons Marijuana Life Sciences ETF was down more than 40% in 2019. However, not all pot stocks have been struggling, especially late in the year. From Oct. 1 to Dec. 31, shares of both Green Thumb Industries (OTC: GTII) and MediPharm Labs (OTC: MEDIF) soared 17% and 15%, respectively. The Marijuana Life Sciences ETF, meanwhile, continued to decline, losing about quarter of its value over the same period.
It's an encouraging sign for these two pot stocks and suggests there may be some bright spots in the industry. Let's take a look to see what drove those rallies and whether the stocks are likely to continue to do well in 2020.
The Illinois recreational pot market opened for business on Jan. 1, and one of the reasons investors were excited about Green Thumb late in the year was that the company announced in late December that it would have five stores ready to go and selling recreational pot in Illinois on day one. It's a tremendous opportunity for Green Thumb, as Illinois is the second-largest state, trailing only California, where pot is now legal for recreational use. Unsurprisingly, the stock would take off in the days following the announcement to end the year on a high note.
Source Fool.com