As a summer of scandals and slumps draws to a close, we look ahead to fall and which hemp stocks could benefit the most with legalization 2.0 on the horizon.
In the 10 months since Canada legalized cannabis, many stocks have fallen from their early highs amidst numerous regulatory scandals involving some of the biggest names in the market, underwhelming consumer demand, and increasing volatility in the global markets. However, the second wave of cannabis legislation comes into effect on the first anniversary of legalization in October, which paves the way for the cannabis derivative market to really take off. So let's take a look at some hemp stocks that could be set for a big close to the year.
Charlotte's Web Holdings
Charlotte's Web Holdings Inc (TSX:CWEB) (OTCQX:CWBHF) is one stock that has generally bucked the market trend over the last few months, but it has still been prone to some wild fluctuations. Charlotte's Web has been a dominant force in the CBD market for some time but has operated in a gray area given the uncertain legal status of hemp-derived CBD. However, the passage of the 2018 Farm Act in the US and legalization 2.0 in Canada have paved the way for a more open and expansive CBD market.
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Charlotte's Web Holdings already has a huge physical presence with its products being carried in over 8,000 retail locations, which is more than double from the start of the year. CWEB stock is currently valued at $21.99, which is up 3.87%, but with the CBD market set to explode according to many analysts, don't be surprised if this hemp stock starts to skyrocket in the near future.
OrganiGram Holdings
OrganiGram Holdings Inc (TSX:OGI) (NASDAQ:OGI) has had somewhat of a bumpy year in line with the market. Climbing as much as 167% in the first five months of the year, OGI stock subsequently lost about 50% of these gains over the summer months. However, there has been some promising news for OrganiGram Holdings, particularly in the CBD market, having last month signed a deal to access 60,000 kg of hemp flower, which positions this hemp stock to really take advantage of the imminent surge in demand for CBD derivatives arising from legalization 2.0.
OGI shares currently sit at $4.28, and that could jump significantly in the latter half of the year, making this one hemp stock to really keep an eye on.
Will you get in on these hemp stocks before the CBD market takes off?
Featured image: DepositPhotos © Yarygin
