Are your Cannabis stocks going up in smoke?

Despite all the buildup and massive media coverage, the legalization of cannabis in Canada last month was less of a bang and more of a whiff. Fueled by months of hysteria and massive expectations, the excitement for both investors and consumers was effectively doused with the reality of woefully unprepared suppliers and online delays. A lack of traditional retail presence accompanied by unfulfilled online orders left investors wondering if their predictions were going up in smoke. Although consumers were more than eager to spend, the industry was simply not ready and October 17th was more of a dress rehearsal than an opening night. Stocks with October declines – including Aurora Cannabis, Canopy Growth and Aphria - will likely experience renewed interest closer to the spring when traditional Brick and Mordor stores open and online merchants work out the kinks.

For those looking ahead to the next pot paradise, the beverage industry is frantically overhauling its 2019 plans in hopes of cashing in on the growing market. Molson is hoping to launch a cannabis-infused beer in the next year and even Coca-Cola is looking to enter the market after reports that legal marijuana will surpass the soda industry, a business already in decline.

As cannabis continues to spread its influence across industries, market watchers should exercise patience in their approach. The announcement for legalization came in June 2018 but implementation has been less then smooth and slower than expected. Though investors will likely experience more dips in performance, now that cannabis has entered the market, it will be lighting up profits for years to come.