Jim Cramer on cannabis stocks
On November 15, the widely followed host of Mad Money on CNBC, Jim Cramer, gave his opinions on the cannabis industry. Cramer pointed investors to Canopy Growth (WEED) (CGC), the Canadian cannabis (HMMJ) giant, because of its backing from Constellation Brands as a result of the latter’s $4 billion investment.
What about other cannabis stocks?
Cramer also stated that Canopy Growth is “the only one you can really own and you’ve got to sell the rest.” His recommendation comes after major cannabis companies including Canopy Growth, Aurora Cannabis (ACB) (ACBFF), Tilray (TLRY), and Cronos Group (CRON) reported their earnings earlier this week.
Notably, Constellation Brands wasn’t the only alcoholic beverage company to partner with a Canadian cannabis company. Molson Coors partnered with HEXO (HEXO), a Canadian cannabis company, through a joint venture to make a cannabis-infused, non-alcoholic beverage for the Canadian market after recreational cannabis was legalized.
Cramer strongly recommended Canopy Growth and Constellation Brands as long-term players. He’s confident due to the strength in their balance sheets.
As a whole, the cannabis industry appears to be here to stay. There are several other players besides Canopy Growth that have made progress in other non-alcoholic segments, which will also be a key growth driver for cannabis companies. There are advanced clinical trials that aim to develop medical cannabis for international markets where it’s legal.
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