Cannabis earnings season just got off to a great start, with one of the world’s largest cannabis companies reporting a big surprise. That sent shares of this early global leader up by 26% in just one day.
Here’s the good news – the COVID economic recovery is booming. First-quarter U.S. gross domestic product (GDP) growth came in at 6.4%, putting the U.S. economy on pace for its best year of growth since 1984.
The bad news? Inflation is soaring. In fact, it just hit a 13-year high. Here are some more details from Reuters.
In the 12 months through June, the CPI jumped 5.4%. That was the largest gain since August 2008 and followed a 5.0% increase in May. Excluding the volatile food and energy components, the CPI accelerated 0.9% after increasing 0.7% in May. The so-called core CPI surged 4.5% on a year-on-year basis, the largest rise since November 1991, after advancing 3.8% in May.
When a stock is up 568% in 12 months that usually a good time to lock in some gains. However, the cannabis sector just created an exception.
GrowGeneration Corp. (NASDAQ: GRWG) is the largest retailer of specialty hydroponics and cultivation materials in the U.S. GrowGen currently own 55 stores, which include 20 locations in California, eight locations in Colorado, seven locations in Michigan, five locations in Maine and Oklahoma, two locations in Nevada, Washington, Oregon, Arizona, Rhode Island, Florida, and Massachusetts. GrowGen also operates an online superstore for cultivators. Continue reading “Up 568% in 12 Months and More to Come?”→
Cannabis stocks eked out a small gain in the first half of 2021. But the path to that small gain was quite bumpy.
The sector was on fire early in the year after the Democrats took the White House and both chambers of Congress. At one point in early February, the Advisor Shares US Cannabis ETF (NYSE: MSOS) was up more than 50%.