It’s been 24 hours since the government’s federal task force announced recommendations for legalizing recreational marijuana.
CKNW’s Business Analyst Michael Levy say marijuana stocks have skyrocketed at Canada’s four biggest marijuana companies.
“Aphria, Canopy Growth Corp, Emerald Health Therapeutics, and OrganiGram Holdings – they went up yesterday between three and 12 per cent. A couple of the bigger ones were up eight or nine per cent.”
Levy says mainstream stocks would normally trade at 18 to 23 times its earnings, Canopy growth corporation is trading at 46 times its earnings.
But be careful if you’re thinking about investing.
“Some analysts are saying this market looks bubbly, like a stock market bubble, and if those bubbles inflate too fast then they can pop.”
Levy says stocks may go up or down depending on when or what announcement is made next by the federal government.