Five of the Top Hemp Stocks to Watch in 2019
With the passage of the Farm Bill, hemp will see a significant catalyst for growth. It could see even more growth once the U.S. Department of Agriculture (USDA) introduces federal hemp rules in August 2019, speeding previous plans to roll out the guidelines by 2020. Along the way, it may just create a $39.4 billion market, says Markets and Markets, strong growth from a $10.3 billion valuation in 2018. That's opening a wide range of opportunity for companies including MYM Nutraceuticals Inc. (OTCQB:MYMMF) (CSE:MYM), OrganiGram Holdings Inc. (NASDAQ:OGI) (TSX-V:OGI), Aurora Cannabis Inc. (NYSE:ACB)(TSX:ACB), CannTrust Holdings Inc. (NYSE:CTST), (TSX:TRST) and PharmaCielo Ltd. (OTCPK:PHCEF) (TSX-V:PCLO).
Waves of CBD Beauty Products Filling Shelves of Major Retailers Across the US
Mainstream retailers across the United States are embracing the growing popularity of the nonpsychoactive cannabinoid, cannabidiol (CBD), making room for CBD products on their prominent shelves.
Craft Cultivators Glean Premium Prices as Consumers Demand Top Shelf Cannabis
Cannabis is most commonly associated with its flower form, however, innovative producers within the industry have developed new products to stand out among the competition. Specifically, in Canada, many producers are designing new products such as concentrates, extracts, and edibles for consumers. Notably, these products are much more potent and effective than traditional flower, which is why many consumers are beginning to shift towards less conventional delivery methods. Moreover, the price of flower has increased since Canada legalized adult-use back in October 2018. According to Statistics Canada, Canadians paid 56.8% more for dried cannabis in legal channels than they did from illicit sources since legalization. Following Canada's legalization, consumers were paying on average of approximately CAD 9.99 (USD 7.47) per gram compared to the illicit source prices of CAD 6.37 per gram. Health Canada noted that prices in Manitoba prices surged as high as 27.7% per gram, while British Columbia's prices increased by as little as 3.7%. Typically, the price of cannabis is directly correlated with costs of cultivation and federally or provincially mandated taxes and fees. For instance, the Department of Finance Canada states that in most provinces, cannabis excise taxes is CAD 1.00 per gram, of which the federal government collects CAD 0.25 and the province collects the remaining CAD 0.75. However, back in the 1980s, Canada implemented a tax increase on cigarettes which ultimately lead smokers to turn to the black market for cheaper alternatives. Canada ended up cutting the tobacco taxes. Similarly, the country's cannabis taxes could potentially be reduced in order to keep consumers away from the black market, as Federal Finance Minister Bill Morneau has pledged to keep taxes as low as possible to keep consumers out of the illicit market and eliminate illegal sources. Furthermore, according to data compiled by Ameri Research, the global legal marijuana market was valued at USD 14.3 Billion in 2016. By 2024, legal marijuana global sales are projected to reach USD 63.5 Billion while exhibiting a CAGR of 21.1% from 2017 to 2024. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), HEXO Corp. (NYSE-A: HEXO) (TSX: HEXO), CannTrust Holdings Inc. (NYSE: CTST) (TSX: TRST), Harvest Health & Recreation, Inc. (OTC: HRVSF) (CSE: HARV), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH)