This has been a truly groundbreaking year for the marijuana industry, and it was recently punctuated with the legalization of recreational cannabis in Canada. Breaking down nine decades of prohibition, Canada’s legal weed industry appears ready to reap the rewards of what could be billions of dollars in added annual sales.
However, marijuana stocks simply couldn’t live up to the euphoria in October. Despite adult-use pot being legalized in our neighbor to the north just over two weeks ago, most pot stocks were absolutely clobbered last month. A screen of the 33 largest and/or most popular marijuana stocks turned up just three that finished the month higher. Meanwhile, 27 of the 33 ended down by a double-digit percentage, with 19 losing at least 20% of their value. We have a word for that in the investing industry: “Yuck!”
The best pot stocks in October
But, as noted, there were three standouts that smoked their competition, so to speak. Let’s take a closer look at the best marijuana stocks in October.
MedMen Enterprises: Up 29.2%
If there was a broad theme for the top-performing marijuana stocks last month, it’d be acquisitions. Companies that announced game-changing acquisitions in October tended to perform better than their peers.
The top marijuana stock in October was upscale retailer and grower MedMen Enterprises(NASDAQOTH:MMNFF), with a gain of just over 29%. MedMen announced an all-stock deal to buy privately held PharmaCann for $682 million in mid-October, which marks the largest U.S.-based cannabis deal in history.
The logistics of the deal are simple to understand. MedMen wants to grow its physical presence in legal U.S. markets, ergo acquiring PharmaCann boosts its number of licensed retail locations by 18, adds…
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