BUZ INVESTORS Marijuana IPO Soars It seems we can put to bed the fear that was plaguing the marijuana market following the massive drops in a lot of companies over the past few weeks. MedReleaf Corp (TSE:LEAF) was valued at $636.0 million when it went public on May 30, making the company the largest marijuana IPO ever to hit North America, and it hasn’t slowed since.
It is especially good news that LEAF stock is performing well so far, considering the downturn many marijuana stocks faced in recent days, and the belief that the marijuana bubble may have finally popped.
Since its IPO, MedReleaf has gained 25% in its share price, representing a massive surge in a short period of time. While many marijuana plays are looking to be more long-haul buys (something I’ve advocated for a while now), LEAF stock may be a short-term play, or at least, more open to short-term buy and sell action.
There’s no use repeating the gaudy sales numbers that many are projecting for marijuana. We all know about the billions in sales projected, the strong growth numbers, and the stock rush that will take place as more states and countries legalize the drug for both medicinal and recreational usage.
But for all the marijuana backers, there are marijuana doubters. That’s why the largest marijuana IPO in history is important.
While relying on projections means playing the long game, as hype and enthusiasm will lead to a repeated boom and bust cycle in the market until laws are passed and we see solid numbers, MedReleaf going public was a good reminder of the potential moves you can make on the marijuana stock market.
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