After a three-month bout of profit taking in the cannabis sector, the bottom may have finally been reached for some stocks, says analyst Javed Mirza of Canaccord Geniuty, who recommends adding exposure in the space.
But it's not all gloom and doom according to them:
But a short-term counter-trend bounce appears to be taking hold, says Mirza in a quantitative/technical overview on Wednesday. The analyst suggests adding exposure for a short-term trade idea that could turn long-term if equity markets resume their uptrends.
“From a fundamental perspective, we believe there has been little news flow to explain the magnitude of the downward move in the cannabis sector as of late and that investors could be taking profits in riskier sectors,” says the analyst.
As we've seen before, the marijuana sector does have some ups and downs, but with legalization coming around the corner, we think investors will see some major gains with the right choices.