Canadian marijuana company Aleafia Health Inc. (TSX: ALEF) is currently bucking the trend of declining pot stocks in the mid-year market. The stock has climbed more than 25% in the last five days, after having a disappointing start to the year. Unlike many of the high profile marijuana stocks of today, Aleafia has received confidence from investors, largely due to a new export license.
Aleafia announced on Tuesday that it had received export permits from Health Canada, which will allow it to send its products to be sold in the Australasian market. The company also received equivalent permits from the Australian Department of Health.
Global expansion is the key to sustainability for marijuana companies, which is what makes this latest announcement so important. Governments around the world are relaxing recreational and medical marijuana laws. The company that can establish international brand presence will benefit in the years to come. According to a recent report from Stifel Financial Corp., the global cannabis market will be worth $200 billion within the next decade.
Aleafia is a microcap stock and is priced accordingly. This isn’t a strong bet for the short term, but it’s the kind of stock that could strengthen an alternative portfolio focused on long term growth in the legal cannabis sector.
- 1 Year Price Growth: 86%
- YTD Price Growth: -5.59%
- 5 Day Price Growth: 17%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.