Investors are buzzing over marijuana stocks

Investors are buzzing over pot stocks. Recreational use of marijuana is now legal in Canada, a move Wall Street pros say is akin to the end of Prohibition in the U.S. back in the 1930s that legalized the sale of beer and booze after a nearly 15-year ban. Weed stocks, as a result, have been all the rage this year as investors at home and north of the border look to get in early on the budding but speculative business. A confluence of factors, ranging from Canada’s legalization, pot’s growing use for medical purposes and major investments from big companies such as Corona brewer Constellation Brands, has shifted investing in pot from the fringe to the mainstream. Still, investors in weed stocks were bummed out Wednesday when pot stocks declined. Investors are looking to profit in a new market that generated $8.5 billion on legal marijuana in the U.S. last year and which is estimated to grow to $23.4 billion in 2022, according to Arcview Market Research and BDS Analytics. Investors, however, need to be careful not to get burned out by these upstart investments, whose parabolic rise this year has been compared to the cryptocurrency boom. Bitcoin, the best known digital currency that climbed as high as $19,501 late last year, has suffered a bust, losing two-thirds of its value this year to $6,496. Here are some pot stocks and funds to keep on your radar: ❚ Tilray: Shares of Tilray, the Canadian-based company that cultivates and distributes medical cannabis and cannabinoids, have gone on a wild ride. Since it began trading in July as a public company in the U.S. on the Nasdaq stock exchange, it has gained 771 percent. But it slumped 4.4 percent Tuesday and fell 6.5 percent Wednesday. ❚ Cronos Group: Toronto-based Cronos sells medicinal and recreational weed. It dubs its pot for recreational use “Spinach.” Cronos shares are up nearly 40 percent this year. Shares fell nearly 8 percent Wednesday. ❚ Canopy Growth: Canopy Growth is another Canadian company that focuses on the sale of medical cannabis. Its products, which include oils, soft gel capsules and hemp, treat things such as chronic pain, seizures and nausea. Its shares are up 114 percent this year. Shares fell 4.4 percent Wednesday. ❚ Aurora Cannabis: Aurora Cannabis, a licensed producer of medicinal marijuana in Canada, saw its shares rally more than 510 percent from its 52-week low in October 2017 to Tuesday’s most recent high. Still, the stock has given back a big chunk of those gains and is up 41 percent in 2018. ❚ ETFMG Alternative Harvest ETF: Investors who want to invest in a broad basket of weed-related stocks can do so via the ETFMG Alternative Harvest ETF (MJ). This exchangetraded fund is up 22 percent in 2018. Shares slumped 3 percent Wednesday.

TED S. WARREN/AP