Picking marijuana stocks with buy-and-hold appeal

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Tilray and Canopy Growth are both good examples of buy-and-hold stocks

Picking a marijuana stock is a risky business. One way to mitigate the risk is to look for stocks that have buy-and-hold appeal. While the value of all cannabis stocks is currently built on hope and speculation, a few companies in the market make a more solid case for long-term investment.

The top example of a stock in the volatile and highly speculative marijuana segment that has been more stable than the rest is Tilray. The British-Columbia-based company is making a lot more than hollow promises.

Tilray shares spiked last Friday by 31 percent following the resignation of U.S. Attorney General Jeff Sessions. The gain is evidence that many investors are aware of Tilray’s unique position in the market that would allow it to capitalize on marijuana legalization in the United States.

Though Tilray has seen numerous highs and lows in its stock value since July, it has a distinct appeal as a long-term investment.

Another leading example of a buy-and-hold marijuana stock is Canopy Growth. Currently the largest cannabis company in the world, Canopy Growth is already a dominant force in Canada with multiple international extensions. For now, Canopy’s expansion efforts are not reflected in its bottom line.

Canopy Growth became a favorite among hopefuls backing the emerging alternative beverage market when it partnered with Corona beer maker Constellation Brands in August. However, the company has over 2.4 million square feet of space to run its growing operations with the potential to more than double that amount in the next year.