Curaleaf's Hostile Takeover Bid for Aurora Is Just the Tip of the Iceberg for Cannabis Consolidation. These 2 Stocks Could Be the Biggest Winners.
After a huge gold rush, the marijuana sector stumbled, and now consolidation is gaining momentum.
Overview
Investors were very enthusiastic when cannabis stocks first started trading. It was, basically, a new industry, and the outlook for legal cannabis sales was strong. But, as is typical on Wall Street, a gold rush mentality took hold, and the market was flooded with marijuana stocks. While the cannabis sector has grown, individual company performance hasn't lived up to investors' lofty expectations.
With marijuana companies' shares generally far below their early highs, a shakeout is taking shape. Weak players are going away, and stronger players are bulking up. Acquisitions are a big part of the story, with Curaleaf (OTC: CURLF) recently unveiling an unsolicited bid for Aurora Cannabis (NASDAQ: ACB). Here are the companies that could be the biggest winners.
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Originally published at www.fool.com.