MedReleaf Corp. (TSX:LEAF) is the latest cannabis stock to hit the TSX. The stock initially got an unpleasant smack in the face since the IPO happened last Wednesday in the midst of a nasty industry-wide sell-off. At the time of writing, the stock rallied back to around its IPO share price of $9.50.
Could MedReleaf be the spark to reignite the second wave of the green rush? Or will it become a victim of a sell-off ,which appears to still have a lot of negative momentum?
Cannabis stocks are still incredibly risky and volatile, but I like them better now than when they were soaring to wicked new highs. The entire industry was in a bubble, and it inevitably popped. But now that cannabis stocks are back down to more reasonable levels, investors should still be cautious, as volatility and headline risk are still present.
MedReleaf is Canada’s second-largest cannabis stock by market