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Looking Past Marijuana Stocks to Find Others That Will Benefit

Over the past year, investors in Canadian marijuana companies have had a lot to be excited about. Starting with the explosion in prescription sales and then the announcement of the legalization of the substance across the country, Canada is primed to become a North American leader in this industry.

Over the past year, investors in Canopy Growth Corp. (TSX:WEED) have done very well, experiencing a return close to 150% as of this past Friday’s closing price. Shareholders of Aphria Inc. (TSX:APH) did even better with a return in excess of 300%.

Although many investors have done very well by investing directly in the cannabis industry, not everyone has made out as well as the early investors. Having reached a 52-week high of $17.86, shares of Canopy Growth Corp. have since pulled back to a price near the $8 mark. Shares of Aphria Inc., which hit a high of $8.77, are now trading at a price closer to $5.50. The key lesson investors need to learn is that the marijuana industry is very volatile.

For investors looking to profit from the growth in the industry without investing directly in the volatile securities themselves, the question becomes, “Where do I go?”

The good news for those looking to profit from the legalization of marijuana without investing directly in the industry is that it may be much easier to do than expected. Given that legalization in Canada is coming at a time when many U.S. states have yet to join the club, there is a very large opportunity for investors to profit from the increase in tourism. Although visits will most certainly be day trips only, the availability of the substance may make it a little more attractive for tourists to make the trip north of the 49th parallel.

Enter Alimentation Couche Tard Inc. (TSX:ATD.B). While most Canadians are already familiar with the company’s footprint and product offering, it is important to note that for travelers, the gas station is sometimes a best friend. When travelling several hours in a vehicle, it is not uncommon to stop for a few minutes and use the facilities or purchase refreshments. Investors need to take note.

For those doing overnight trips, the incidentals, like a forgotten toothbrush or toothpaste may lead to a trip to the local Dollarama Inc. (TSX:DOL), to replace a small item or to pick up some munchies should any tourist feel peckish during their trip. It would seem there are a lot of possibilities.

Although the assumption of an increase in tourism is not a given, it is important to remember the events in the state of Colorado, which was the first state to legalize marijuana. In Canada, it may be a similar situation as a significant number of people coming from the U.S. to enjoy the country while enjoying what will become a legal product.

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Fool contributor Ryan Goldsman has no position in any stocks mentioned. Alimentation Couche Tard is a recommendation of Stock Advisor Canada.

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