Marijuana News Today
The marijuana news today has us celebrating a strong showing by the pot stock market while two new marijuana exchange-traded funds (ETFs) prepare to hit the market.
First, let’s take a look at the new marijuana ETFs.
While there have already been a few funds available for marijuana investors to gobble up if they were so inclined, we now have a couple of new opportunities wherein investors can get leveraged and inverse exposure to the pot stock market.
BetaPro Marijuana Companies 2x Daily Bull ETF (HMJU) and the BetaPro Marijuana Companies Inverse ETF (HMJI) will begin trading on May 24.
The ETFs are both being released by Horizons ETF Management Inc, which also operates the Horizons Marijuana Life Sciences Index ETF (OTCMKTS:HMLSF, TSE:HMMJ).
“Horizons ETFs has established a leadership position in the marijuana investing space, and were the first ETF provider in the world to launch a marijuana-focused ETF,” said Horizons President and CEO Steve Hawkins. (Source: “Horizons ETFs Launches World’s First Leveraged and Inverse Marijuana ETFs,” Cision, May 21, 2019.)
“HMJU and HMJI are higher-risk ETFs that will give Canadian marijuana equity investors the opportunity to potentially generate returns in both positive and negative markets in the Marijuana sector.”
This is great news for investors in marijuana stocks, even if it’s actually providing them a way to bet against the industry.
You see, as the cannabis industry matures, it needs to begin resembling all those industries that came before it. That will not only create an air of legitimacy around the marijuana sector, but also provide investors a roadmap as to where pot stocks are headed in the future.
With the expansion of the ETF options for marijuana investors, we’re going to see more activity stir around pot stocks, which means more money entering the sector and more possible gains.
Not to mention that it will, as mentioned before, continue to legitimize the marijuana industry in the eyes of the public and help spur growth.
Options are a good thing in the world of trading, and these new ETFs are going to provide more of them to investors, increase industry visibility, and ultimately help drive marijuana stocks’ success.
In other marijuana news, today we’ve had a very strong performance by the pot stock market. And much of it is being punctuated by something that I’ve long predicted finally coming to pass: OrganiGram Holdings Inc (NASDAQ:OGI) now has a listing on a major U.S. stock exchange.
No longer sequestered in the over-the-counter (OTC) and Canadian markets, OGI stock is now in the big leagues.
One of my favorite marijuana stocks, OrganiGram stock’s position on the Nasdaq is advantageous for a number of reasons, and I believe that it is destined for big wins in 2019.
OrganiGram’s move to the Nasdaq provides more visibility for one of the more underappreciated pot stocks.
OGI stock has long been considered one of the more undervalued stocks in the marijuana industry, and now it has the chance to reveal just how strong of a stock it is with the added exposure.
With this listing, we’re also seeing the first marijuana penny stock hit the Nasdaq, which is a perfect role for OrganiGram stock to fill.
Compared to the other two pure-play marijuana companies on the exchange, OrganiGram is uniquely suited to appeal to investors who want to get in on the ground floor and watch things grow.
The other two companies on the Nasdaq, by contrast, have already made several major moves that put them further along in their timeline compared to OrganiGram, meaning that OGI stock likely has the highest ceiling of the three.
OrganiGram stock was up two percent in early-morning trading today and it has seen a gain of more than nine percent over the past five days.
The gains are being seen all around among the three marijuana stocks on the Nasdaq. Cronos Group Inc (NASDAQ:CRON), in particular, has had an explosive morning.
Cronos stock leaped by five percent in early-morning trading, while the company finds itself up by more than eight percent over the past five days.
I see this gain likely as a function of OGI stock bringing renewed attention to the Nasdaq marijuana stocks, with CRON stock being the most established of the three.
While I see a higher upside for OrganiGram stock, Cronos stock is still very strong right now and it has seen huge gains in 2019 following its partnership with the tobacco company Altria Group Inc (NYSE:MO).
The move to saddle up with Big Tobacco has paid off handsomely, with CRON stock being one of the top performers in 2019.
While Cronos stock has traditionally been erratic—even compared to the volatile marijuana industry as a whole—I predict that we’re going to see things settle down for Cronos now that it has locked in some serious gains, with sustained growth the likeliest outcome.
Now on to the ugly duckling of the group, Tilray Inc (NASDAQ:TLRY). Tilray stock was up nearly three percent in early-morning trading today, but it has also fallen by three percent over the past five days.
Of the three Nasdaq marijuana stocks, TLRY stock is the least impressive—by a wide margin. This stock has struggled in 2019, especially compared to the strong gains seen industry-wide.
Rather than join in on the success, Tilray stock has been a big disappointment for pot investors, although not an entirely unexpected one. I had long been predicting that the stock would see sustained losses ever since it experienced its huge run after its initial public offering (IPO).
What I got wrong, however, was the timeline. I had imagined that TLRY stock would’ve seen a faster decline. Instead, we have been witnessing a drawn-out fall that has seen its share value chipped away day by day.
While there is still potential in Tilray stock, that potential won’t be accessible until its share price falls sufficiently so the market sees it as appropriately priced, or the company can swing a major deal in order to justify its stock value.
TLRY stock will likely need to fall below $40.00 per share before investors can start being really bullish about it again.
OGI, CRON, and TLRY Stock Performances
The performances of OGI stock (black line), CRON stock (blue line), and TLRY stock (red line) over the past week are seen on the chart below.
Chart courtesy of StockCharts.com
The marijuana stock market has been very strong this week, with big gains tallied by some of my favorite cannabis stocks.
Furthermore, with new marijuana ETFs being introduced and OrganiGram stock finally hitting the Nasdaq, it has been a great few days for pot stocks all around.