Marijuana News Today
We have a lot to cover in the marijuana news today. Between major developments in the pot stock market and the arrival of cannabis as an industry worthy of notice by the elites, it has been a busy day.
Let’s start with the softer news.
The World Economic Forum’s annual Davos gathering is often considered the face of elitism in the modern era. Top politicians, prominent industry heads, and a bevy of other notable characters often make the trek to the mountain resort.
What makes this year particularly of interest to marijuana bulls, however, is that legal cannabis has finally entered the scene. (Source: “Global elite set to meet cannabis elite as marijuana industry descends on Davos for first time,” Financial Post, January 22, 2019.)
This year will mark the first time that the cannabis industry will be represented at the forum. A three-hour lunch called a “Cannabis Conclave” is scheduled.
Attendees include prominent politicians and businesspeople, alongside notable industry stars like Bruce Linton, CEO of Canopy Growth Corp (NYSE:CGC).
While the impact of cannabis’s presence at Davos may not be immediately felt on the stock market, it does signal growing acceptance across the world for the industry.
After all, if the elites are taking notice, that means there’s a lot of money to be made from marijuana.
And this correlates with what is likely to be another strong year for marijuana legalization across the world.
Already in the U.S., you have at least two states—New York and Illinois—with plans to legalize recreational pot, while the legalization of hemp cultivation has also provided a shot in the arm to the growing cannabidiol market.
Elsewhere, you have countries across the world relaxing their laws on marijuana and turning the product into a truly global industry—one that has the potential to be worth billions within the next few years.
As such, it makes sense that the Davos folk would take notice.
For our purposes, the cannabis presence at Davos only further solidifies what we’ve long known: the future of the marijuana industry is global, and it is profitable.
In other marijuana news today, we have HEXO Corp (NYSE:HEXO) officially listing on the New York Stock Exchange (NYSE).
This is a huge step for the company as it is now no longer confined to an over-the-counter markets (OTCMKTS) or Canadian ticker, but is now available on a truly international exchange.
This means that HEXO stock will have access to higher amounts of capital by virtue of how much more money is at play on the NYSE.
Furthermore, as is always the case when these marijuana stocks jump ship to a major listing, this lends the company an air of legitimacy and ensures investors that it’s not some fly-by-night operation.
While the number of marijuana scams are few and far between (and HEXO certainly was never charged with being one), many still see the trade as a touch illicit (especially considering U.S. federal law prohibiting marijuana).
Being on the NYSE can help alleviate that fear. The result is that more investors will be freed up to invest in what I consider to be one of the best opportunities in pot.
With Canopy being the one possible exception, there’s no other marijuana company with better fundamentals, in my mind.
A Big Alcohol partnership, lucrative supply contracts, strong production capacity etc., HEXO stock has it all—and is exceedingly cheap.
HEXO stock is still very much a marijuana penny stock, trading at around $5.50 at the time of writing.
The company has so much room left to grow and is one of the few truly undervalued plays in the market…so it’s easy to see why I’m so excited for the future of HEXO.
HEXO stock jumped one percent to start the day in early-morning trading, but finds itself up 16% over the past five days.
Canopy Growth stock is always making waves in the marijuana news.
The CIBC World Markets report came out with a lofty endorsement of Canopy Growth, saying that it has the “industry’s best chance at a global titan.” (Source: “Canopy Growth set to become the ‘global titan’ of cannabis: CIBC report,” The Ottawa Citizen, January 21, 2019.)
The report cited Canopy Growth’s cash on hand, management, global ambitions, and prominent research and development as reasons why the company is most likely to dominate the global pot market.
The report also wrote that Cronos Group Inc (NASDAQ:CRON) had a good chance to be among the top marijuana companies in the world.
It went on further to celebrate Canopy Growth CEO Linton, due to his familiarity with regulators and executives, which provides the company with an edge.
While none of this is news to those who have been following Profit Confidential, it’s still heartening to hear that the world is catching up with what we have long known: CGC stock is a winner.
Canopy Growth stock remained flat to start the day but is up about four percent over the past five days.
A final headline was snagged in the marijuana news today by Tilray Inc (NASDAQ:TLRY).
Tilray purchased Natura Naturals Holdings Inc. for up to $70.0 million, almost doubling its domestic cultivation capacity.
Tilray is set to acquire Natura’s 61,500-square-meter greenhouse cultivation facility, of which 14,400 square meters is licensed. (Source: “Tilray to buy Natura for up to $70M, doubling Canadian cultivation capacity,” The Chronicle Herald, January 22, 2019.)
This is a big move for Tilray and speaks to the company’s ambitions toward expansion.
Tilray stock, however, only climbed about a percent in early-morning trading. TLRY stock over the past five days, meanwhile, is still floundering after last week’s poor performance: Tilray stock is down about 14% over the past five days.
Still, the addition of all that production capacity is a step in the right direction.
While it will likely not pay off with any sort of immediate stock surge, production capacity is one of the key factors we use to judge a marijuana stock’s value, and Tilray has done an effective job at dramatically increasing its size in a single day. Expect that to pay off with future gains.
HEXO, CGC, and TLRY Stock Performances
The performances of HEXO stock (black line), CGC stock (blue line), and TLRY stock (red line) over the past week are seen on the chart below.
Chart courtesy of StockCharts.com
It has been a busy day in the marijuana news today. Headlines abound as both the pot stock market and the political aspect of cannabis were featured.
In both cases, it was nothing but good news for the marijuana industry, continuing what has already been a very strong start to 2019.