Marijuana News Today
When it comes to the cannabis stock market, it looks like January will close on an unpredictable note. The marijuana news today has pot stocks flying off in all directions, while Illinois looks to become yet another U.S. state to legalize marijuana for recreational use.
Before we get into today’s pot stock market performance, let’s take a quick look at the developments in Illinois.
Recently elected Governor J. B. Pritzker has brought with him a pro-marijuana agenda that could see Illinois become the 11th U.S. state to legalize recreational pot (if New York doesn’t beat them to it). (Source: “Illinois’ new governor touts legal marijuana, but will he remove roadblocks to expand medical pot?” Chicago Tribune, January 21, 2019.)
Each state that modernizes its drug policy to reflect the will of its majority (by legalizing marijuana) helps build political momentum to an undeniable cascade that would force lawmakers on the national stage to also take up the issue.
The likely outcome of a federal legislative vote on cannabis would be some relaxation of marijuana persecution, and therefore, a huge boost to marijuana stocks.
While that scenario is months—maybe even years—away, each state that pushes forward with legalization brings us one step closer.
Furthermore, a heartening thing we’re seeing in 2019 is that more and more states are taking up the legalization cause within their state houses, rather than deferring the issue to a public referendum.
This has been a monumental shift in the process of marijuana legalization. It’s now becoming politically viable—and in some cases, politically necessary—for American politicians to support marijuana reform.
If Illinois and New York become the 11th and 12th states to legalize recreational marijuana in the U.S., then expect to see the fight for federal marijuana legalization to kick into high gear.
Moving away from the future to focus on the present, the marijuana news today has happenings both positive and negative in the pot stock market.
First, Canopy Growth Corp (NYSE:CGC) stock was up nearly two percent in early-morning trading today, continuing a strong trend that has seen the stock gain almost 14% in the past five days.
While much of these gains are the result of a strong start to 2019 in general (and several developments pertaining to CGC stock specifically, like gaining access to bank capital), today features another breakthrough for Canopy Growth stock: the company’s further expansion into the European market. (Source: “European Update: Spectrum Cannabis enters UK & Poland,” Cision, January 21, 2019.)
Canopy Growth has long been interested in spreading its seed (so to speak) to markets far and wide, and a press release today has the company touting its success in the U.K. and Polish markets.
The company has formed Spectrum Biomedical UK, which is looking to take advantage of the British government’s new classification of marijuana (which took effect in November 2018). The new classification permits specialist doctors to prescribe cannabis-based medicines for a variety of ailments.
Canopy Growth is using Spectrum to help spread the word of its marijuana products and put its medicines in the hands of doctors and patients. The company’s goal, of course, is to increase its overall share of the U.K. cannabis market.
“Spectrum UK has the expertise and ambition to simplify the UK medicinal cannabis landscape and ensure access to cannabis-based medicinal products for patients with great clinical unmet need,” said Dr. Mark Ware, chief medical officer at Canopy Growth.
The company also saw its operations in Poland, Spectrum Cannabis Polska, complete its first import of medical marijuana.
This international expansion is a great step toward future success for Canopy Growth, and once again solidifies why I like CGC stock.
HYYDF Stock/HEXO Stock
Another big story in the marijuana news today has to do with Hexo Corp (OTCMKTS:HYYDF, TSE:HEXO).
My favorite marijuana penny stock may not be a penny stock much longer, since its share price has seen huge growth over the past several weeks.
HYYDF stock is now up over $7.00 a share, climbing five percent in early-morning trading today. Over the past five days, Hexo stock has gained more than eight percent.
Just a few weeks ago, the stock was trading around $4.00, and my faithful readers (including those who subscribe to the Marijuana Millionaire newsletter) would know that I’ve been bullish on Hexo stock for months.
This stock has not disappointed, with strong gains that are likely to continue growing as the company registers on the New York Stock Exchange (NYSE). (Source: “HEXO to begin trading on the NYSE American,” GlobeNewswire, January 17, 2019.)
It has been no secret that Hexo was looking to jump to the NYSE, but now we have a firm date: this Wednesday.
On January 23, the HYYDF stock ticker will be supplanted by the HEXO stock ticker, and we’ll see this gem of a marijuana company gain access to capital it had previously been unable to tap into—likely sending share prices soaring.
For all the good news surrounding HEXO stock and CGC stock, one marijuana stock has taken a steep dive to start the week: Tilray Inc (NASDAQ:TLRY).
Tilray stock had enjoyed a rather strong run in December and early January. Over the past week, however, the stock has reverted to its extremely volatile ways of old.
TLRY stock fell by over seven percent in early-morning trading today, while the stock is down 20% over the past five days.
As is usually the case with Tilray stock, much of this loss is more due to investor sentiment rather than any concrete news or developments. Which is to say, the wild up-and-down swings that we saw in TLRY stock last year (which I believed to be a thing of the past) have not quite been purged.
As such, Tilray stock will likely continue to be an unpredictable—but still highly profitable—investment opportunity in 2019.
CGC, HYYDF, and TLRY Stock Performances
The performances of CGC stock (black line), HYYDF 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 news today has me a little bewildered with all the developments, but by and large, it was a good way to start the week.
Illinois is looking to become yet another pro-pot state, hastening the path toward full legalization in the United States.
Meanwhile, marijuana stocks largely saw gains in the market today, even if some outliers dampened the celebratory mood.