Marijuana News Today
Once again, the marijuana news today is practically beating us over the head with how exciting the legal pot market is going to be once it opens up on a federal basis in the United States.
The numbers have come in from Massachusetts’s first day of legal recreational marijuana sales, and they are strong.
Marijuana buyers in Massachusetts spent $440,011 at two stores in one day, according to the state’s Cannabis Control Commission. This is the sales tally from the first two legal weed stores to open in the state. The products sold include pre-rolled joints, edibles, flower, and concentrates. (Source: “Consumers spent $440,000 on marijuana products Tuesday in Massachusetts,” The Boston Globe, November 21, 2018.)
The state government will take a 17% cut, through a combination of the 6.25% state sales tax and a 10.75% marijuana excise tax. For the first day of legal cannabis sales, that added up to about $74,800 in tax. Not a bad haul for the government, and not a bad deal for marijuana producers.
But this is even better news for the marijuana industry as a whole.
While hype certainly drove sales in Massachusetts on Tuesday, it could be argued that there was a lack of availability across the state, and that the full range of products wasn’t on offer. That means sales could continue to grow much higher in the state.
Considering that Massachusetts has a bit over 1/50th of the U.S. population, with almost seven million people, if we were to extrapolate these sales numbers across the country, we’re potentially looking at a $90.0-billion industry.
By no means a scientific calculation, this gives us a decent picture of what the future holds—or at least what the future potential is of legal marijuana in the U.S.
A variety of factors could push the number higher or lower, but ultimately, we’re looking at an industry that will be worth well north of $50.0 billion in the U.S.
Considering that this well is still largely untapped, there are literally billions of reasons to be excited about the future of legal marijuana.
The marijuana industry will see a breakout like never before, the second that U.S. federal marijuana legalization is announced. It’s just a question of when. Be ready for it, dear readers, and you could see huge profits from your long-term investments.
Another day, another impressive run by Tilray Inc (NASDAQ:TLRY).
I make no attempt to hide that I was once very skeptical of Tilray stock. Heck, I’m still skeptical of its ability to see big long-term gains. But I’m beginning to reconsider that projection as we continue to see very strong performances from Tilray stock, despite the industry-wide downturn.
TLRY stock soared high in early-morning trading today, up about seven percent.
The company continues to boast large stock gains while many other marijuana stocks are simply struggling to avoid heavy losses. If this bullish run proves sustainable, I may have to rethink my projections for this company.
You see, my skepticism regarding Tilray stock stems from its massive growth in the early stages of its development following its initial public offering (IPO) on the Nasdaq.
I’ve written at length about how the gains were too fast, too soon—and left it with little room to grow in the long term.
While I’m still holding on to that belief, TLRY stock’s performance during the recent market correction proves that there is more to this stock than just hype.
The company posted impressive numbers via its last quarterly report, and is proving day after day that investor confidence is with it.
While I’m still unsure about the company’s long-term projections, if you’re looking for gains during this correction—with the possibility of future growth— Tilray is becoming a more appealing pick every day.
Another impressive marijuana stock is Cronos Group Inc (NASDAQ:CRON). CRON stock climbed about two percent in early-morning trading today and is up about the same percentage over the past five days.
Much like Tilray, while many other marijuana stocks are struggling in the current market, Cronos stock continues to post gains.
While it appears to be the lesser gain-oriented stock compared to Tilray, Cronos Group’s presence on the Nasdaq has benefited it. Tilray and Cronos are the only marijuana stocks on the Nasdaq, and both have fared well during the current stock market correction.
While TLRY has more short-term potential, CRON stock is the safer long-term pick.
One company that we can safely bypass—at least for the moment—is Aphria Inc (NYSE:APHA). Once a favorite of mine, APHA stock has been stuck in the dumps for the better part of 2018.
When other stocks saw huge gains, Aphria stock’s numbers were muted. When other stocks saw losses, Aphria’s falls were harder than most.
The company has been unable to make a case for itself in 2018, and that continues during this most recent marijuana stock market correction.
APHA stock remained even on the day this morning, but dropped by 13.5% over the past five days.
I’ve run out of patience for Aphria stock, and would advise marijuana investors to hold off, considering it has been a long time since the stock has impressed.
This doesn’t mean that APHA stock is doomed forever, but it does mean that there are far better options in the market right now.
TLRY, CRON, and APHA Stock Performances
The TLRY stock (black line), APHA stock (blue line), and CRON stock (red line) performances from the past week are seen on the chart below:
Chart courtesy of StockCharts.com
The legal marijuana industry, for all its ups and downs in the near term, still maintains a stellar long-term projection, as the marijuana news today shows.
There’s so much room for growth in the industry that investors need to be forward-thinking if they want to see the biggest bang for their buck.
The future of the marijuana industry will still see 100%, 200%, and 300% growth as, one by one, more countries legalize marijuana. While this is still a few years away, the projected gains could make the investment more than worth the wait.