Marijuana News Today
In what should come as no surprise, the marijuana news today continues to track the effects of Canadian marijuana legalization, with shortages hitting certain provinces as consumers continue to come in waves for pot.
In Nova Scotia, a smaller province in Canada, we’re seeing marijuana shortages and high sales across the region. (Source: “Customer traffic still heavy at Nova Scotia marijuana outlets,” CBC News, October 18, 2018.)
Both the rush of consumers and the occasional supply shortage were to be expected in the early stages of Canadian marijuana legalization and speak to the future of the industry from here on out.
With all the hype over legalization gone with its arrival, one thing that investors ought to pay attention to is sales numbers.
As the industry continues to mature, an increased emphasis will be placed on hard figures demonstrating a booming marijuana business. These sales numbers featured in quarterly reports are likely to play an even larger role in the future of the marijuana industry than they have before.
This is all part of the progression of the industry and its transition from potential-based stock prices to numbers-based growth.
Having said that, major developments like other countries legalizing marijuana are still going to have a massive effect on marijuana stock prices.
While much of the future of marijuana stocks’ success will be decided based on figures released in quarterly reports, the most massive runs will still likely be generated based on hype surrounding a new market opening via legalization or through massive investments from larger entities like Big Alcohol or Big Tobacco.
But as it stands now, there is no major event on the horizon—a first for the marijuana industry.
No country has claimed that it will push to legalize marijuana federally, and no major company has mentioned a plan to invest in the industry.
Of course, both of those cases could change on a dime.
Outside investment, in particular, is still likely, with many major companies like The Coca-Cola Co (NYSE:KO) expressing interest in the industry, although no concrete deal has landed yet.
So for investors, watching the numbers is a good way to predict future gains, but they should also remain vigilant for those massive market-shaking events like billion-dollar-plus investments and governments moving toward legalization.
Canopy Growth Stock
Over the past few days, the marijuana industry has been rising and falling in unison. The marijuana news today sees small gains across the board, with Canopy Growth Corp (NYSE:CGC) leading the way, gaining two percent in early-morning trading.
Over the past five days, we’ve seen CGC stock spike high and then give those gains back as the company fell back to earth.
These peaks and troughs are likely to characterize the next few weeks as the industry deals with investor interest in the aftermath of Canadian marijuana legalization.
I expect to see many stops and starts in the near future until things begin to balance out come mid-November, becoming more predictable.
Of course, all this is being projected without knowing if a massive investment is on the way.
Should another major company inject capital into the marijuana industry, expect to see marijuana stocks boom similar to what we saw in mid-August when Constellation Brands, Inc. (NYSE:STZ) made its large investment in CGC stock.
Until then, however, expect investors to be capricious in the weeks following legalization.
Aurora Cannabis Stock
Another company following a similar trend line to CGC stock is Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB).
The company also rose about two percent in early-morning trading. While it has seen its gains be entirely wiped out over the past five days, ACBFF stock is still eking out a small gain of two percent over the past five days.
Aurora Cannabis stock is one of the more potential-filled plays, however, as rumors have linked it to Coca-Cola’s exploration of the market. Should an investment be forthcoming, expect to see a massive jump in value for ACBFF stock.
Furthermore, the company is going to list on the New York Stock Exchange (NYSE) on October 23. The move will likely generate investor excitement and push its stock value up.
Of course, this could also open ACBFF stock up to a period of increased volatility as it lands on a major U.S. listing. I expect to see swings of increased intensity once ACBFF stock does end up on the NYSE.
As such, we’re likely going to see a period of increased unpredictability on the horizon for Aurora Cannabis stock.
CGC & ACBFF Stock Performances
The CGC stock (black line) and ACBFF stock (blue line) performances from the past week are seen in the chart below:
Chart courtesy of StockCharts.com
There’s a lot of good in the marijuana news today.
The pot stock market registered mild but positive results in early-morning trading, while the industry appears to be booming in Canada.
Much of the pot stock market’s future is tied to how well the Canadian market performs, especially as those first earnings reports roll out. As such, seeing massive lines and hearing about supply shortages may not be ideal for the consumer, but this is music to the ears of any pot stock investor.