Marijuana News Today: Pot Stock Market Continues Upward Trend
Marijuana News Today
The marijuana news today is very positive as two of our favorite pot stocks continue to rise and the U.S. federal government ordered 3.2 million grams of cannabis to be grown legally for scientific research.
The U.S. Drug Enforcement Administration (DEA) wants that amount of marijuana to be grown in the U.S. in 2020 in order to study the effects of the substance. (Source: “DEA Wants 3.2 Million Grams Of Marijuana Legally Grown In 2020,” Forbes, September 11, 2019.)
This is another demonstration of the rising acceptance for the drug, even among its most ardent opponents. The DEA, after all, has maintained the Schedule I classification for pot for decades now, listing it alongside far more dangerous drugs like heroin and meth.
The 3.2-million-gram order is good for a 30% increase from this year’s quota of less than 2.5 million grams.
This announcement follows the DEA’s announcement in August that it would increase the number of licensed marijuana growers in order to help meet the bigger order.
The fact that federal studies on marijuana are being ramped up further cements that a new marijuana age is coming for the United States.
While this isn’t a major victory for the pot industry, it is a small step forward for marijuana advocates that would love the DEA to undertake as many tests of the drug as possible.
The thinking is that, after years of scientific evidence that marijuana isn’t all that harmful (certainly less harmful than cigarettes and alcohol), even more research will ease the drug’s path towards legalization.
Federal U.S. marijuana legalization remains the next big hurdle for the industry to overcome. Once we see legislation enacted in America that permits pot use, marijuana stocks will likely see rapid growth.
It’s a fairly straightforward equation: the largest market in the world, coupled with one of the fastest-growing industries in the world, will equal mass interest from businesses (and investors) to take advantage of the green rush.
The question, as always, is when that will happen. Right now, weed is enjoying far more political and social support than it ever has before, both globally and in America.
Particularly in the U.S., where the country has typically taken a puritanical view as far as marijuana is concerned, public opinion has dramatically shifted over the past few decades to the point where now a large majority of Americans support marijuana legalization in one form or another.
Politicians too, particularly those in the Democratic Party, are very supportive of marijuana reform. Almost every major candidate to be the party’s presidential nominee support marijuana legalization. While they differ on the details, it is undeniable that the left is behind pot reform.
All this culminates in the biggest swell of support for marijuana legalization we’ve ever seen in the United States. While the legalization process could take as long as 10 years, those looking to see huge profits over that time would do well to keep a close eye on the marijuana stocks that could benefit mightily from any movement on legislative reform.
The marijuana news today also has us seeing strong gains on the pot stock market, with some of our old favorites coming out on top again.
First we’ll start with the stock that has been on fire for the past few weeks: Curaleaf Holdings Inc (OTCMKTS:CURLF, CNSX:CURA). Curaleaf stock jumped three percent in early-morning trading today and four percent over the past five days.
More importantly, CURLF stock is nearing $8.00 in share value. Its all-time high was roughly $11.50 early this year. There’s a good chance that Curaleaf stock could surpass that price in the first half of 2020,.
On top of that, the company has the auspicious title of having created the first marijuana billionaire. Curaleaf chairman Boris Jordan is reportedly worth $1.1 billion, making him the first billionaire to derive said fortune primarily from legal pot. (Source: “Cannabis King: Boris Jordan, Chairman Of Curaleaf, Becomes The Only Pot Billionaire,” Forbes, September 10, 2019.)
This continues a strong run of good fortune for the company.
Earlier in September, Curaleaf launched yet another dispensary in the United States. The Port Charlotte, Florida location is the 49th dispensary that Curaleaf has opened in the U.S., and the 26th that the company has opened in Florida. (Source: “Curaleaf Opens Port Charlotte’s Largest Medical Cannabis Center,” Curaleaf, September 3, 2019.)
That expansion saw CURLF stock grow. But Curaleaf stock has also marked several other victories, including the company’s issued guidance predicting over $1.0 billion in revenue for the next fiscal year. If successful, that would make Curaleaf the first marijuana company to clear that mark. (Source: “Cannabis Canada: Will Curaleaf be the first pot company to report US$1B in sales?” BNN Bloomberg, August 28, 2019.)
All things considered, Curaleaf stock is looking poised to continue its upward trajectory for some time.
Another of our top pot stocks soaring today is OrganiGram Holdings Inc (NASDAQ:OGI). OrganiGram stock gained nearly four percent in early-morning trading. Over the past five days, OGI stock has climbed by more than 12%.
Much like CURLF stock, OGI stock has seen its price rise in recent weeks as the marijuana correction appears to be subsiding. Considering that OrganiGram was considered one of the better-valued stocks in the industry before the downturn, with its new bargain price, OrganiGram stock is looking very enticing.
Everything that made the company great before the downturn is intact (size, fundamentals, management), but now it has the added bonus of a greatly reduced share price.
The company is also set to increase its supply capacity, with an expansion of its Moncton facility. (Source: “Organigram Receives Health Canada Licensing For New Grow Space,” Grizzle, September 9, 2019.)
OrganiGram received Health Canada approval for 17 additional grow rooms at the facility, which would increase the estimated production capacity to nearly 168,000 pounds of dried cannabis per year. The first harvest from the expansion is expected to take place in late November.
OGI stock, meanwhile, should continue to see growth.
CURLF and OGI Stock Performances
The performances of CURLF stock (black line) and OGI stock (blue line) over the past week are seen in the chart below:
Chart courtesy of StockCharts.com
The marijuana news today is packed with good tidings.
At the federal level in the U.S., we’re seeing an increased demand for marijuana for research—a good sign of changing attitudes in the upper echelons of U.S. government and drug enforcement.
On the weed stock market, two of our top pot stocks continue to impress, with strong gains following the marijuana stock market correction.