Marijuana News Today: Pot Stocks Continue to Surge

Marijuana News TodayMarijuana News Today

The marijuana news today sees the recent bullish trend for select pot stocks continue while the issue of federal U.S. marijuana legalization continues to gain steam.

Starting with the political news, in the U.S., marijuana legalization has hit a new milestone. Just recently, the House Judiciary Committee passed the Marijuana Opportunity Reinvestment and Expungement Act of 2019 by a vote of 24 to 10. (Source: “Matt Gaetz to Kellyanne Conway over marijuana legalization: ‘OK, boomer’,” The Hill, November 23, 2019.)

The bill would remove marijuana from the Controlled Substances Act, effectively legalizing the drug at the federal level. It would also expunge federal cannabis convictions.

This is the first time in the U.S that marijuana legislation has been passed by a congressional committee.

It’s worth noting the strong bipartisan support in the committee for marijuana reform. That has led to conflict within the Republican Party, exemplified the differing positions of Rep. Matt Gaetz and White House counselor Kellyanne Conway.

“For all the folks that talk about the benefits and legalities of marijuana, there are many health professionals and employers increasingly concerned that this is not your grandfather’s or your father’s marijuana,” said Conway in April.

“The TCH (sic) components are much stronger.”

More recently, when Gaetz was asked to respond to Conway’s criticism of marijuana, he offered a substantial rebuke.

“That’s a very boomer approach to marijuana, for no other reason than it’s THC, not TCH, and I think her reflection shows a real ignorance to the science,” said Gaetz. (Source: Ibid.)

On a macro scale, what this conflict really represents is the shifting perspective of the newer generation when it comes to pot.

While, in the past, marijuana was believed by many to be a gateway drug—and currently, it is considered just as harmful as heroin according to the U.S. Drug Enforcement Administration’s classifications—the attitude surrounding pot has largely changed over the last few years.

While older generations may still hold on to misconceptions when it comes to weed, as time goes on and younger politicians enter the House and Senate, we can expect a massive shift in values.

With that shift, we could see marijuana legalization in the U.S. expedited. And when federal U.S. marijuana legalization does come, pot stocks will likely skyrocket.

This makes pot socks some of the more high-potential investments around.

CGC Stock

As positive as the political marijuana news today is, it’s outdone by the continuing resurgence of the marijuana stock market.

Massive gains have been tallied by several pot stocks (including many of the stocks I’ve supported for years).

This shows that life remains in the marijuana stock market in the short term while, long-term, these stocks are set to see significant gains as global expansion of the industry continues.

Canopy Growth Corp (NYSE:CGC) continues to impress, gaining nearly three percent in early-morning trading today. CGC stock also surged 33% over the past five days, representing a massive recovery for this pot stock.

Canopy Growth stock is typically a good indicator of the industry as a whole, due to its size and prominence in the market. As such, when things are going well for CGC stock, expect other marijuana stocks to follow.

I anticipate that Canopy Growth stock will be able to gain about 50% in the coming recovery, whether that’s in early or late 2020.

Another boon for CGC stock is the company’s newly acquired license from Health Canada that will allow it to operate a 150,000-square-foot cannabis-infused beverage facility. (Source: “Canopy Growth Receives Health Canada Licence for State-Of-The-Art Beverage Facility,” Cision, November 25, 2019.)

That will permit Canopy Growth to participate in an extremely exciting new sub-sector of the market. 

Coupled with its alcohol industry connections via Constellation Brands, Inc. (NYSE:STZ), this could be the start of a massive recovery by Canopy Growth stock.

OGI Stock

Another pot stock that has shown immense progress over the past week is OrganiGram Holdings Inc (NASDAQ:OGI).

OrganiGram stock jumped by over three percent in early-morning trading today. It also had a strong showing over the past five days, seeing 32% in gains.

The company just released its fourth-quarter and fiscal-year report, helping boost OGI stock further.

OrganiGram’s 2019 net revenue increased 547% year-over-year from $12.4 million to $80.4 million, representing the first full year of Canadian marijuana legalization. (Source: “Organigram Reports Fourth Quarter and 2019 Fiscal Year Results,” Business Wire, November 25, 2019.)

The company did, however, incur a net loss on the year compared to net income in 2018, which it attributed to non-cash fair value changes to biological assets and inventories.

OrganiGram’s fiscal 2019 adjusted earnings before interest, tax, depreciation, and amortization (EBITDA)  hit $19.9 million, or 25% of net revenue. That’s up from negative $1.0 million in fiscal 2018.

OrganiGram stock was further helped by registering an estimated 10% market share nationally in the Canadian recreational weed market. The company also saw sales in all 10 provinces, speaking to the strong long-term outlook that OGI stock currently has.

The company is also projecting that the next quarter will see improvement compared to Q4, a good sign of sustained growth for OrganiGram stock.

Overall, things are very bright right now for OGI stock as it fights back against the marijuana correction.

OrganiGram remains one of our top pot stocks and it’s currently extremely well priced. I believe that, in the coming marijuana stock market recovery, we could see OrganiGram stock climb by as much as 100% in the next year or so.

CGC & OGI Stock Performances

The performances of CGC stock (black line) and OGI stock (blue line) over the past week are seen in the chart below:

Chart courtesy of

Analyst Take

The marijuana news today shows a resurgent pot stock market, with our top pot stocks seeing massive gains in recent days. Meanwhile, on the political front, U.S. marijuana legalization continues to pick up steam and is looking more and more likely by the day.

All in all, this is a fantastic time for marijuana stocks as they are priced extremely low and have extremely high upsides.