Marijuana News Today
The marijuana news today is a welcome respite from yesterday’s dismal performance, with pot stocks largely climbing in early-morning trading.
I’d still argue that we’re in a form of correction, since April and May have been the worst months for marijuana stocks so far in 2019. I’d also ague that the back-and-forth nature of marijuana stocks is a good thing; previous corrections were generally angled straight down for prolonged periods.
And the future, as ever, is very exciting for marijuana investors. The marijuana news today has us looking at several big-league U.S. retailers looking to add cannabidiol (CBD) products to their stores. (Source: “Cannabis Canada Daily: Major U.S. retailers meeting with pot firms for CBD product lines,” BNN Bloomberg, May 13, 2019.)
With the CBD market growing in popularity, it makes sense that companies would seek out ways to take advantage of this sector. Products like gummies, creams, and cannabis-infused drinks have all been shown to be in high demand among consumers.
Companies like Walmart Inc (NYSE:WMT) and Target Corporation (NYSE:TGT) have both reportedly been meeting with cannabis producers in order to roll out these products on store shelves. Large national grocery chains have also been linked to the cannabis industry. This is in keeping with the general push toward a more open U.S. CBD market.
Across the country, CBD products are becoming more commonplace and consumers are growing more comfortable with the cannabis extract. The fact that it a) doesn’t have to be smoked and b) doesn’t get people high makes it very appealing to first-time triers and members of older demographics.
The multi-billion-dollar CBD market, is far likelier to see global acceptance before the recreational marijuana market does because it is less stigmatized. CBD is often marketed as a health supplement or a naturopathic remedy.
CBD could become the vanguard that pushes through legalization for all cannabis products, similar to what medical marijuana has been able to do in recent years
In any case, more and more massive multinational companies are looking to put CBD in the hands of their customers, which will benefit the cannabis companies that will be supplying this green rush.
As mentioned earlier, the marijuana news today has us singing an entirely different tune than yesterday when it comes to the pot stock market. Whereas everything was in the red to start the week, today we’re seeing green everywhere as marijuana stocks bounce back from their poor showing yesterday.
Many pot stocks were up three to five percent in early-morning trading today, but several are standing out from the pack.
Aurora Cannabis Inc (NYSE:ACB) is not one of them—it’s only up about two percent—but the company did make gains in other ways.
With edible legalization forthcoming in Canada, many marijuana producers are stockpiling cannabis in order to be ready for another rush of excitement from consumers. This has led to Aurora working with Radient Technologies Inc. (OTCMKTS:RDDTF, CVE:RTI).
Aurora received its first batch of cannabis extracts from Radient and is looking to translate that stockpile into future success. (Source: “Aurora Cannabis and Radient Technologies Announce First Commercial Delivery of Cannabis Derivatives,” Cision, May 13, 2019.)
“Our investment will begin to pay dividends with Radient achieving fully licensed, commercial status,” said Terry Booth, CEO of Aurora Cannabis Inc.
“Once scaled up, the addition of Radient’s technology will significantly increase our ability to deliver high-value cannabis products at scale, complementing our existing internal extraction capabilities, which will support a full suite of derivative products.” (Source: Ibid.)
This move will help ACB stock in the long run. Being able to produce high volumes of cannabis is going to be key if Canada wants to avoid shortages in the future. Part of this is dependent on production and part of it is on regulation, but if Aurora can navigate both of those obstacles, then this deal could pay off handsomely.
Whereas yesterday Cronos Group Inc (NASDAQ:CRON) was plumbing the depths, the stock turned things around in early-morning trading today.
Over the past five days, CRON stock has lost about a point, but the stock’s strong turnaround today is good news. Cronos stock has been in a rough patch in recent weeks, and today’s recovery bodes well for it.
Having started the year on fire, CRON stock has since been flagging in recent weeks. While it’s still up big on the year, those gains are getting weaker. This is partly due to the hangover following the company’s billion-dollar partnership with the the cigarette maker Altria Group Inc (NYSE:MO).
Since the time of that deal, Cronos stock hasn’t had a whole lot motivating further gains, and was instead rising on the goodwill post-agreement.
Cronos will need to find another way to drum up support from investors if it wants to get back to its big stock gains.
Perhaps the biggest winner today, however, was CannTrust Holdings Inc (NYSE:CTST). CannTrust stock soared by over eight percent this morning and the stock finds itself up about eight percent over the past five days.
The big push behind CTST stock is the company’s latest quarterly report. Whereas the last one wasn’t great for the company, its current financial report was very positive in the eyes of investors, leading to a big gain that was supported by the overall market rally.
For now it appears that CannTrust Holdings Inc has the potential to keep its stock gains going strong, considering how impressive the company’s financial numbers are.
ACB, CRON, and CTST Stock Performances
The performances of ACB stock (black line), CRON stock (blue line), and CTST stock (red line) over the past week are seen on the chart below.
Chart courtesy of StockCharts.com
The marijuana news today pulled an about-face on the pot stock market, with almost every major pot stock recovering following the losses they experienced at the beginning of the week.
Furthermore, deals are being made in the CBD market and the edibles market that should have investors excited about expansions coming to the cannabis industry.
Overall, this was a very positive day for marijuana bulls.