Marijuana News Today: U.S. Sees Push for Legalization Grow Among States
Marijuana News Today
Several U.S. states are closer to marijuana legalization than ever, reflecting a growing acceptance for pot among voters, the marijuana news today shows us.
Texas is on track to become the 25th state to decriminalize marijuana, removing the threat of jail time for possession. The state’s House of Representatives passed a bill yesterday to that effect. (Source: “Texas Lawmakers Approve Marijuana Decriminalization Bill,” Forbes, April 29, 2019.)
While not yet law, this is another sign of the turning of the tide in the U.S.
Texas is a Republican-controlled state that’s traditionally among the most conservative states in the Union. The bill being passed demonstrates that marijuana reform is not a partisan issue—or at least, not as much as it once was.
The Democratic Party is still very much (on the whole) more supportive of marijuana reform compared to the Republican Party, but the issue has seen huge shifts over the years, no longer being a political third rail for politicians.
We’re also seeing this phenomenon play out in New Jersey, where Governor Phil Murphy is dead set on passing some form of marijuana reform, whether his legislature supports him or not.
Murphy is planning to push through an executive order to legalize medical marijuana if the bill that would see all forms of pot legalized dies or is delayed in the legislature. (Source: “NJ marijuana legalization: Medical marijuana could move on without recreational legal weed, expungement plan,” Ashbury Park Press, April 30, 2019.)
If Murphy isn’t able to win the necessary votes in a “purple state” like New Jersey, that would clearly speak to political division still holding sway over the issue of marijuana legalization.
At the same time, the fact that the governor is willing to go out on a limb and all but guarantee some manner of marijuana reform shows that he thinks it’s more politically viable to support marijuana legalization.
The overall takeaway, then, is that marijuana is becoming more and more accepted in the U.S., seemingly by the day. More politicians have been voicing their support for marijuana reform, even for legalization at the national level. A perfect example of this changing attitude is the current Democratic Party presidential candidate cohort; almost all of them are in some way or another supportive of marijuana reform.
Has U.S. marijuana legalization long ago stopped being a question of “if” and more a question of “when?” With each legislative victory at the state level, we edge closer to the goal line that would see federal legalization in the U.S. (and marijuana stocks soaring).
As such, marijuana bulls ought to be very excited about the future prospects of an open U.S. market.
OGRMF Stock
The marijuana news today is good on the news front, but it is great in terms of pot stock growth. In particular, OrganiGram Holdings Inc (OTCMKTS:OGRMF, CVE:OGI) stock continues to gain, following the company’s announcement that it would be applying for a Nasdaq listing.
OGRMF stock jumped five percent in early-morning trading today and finds itself up by 13% over the past five days.
“As a management team we are seeing increased interest from investors in the U.S. and internationally and believe that having a listing on the NASDAQ will facilitate trading,” said OrganiGram CFO Paolo De Luca. (Source: “Organigram Announces Application to List on NASDAQ,” Cision, April 26, 2019.)
“In addition, based on precedents in the cannabis space, we expect trading volumes to increase which should result in increased liquidity for all investors.”
This is one of the stronger plays that the company could have made, and it is paying off.
I’ve written at length about all the positive features of OrganiGram and how the company is packed full of potential. From being a good size for an acquisition to being a target for partnerships, there’s still a lot of room left for this marijuana penny stock to grow.
Not to mention that, when the company completes its registration with the Nasdaq, expect investors to flock to OrganiGram stock. It will become the cheapest and smallest pure-play marijuana stock on the exchange, making it an ideal target for investors looking to get in on the ground floor of a growth stock.
As such, I’m very bullish on OGRMF stock.
CRON Stock
Another top performer today is Cronos Group Inc (NASDAQ:CRON). CRON stock jumped nearly three percent in early-morning trading and is up about seven percent over the past five days.
While Cronos stock hasn’t scored any major victories quite like OrganiGram, the company is still putting on a strong showing in 2019. In fact, OrganiGram stock’s entry onto the Nasdaq will likely help spur growth among Cronos stock as well, considering it is one of the two pure-play marijuana stocks on that exchange (the other being Tilray Inc (NASDAQ:TLRY)).
There will likely be renewed interest in the pot industry among Nasdaq investors when OGRMF stock lands on that exchange, also increasing the possibility of further gains for CRON stock.
While I like Cronos stock, I also believe that OrganiGram stock is the better of the two at this moment. There’s simply far more potential locked within that marijuana penny stock than there is in Cronos, at least in the near term. Long-term, Cronos could make any number of moves that would help push it ahead of OrganiGram. But as it stands, between the two stocks, OrganiGram seems to be the better play at the moment.
The next thing to watch for with these two companies, barring any major developments, is their financial reports. They are still among the strongest determinants for pot stock growth.
OGRMF and CRON Stock Performances
The performances of OGRMF stock (black line) and CRON stock (blue line) over the past week are seen on the chart below:
Chart courtesy of StockCharts.com
Analyst Take
The marijuana news today has me giddy.
On the political news front, we have several U.S. states inching toward legalization, with Texas and New Jersey making strides to that effect this week.
While Texas is still a long ways off from legal weed, the fact that it was able to pass some manner of pot reform in its legislature is an achievement.
New Jersey, meanwhile, has one of the most pot-positive governors around and I believe that we’ll see major pot reform in the Garden State at some point in 2019.
On the pot stock market, meanwhile, we have seen big gains for both OGRMF stock and CRON stock, with both benefiting from OrganiGram’s announcement that it is seeking a listing on the Nasdaq. Expect more growth to follow as OrganiGram goes public on that massive stock exchange.
