Marijuana News Today
We head east for our marijuana news today, looking at recreational marijuana legalization in Europe. More specifically, Switzerland, which has just green-lit a number of studies to determine whether the country should relax its currently strict laws against marijuana.
The government of Switzerland is also looking into making it easier to access medical marijuana (which has been legal in the country since 2011) for cancer and multiple sclerosis treatments. (Source: “Switzerland weighs relaxing marijuana ban,” Reuters, July 4, 2018.)
About 200,000 people in the small European country currently turn to medical marijuana for relief, according to the Swiss government.
“Although current laws forbid [marijuana’s] consumption and seek to punish it, this number is not declining,” said the Swiss government. “At the same time, the black market is flourishing, and the safety of consumers cannot be guaranteed due to a lack of quality control.” (Source: Ibid.)
While the study is a preliminary first step toward marijuana legalization in Europe, this process is similar to what the United States is currently undergoing.
Although Switzerland is not part of the European Union (EU), it has a number of special relationships with the organization, and the country could very well influence the future of marijuana policy in the EU.
Much like the U.S. has multiple states inching toward recreational marijuana legalization, we’re seeing a number of countries in Europe test the waters.
While Switzerland is perhaps the first to begin so in earnest (or at least something resembling earnest), other countries, like the U.K. and Germany, are exploring different ways to expand marijuana usage, primarily medical.
But, as we know, recreational marijuana legalization is a common next step following medical marijuana legalization.
It’s also worth noting that Switzerland’s drug laws are particularly harsh, allowing only low-potency cannabis to be used for medical purposes. The criticism from users is that the low potency is simply not doing the trick.
Those seeking medical marijuana relief in Switzerland must obtain an exemption from the federal health ministry, adding another barrier to marijuana usage. About 3,000 patients are hindered by this process, according to the Swiss government.
The newly announced studies, however, could be a crucial first step for Europe to begin normalizing marijuana usage.
Marijuana companies are licking their lips at the prospect of an EU that allows recreational marijuana, or even just easily accessible medical marijuana.
While legalization in Europe is certainly years off, the marijuana news today from Switzerland speaks to the potential of the industry and the strength of pot stocks as long-term investments.
CGC Stock News
With the Fourth of July holiday putting a stop to stock trading in the middle of this week, the marijuana news today is fairly positive for the pot stock market as trading resumes.
Canopy Growth Corp (NYSE:CGC) was up one percent in early-morning trading today as it looks to recover after a slow start this week.
CGC stock is down about two percent since Monday, but that is right where I expected it to be, especially with the uptick we’re seeing today.
Chart courtesy of StockCharts.com
I predicted that this week would be a slower one for marijuana stocks, and it’s appearing that this is indeed the case.
CGC stock had one of the rougher and more volatile rides in recent days. The massive rush of gains followed by a significant pullback—essentially wiping out that value push—was enough to make a lot of CGC stockholders pine for stabler times.
This week could provide that, I believe. We’ll maybe see a percent or two of gains or losses, but, all in all, this will likely be a muted week for CGC stock.
CRON Stock News
After Cronos Group Inc (NASDAQ:CRON) emerged as one of the stronger performers last week, the company has fallen back into line, with the remainder of the legal marijuana industry losing about one percent on the week and showing a small gain to start the day.
CRON stock is, as I’ve mentioned previously, one of the more unwieldy stocks in the cannabis market, often going in its own direction, regardless of market trends.
As it stands, CRON stock is looking like it will have a similar week to CGC stock and other marijuana companies. Which is to say, not much movement beyond a few percentage points.
ACBFF Stock News
One of the weaker performers on the week, Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) is still largely following the market trend.
The company is down two percent on the week and only up a fraction of a point today in early-morning trading.
Still, those numbers are hardly dismal.
And much like Cronos stock and Canopy Growth stock, Aurora Cannabis stock is going to have a muted end of the week, I believe, as investors look for a little stability in the market following the volatility of late June.
The marijuana news today shows promise for the future and calm waters in the present.
EU marijuana legalization is a prospect to make any marijuana bull salivate, even if that future is many years away.
On the flip side, the marijuana stock market is settling down for the very near term, which allows investors to enjoy their holiday week with a measure of peace.