Marijuana News Today
The marijuana news today sees another U.S. lawmaker call for the legalization of marijuana, or at the very least, its removal from the Schedule 1 designation, which sees the drug being classified among the most dangerous substances in America alongside heroin and other more potent narcotics.
U.S. Senator Kamala Harris (D-Calif.) came out in support of the bill yesterday, co-sponsoring the Marijuana Justice Act, first introduced by Senator Cory Booker (D-N.J.) last year. (Source: “Kamala Harris backs Booker bill to legalize marijuana,” The Hill, May 10, 2018.)
The act seeks to remove marijuana from the Schedule 1 designation and force federal courts to expunge the records of Americans who have marijuana convictions related to use or possession on their records.
“It’s the right thing to do. And I know this as a former prosecutor. I know it as a senator,” Harris said in a video announcing her decision with NowThis. “I just look at what we want as a country and where we need to be instead of where we’ve been.”
“African-Americans use marijuana at roughly the same rate as whites but are approximately four times more likely to be arrested for possession,” Harris said. “The fact is marijuana laws are not applied and enforced the same way for all people.”
What makes this backing particularly powerful is that Harris is considered among the top front-runners for the Democratic presidential nomination for 2020.
In fact, many of the top Democrats expected to run have put their weight behind this marijuana bill, including Senator Kirsten Gillibrand (D-N.Y.) and Senator Bernie Sanders (I-Vt.).
Even Senator Chuck Schumer (D-N.Y.), the Senate minority leader, has come out in support of U.S. marijuana legalization, or at least, decriminalization.
That effectively positions the Democratic party as the party of marijuana legalization. The marijuana news today only further solidifies the party’s support of the drug.
This could very well be a winning strategy for Democrats.
In Canada, Prime Minister Justin Trudeau and his Liberal Party of Canada were able to use marijuana legalization as a wedge issue that helped bring voters over to their side, especially young people.
Considering that the majority of Americans support marijuana legalization—up to 61% according to a recent poll by the Pew Research Center—and you may have an issue that will divide Republicans and Democrats, but end up favoring the left. (Source: “About six-in-ten Americans support marijuana legalization,” Pew Research Center, January 5, 2018.)
It’s safe to say that U.S. marijuana legalization has never had the support that it currently enjoys in this political moment.
While many in the Republican Party still oppose marijuana legalization, some key members of the right have come out in support of the drug.
Former Speaker of the House John Boehner was a particularly unexpected ally when he recently announced that he’d be working with a marijuana company as a consultant.
President Donald Trump also released a statement demonstrating his support for states’ rights when it comes to U.S. marijuana legalization.
While still many leagues behind the Democratic Party when it comes to pot, the Republicans are at the very least shifting to more align with the vast majority of Americans in their support for marijuana legalization.
That makes the marijuana news today another resounding political victory for marijuana companies, and bodes well for the future of marijuana stocks as an opening of the U.S. market would be the Holy Grail of markets for pot stocks.
Marijuana News Today: CRON Stock Rebound
The major marijuana news today in the stock market sees Cronos Group Inc (NASDAQ:CRON) up nearly eight percent after several weeks of sustained losses.
CRON stock’s troubles first began after its latest quarterly report was released.
Chart courtesy of StockCharts.com
While the numbers were positive, showing revenue growth and sales growth, investors ultimately pulled back due to a perceived overvaluation. The market cap simply could not be justified by those numbers, according to a number of analysts.
This prompted a pullback from the company, sending Cronos Group stock down by as much as 15% at one point.
But it seems that drawback has sparked another buying frenzy, sending the stock value up by such a high degree in a single day.
CRON stock has been a volatile one since it first got the bump from landing on the Nasdaq—the first pure-play marijuana stock to do so.
I don’t expect its volatility to subside anytime soon.
Aside from Cronos Group stock, MedReleaf Corp (OTCMKTS:MEDFF, TSE:LEAF) has been one of the more active pot stocks in May.
After the rumors began to swirl of a potential acquisition by Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB), MedReleaf stock has enjoyed a surge in recent months.
Today the stock rose by about two percent.
While the talks are nowhere near concrete, the rumors alone have been enough to spur renewed interest in MedReleaf stock.
Whether an acquisition is forthcoming is anyone’s guess at this point, but if the talks persist, expect MedReleaf stock to be the primary beneficiary.
Canopy Growth Stock
Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED) continues to experience a quiet May.
The largest company in the marijuana industry by market cap has seen virtually no change in its stock value over the past five days.
A quiet May for Canopy Growth stock may precede big moves, as I expect the summer to bring in strong gains across the marijuana industry.
The closer U.S. marijuana legalization comes to being a reality, the better pot stocks across the board will fare.
While Canadian marijuana legalization is currently dominating talks about the industry, a U.S. move would dwarf the Canadian push by several magnitudes.
While we’re still a few years away—at least—from any significant moves made on the federal level toward U.S. marijuana legalization, Harris’ backing of the bill alongside nearly every other Democratic presidential front-runner is a huge move toward marijuana legalization and makes it all but a certainty should a Democratic occupy the Oval Office in 2020.