Marijuana News Today: Major Vote Upcoming in Canadian Marijuana Legalization

marijuana news today 5 june
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Marijuana News Today

In the marijuana news today is a major vote taking place in the Canadian Senate over the final wording of the marijuana legalization bill. If the vote fails, we may end up seeing the much-feared delay in Canadian marijuana legalization.

This is a massive deal for marijuana stocks, and pot investors ought to be keeping a close eye on the results of this vote.

Set to take place on June 7—unless unforeseen circumstances delay it—the vote will be one of the last tests for Canadian marijuana legislation before it makes its way into law.

Due to opposition by the Conservative senators, the bill is by no means a guaranteed pass. It comes down to the many independent senators, many of whom have expressed concerns with the bill.

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At the moment, however, the consensus is that the marijuana legislation will make its way through the senate.

Passing the senate will just be the first step of the process, however. The bill will then make its way back to the House, where members of parliament will have to approve the already-included amendments.

While this game of political ping-pong may not seem like it has much to do with marijuana stocks, I very much believe that the pot stock forecast for 2018 is highly dependent on the outcome of these votes.

You see, many companies in the marijuana industry have been banking on Canadian marijuana legalization since Prime Minister Justin Trudeau first assumed power on the back of a campaign promise to legalize the drug on a federal level.

I’d argue that one of the major reasons we’ve seen such an explosion in value in the market was that promise, as well as the progress made toward legalization.

Pot stocks of virtually every major marijuana company have big stakes in the Canadian marijuana market, and a delay to legalization could be devastating.

In fact, the upcoming Canadian marijuana legalization is one of the reasons I’m so bullish on marijuana stocks.

The opening of the market and the increase in sales that would come as a result would be huge boons to pot stocks across the board.

Many major deals are already in place to supply marijuana to provinces once the federal legislation passes.

While there’s little doubt that marijuana legalization will eventually pass, if it misses the August/September deadline (which is the result of earlier delays), we’re likely to experience a pullback in the marijuana industry.

The stock market is not patient.

Conversely, if this process maintains its pace and avoids further obstructions, I predict a strong summer for the marijuana market.

CRON Stock News

Also in the marijuana news today is an impressive run by several major marijuana stocks.

But perhaps the most impressive pot stock so far in June has been Cronos Group Inc (NASDAQ:CRON).

While the company’s stock price faltered in May when most other stocks were able to see major gains, the beginning of June has brought a stronger showing for CRON stock.

Cronos stock is up about 16% over the past five days. This marks some of the best gains for the company this year.

Chart courtesy of StockCharts.com

 

The problem is that CRON stock has been anything but reliable so far in 2018.

Whenever it shows impressive runs like the one we’re seeing now, it has so far given those gains back in the following weeks.

CRON stock has a lot of potential locked up within it.

In fact, its most recent quarterly report showed sales jumping to CA$2.9 million, up about 473% compared to a year prior. From the last quarter, sales are up about 83%. (Source: “Cronos Group Inc. Announces First Quarter 2018 Results,” Cision, May 15, 2018.)

But until the company can register sustained gains for prolonged periods of time, I would be cautious when looking at CRON stock. It still carries the albatross of overvaluation around its neck, and investors are not quick to forget that label.

Aurora Cannabis Stock News

Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) is another company that has brought in a strong showing to start off the month.

While not nearly as lofty as CRON stock, Aurora Cannabis stock’s two-percent gain is a good start to the month, especially considering how dismal the end of May had been for the company.

Aurora Cannabis stock still remains an intriguing buy, especially following its announced acquisition of MedReleaf Corp (OTCMKTS:MEDFF, TSE:LEAF).

The blockbuster move is taking longer than anticipated to complete, but when the deal is finally sealed, how Aurora Cannabis stock performs in the immediate aftermath will likely have a strong sway on the company’s trajectory for the remainder of 2018.

The merger is certainly one of the most eagerly awaited events in the marijuana market, with many investors interested in how it will all shake out in the pot stock market.

I believe that Aurora Cannabis stock will likely have a volatile few weeks following the merger, but will then stabilize and eventually mark strong runs to close out the summer—provided that Canadian marijuana legalization does not suffer further delays.

Aphria Stock News

Another strong performer over the past five days was Aphria Inc (OTCMKTS:APHQF, TSE:APH).

Alongside CRON stock, Aphria stock has been one of the more volatile marijuana companies.

After suffering through losses for most of 2018, the stock eventually reached a price that investors were willing to buy in at (something I had predicted from the start of the marijuana downturn), but what I did not see being a problem was just how high the stock would jump following investor reentry.

I believe that the massive spike in value (over 20% in a few short weeks) led to another round of pullbacks because investors are still concerned over the possibility of overvaluation.

Much in the same vein as CRON stock, Aphria stock needs to find a way to prove itself in the eyes of investors and shake the label of overvaluation.

Analyst Take

The marijuana news today shows that there is a lot happening for pot stocks in late spring.

Between major votes coming down the pipe for Canadian marijuana legislation and strong runs taking place in the marijuana stock market, we’re seeing a lot of action that could have profound effects on the futures of many pot companies.

Watch for any delays in Canadian marijuana legislation, since that will be a blow to marijuana stocks.

Conversely, keep an eye on pot stocks, because I foresee good things coming from the industry this month.