Marijuana News Today
While the mid-term elections in the U.S. this year are receiving more press than usual due to the fraught political state of the country, what’s being overlooked—and what we’re highlighting in the marijuana news today—is that several states will have votes on the marijuana laws in November that could dramatically impact the future of pot legalization in the U.S.
The first state that has a chance to radically alter its marijuana policy through the vote is hardly thought of as a pot haven: North Dakota. (Source: “At The Ballot Box: These Four States Could Legalize Some Form Of Marijuana In November,” Forbes, August 21, 2018.)
That said, our impression of North Dakota may be entirely wrong because medical marijuana passed in 2016 with 64% voting in favor of pot on the ballot initiative.
North Dakota is hardly a market overflowing with people or money relative to big fish like California or New York. But what makes North Dakota truly important is that if it does pass its recreational marijuana bill, that will mark the shortest time between medical legalization and recreational legalization.
North Dakota is also notable in that it is a deep red state. While we often think of the divide over pot in terms of party lines, North Dakota is proving that the debate is far more nuanced than we believe.
Another state that will face marijuana issues at the ballot box in November is Michigan.
The state has had legal medical marijuana available since 2008, so it has had a long time to mull over the positive and negative effects of being a pro-pot state.
Polls show that the majority of Michigan voters support marijuana legalization, making this vote likely to be one of the easier wins for the pot industry.
Another unexpected state with marijuana on the ballot is Utah.
Due to the conservative nature of the state, the plans for medical cannabis legislation are more restrictive than most other bills. But it would still open the door to marijuana in the state.
A large majority in recent polling has come out in favor of Utah medical marijuana legalization, with numbers reaching as high as 77%.
In keeping with the North Dakota numbers, it’s becoming more apparent by the day that marijuana isn’t a “Democrat vs. Republican” issue, but rather, a “pro-pot vs. anti-pot” issue, with those against serving as a continually dwindling minority.
Another state that will put pot to the test in a few short months is Missouri.
There are three initiatives on the ballot for November that all relate to marijuana legalization, complicating the issue and potentially leading to a split vote.
And if all three pass, that could tie up the legal system as it sorts out which ones are enshrined in law and which ones are cast out.
What This Means for Marijuana Stocks Long-Term
The future of the marijuana industry is in the U.S. and Europe.
These two markets alone would dwarf Canada by an order of at least 10. Considering the fervor we’re seeing over Canadian marijuana legalization, imagine how well marijuana stocks will perform when the U.S., with all its money and about 11-times the population, begins to sniff around federal legalization.
It’s why the future is so bright for the industry, and also why there’s so much potential in pot stocks even as they continue to grow exponentially year-over-year.
More states are going to legalize marijuana in November, and we didn’t even touch on the states that may do so sooner.
For instance, New York may draft a bill that could pass without the need for a direct ballot initiative. It’s a rare maneuver that only one state has so far accomplished as politicians would prefer to punt the issue to constituents rather than spend political capital brawling it out for pot.
Still, as the polls continue to sway toward the vast majority of Americans approving of marijuana use, politicians may find their voices sooner rather than later. That, in turn, could radically hasten the U.S. marijuana legalization timeline.
Canopy Growth Stock
The marijuana news today largely serves to inject some excitement into the mid-term elections for those who are not politically inclined. But, on second thought, if you’ve been watching the marijuana stock market lately, you’ll hardly need help finding your enthusiasm.
That’s because we’ve had a great week on the pot stock market.
Following the massive jump in value that came about last week due to the $3.8-billion Constellation Brands, Inc. (NYSE:STZ) investment in Canopy Growth Corp (NYSE:CGC), I anticipated we’d see some sort of correction occur this week as CGC stock rose by 50%.
Sometimes, it feels good to be wrong.
Instead, we’ve seen the industry continue to soar.
CGC stock, the stock you’d expect to be the main beneficiary of the investment, is still flying high, up 19% this week.
The company is also up about eight percent in early-morning trading and is showing no signs of slowing down.
I’ve been recommending CGC stock for several months now and it’s never made me look as good as it is now.
As if the multi-billion-dollar investment and subsequent ridiculous jump in value wasn’t enough, the company also received licenses from Health Canada permitting Canopy to nearly double its production capacity at its facility in Smith Falls, Ontario.
It’s safe to say that August 2018 belongs to CGC stock.
Aurora Cannabis Stock
The company that fancies itself Canopy Growth’s biggest rival is having a pretty great end of the summer as well.
Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) is up about nine percent since the beginning of the week and four percent in this morning’s early trading.
Aurora Cannabis stock is, of course, one of the few companies that can compare to Canopy in terms of size, and that came about after a spate of high-profile acquisitions.
While those acquisitions were hotly debated due to the price tags associated with them—culminating in the multi-billion-dollar takeover of MedReleaf Corp.—the company’s increased production capacity is likely to pay off when pot hits shelves in Canada.
Speaking of the Great White North, Health Canada also approved licenses for Aurora Cannabis, allowing the company to produce soft-gel cannabis capsules at its facility in Pointe-Claire, Quebec.
CGC & ACBFF Stock Performances
Check out the chart below of the recent performances of the stocks of Canopy Growth Corp stock (black line) and Aurora Cannabis Inc stock (blue line).
Chart courtesy of StockCharts.com
This has been the singular best week of the year for the marijuana industry.
The marijuana news today has us excited about the mid-term elections and the expansion of the U.S. marijuana market, while the pot stock market is enjoying the best run it’s had in 2018…so far.
For marijuana bulls, the end of the summer of 2018 is going looking like it’s going to be a very profitable few weeks. So soak in the sun, the warmth, the light…and of course, the gains.