Marijuana News Today: Marijuana Industry Faces Drawback, but the Summer Looks Bright

marijuana news today 28 may

Marijuana News Today

In the marijuana news today is a poll out of eastern Canada that came back with less-than-stellar results.

A recent survey showed that for residents of the province of Nova Scotia, there isn’t too much excitement bubbling around Canadian marijuana legalization.

The poll found that of the 400 residents surveyed, only 22% said they would consider purchasing cannabis once it becomes legal. (Source: “About 22 per cent of Nova Scotians plan to buy marijuana once it’s legal, survey says,The Star Halifax, May 27, 2018.)

Naturally, this is a bit of a setback considering many investors are watching the marijuana legalization process in Canada to get a feel for just how many people are out there pining for legalized pot.


The survey showing 22% is hardly the kind of number that pot enthusiasts hope to see.

The numbers broke down to favor younger respondents, who said they were more likely to buy marijuana when legalized compared to older residents.

Men were also more likely than women to say they would buy marijuana once legalized.

So what’s the takeaway for the markets?

While this poll is not going to have any profound effect on marijuana stocks in the near term, what the survey indicates is of more value to investors.

You see, there is a strong contingent of analysts that believe the marijuana industry is overvalued. We’ve discussed this at length over the past few months.

In fact, the primary reason for the massive correction that benighted the industry was that many investors and analysts felt that it had grown too fast at the end of 2017. During that time, we saw triple-digit growth over three months.

So overvaluation is a big concern in the industry. Polls like the one released by MQO Research add fuel to that particular fire.

Naysayers will often point to Canada as being too small a market to justify such massive market caps among the publicly traded marijuana companies. The numbers, at first glance, will bear their concerns out. Production capacity of the major marijuana companies in Canada far outstrip even the rosiest projections of demand.

But that doesn’t tell the whole story.

The top marijuana companies are not preparing for Canadian marijuana legalization—or at least, not exclusively. They are positioning themselves to take advantage of the growing global market and use Canada as a home base from which to grow in legal safety.

No other country on earth offers the combination of legal backing and economic resources that Canada can, allowing these pot stocks to grow and be ready to take advantage of the burgeoning international marijuana market.

Another caveat to this survey—and why pot bulls need not be too concerned—is that Nova Scotia is a smaller, more rural province.

With less than a million residents, this is hardly the expected hub of activity for marijuana users in Canada.

Provinces like Ontario, with several metropolitan areas, are more likely to yield better results on these polls.

If you were to see a survey come back where only 22% of Toronto residents said they were looking forward to marijuana legalization, then there would be cause for concern.

As it stands now, however, I don’t see these poll numbers being indicative of a lukewarm reception to marijuana legalization in Canada.

Marijuana News Today: CGC Stock

Chart courtesy of

Bolstered by its New York Stock Exchange (NYSE) listing, you’d expect to see Canopy Growth Corp (NYSE:CGC) to be on a bit of a high. But that has not been the case for CGC stock to start the week.

The company is down 4.6% to start the day. This follows what appears to be an industry-wide downturn in the marijuana news today, with some of the top pot stocks seeing drops in stock value.

CGC stock is the worst performer we’ll be looking at today, and its drop is rather significant.

It appears that we may be experiencing a mini-pullback today following what has otherwise been a very successful May for the marijuana industry.

CGC stock, in particular, showed massive growth over the course of the month.

It is worth noting that Cronos Group Inc (NASDAQ:CRON) also enjoyed a strong run during its listing on the Nasdaq, only to follow that up with volatile and uneven performances for the following months.

While the hype train was guaranteed to entail a bit of a drawback, the future forecast for CGC stock is bright.

Aurora Cannabis Stock

With its acquisition of MedReleaf Corp, Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) finds itself having been through a volatile, if ultimately successful, May.

Today, as I mentioned above, we’re seeing a bit of a pullback with a three-percent dip. But I don’t think there’s too much to fear based on that poor performance.

There’s nothing specific in the marijuana news today that would single out Aurora Cannabis stock for a drawback, and this appears to be an industry-wide reaction.

There is a chance that this could impede some of the progress made in May, but I believe that, ultimately, the industry will recover and get back into the black for June.

CRON Stock

While May brought in strong gains for many marijuana companies, one company stood out as perhaps having been left behind: Cronos Group Inc.

The company was hit with charges of being overvalued by naysayers and skeptical analysts following the company’s most recent earnings report.

CRON stock, in general, has been unable to develop sustained momentum for its stock, instead experiencing uneven swings up and down while other pot stocks enjoyed relative success in May.

Today, we find CRON stock down nearly two percent. Hardly a debilitating fall, but many CRON stock investors are wondering when the company will be able to right the ship and show sustained success.

Analyst Take

The marijuana news today was less positive than we’re used to in May, especially when you look at the marijuana stock market.

While we were happy to see at least one big gainer most days over the past month, today we’re seeing a drawback that is not altogether unexpected.

From potential rate hikes in Canada on the way to political upheaval in the U.S., markets are going to be particularly vulnerable to volatile swings with so many trade deals in dispute and geopolitical unrest.

But the summer outlook for the marijuana industry as a whole looks rosy.

I expect to see a bounce back in June and don’t believe this drawback will last long.