Marijuana News Today: Pot Stocks Score Big Political Win

marijuana news today 8 june
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Marijuana News Today

Yesterday we discussed just how big the upcoming Senate vote in Canada was going to be for pot stocks. And in the marijuana news today, we have the results: the bill passed.

This is a huge break for marijuana stocks. While not altogether unexpected, the Senate’s vote to pass the legislation puts Canada one massive step closer to bringing marijuana to the people.

The bill now bounces back to the House of Commons, where Parliament will have to vote on the amendments. But with a majority held by the Liberal Party, which first proposed Canadian marijuana legalization, it seems that there will be little standing in the way of recreational pot in Canada. (Source: “Canada clears major hurdle in legalizing recreational marijuana,” Reuters, June 7, 2018.)

This was, as I stated earlier, the last true challenge facing the Canadian pot bill from a political standpoint. While other obstacles could certainly still derail the proposed timeline of the legalization process, it is now highly unlikely that it will be delayed for a political reason.

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Of course, legalization is only a step in the process. Officials have gone on record saying that it will take months after the bill is passed before we begin to see legal  weed available in Canadian stores.

Still, this is a huge win for marijuana stocks. Their outlook for 2018 would have been dramatically changed had the Senate voted to oppose the marijuana bill. Such a move could have delayed the legalization process for many months and would likely have put a dent in many stock values. This outcome, therefore, is a solid win for marijuana bulls.

Some of the amendments included in the bill being bounced back to the House of Commons are tighter advertising restrictions and giving provinces a say on whether Canadians can grow marijuana at home. But it appears that none of these amendments have the power to significantly impact revenue prospects for major marijuana sellers. (Source: Ibid.)

There are still forces as play here that would like to see the marijuana bill delayed—and others that would like to see it killed. But there are few options left to these parties.

The bill, it appears, is going to pass this summer. For pot stocks, this is likely going to be one of the better seasons in recent memory.

While I believe there is a strong possibility of over-hype leading to massive gains, only to be followed up by a correction, I ultimately think that Canadian marijuana legalization will lead to overall gains in the cannabis industry.

For the biggest pot stock retailers, waiting for the chance to finally begin selling their wares to an eager Canadian public will be a huge boon for sales figures—and, by extension, stock values.

CGC Stock News

The marijuana news today was not only positive in the realm of politics, but also in the markets.

While we’re seeing a slight pullback today of a few percentage points across a good number of marijuana companies, overall, the week marked excellent gains for a number of pot stocks.

One such winner was Cronos Group Inc (NASDAQ:CRON). CRON stock is up about 10% this week and, considering its struggles in the recent past, this is a huge win for the company.

Courtesy of StockCharts.com

CRON is still one of the more uncertain marijuana stocks I’m keeping an eye on. That’s because it has a tendency to run counter to the industry trend, often gaining and losing value intermittently.

The volatility of Cronos stock leaves the company in a more vulnerable position when compared to most others, especially for long-term investors.

For those looking for a short-term play, however, the stock offers exactly what you’d be looking for: namely, massive swings both up and down, allowing day traders to make a good buck off of the company, if played well.

Aurora Cannabis Stock News

While Cronos Group Inc stock registered an impressive week, perhaps no marijuana company came out quite as well as Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB). Aurora Cannabis stock jumped by nearly 15% over the week, putting it among the biggest winners in early June.

As I mentioned earlier, marijuana producers are chomping at the bit to begin distributing retail pot in Canada, but perhaps none more so than Aurora.

Why is that? Because Aurora is pegged to become one of the biggest, if not the biggest, marijuana producers in the world.

The company’s acquisition of MedReleaf Corp (OTCMKTS:MEDFF, TSE:LEAF), while delayed, is likely to push the company into the top spot in terms of market cap and production capacity.

With Canada likely seeking out large and capable companies to help supply Canadian marijuana legalization, it makes sense that Aurora Cannabis Inc would be one of the major beneficiaries.

CGC Stock News

While we saw major gains for many marijuana stocks this week, one company that had a rather muted beginning to June is Canopy Growth Corp (NYSE:CGC).

The company has been riding high ever since it listed on the New York Stock Exchange (NYSE). The NYSE listing was a huge coup for CGC stock, and the company enjoyed a number of strong gains as a result.

While Canopy Growth stock still gained over a percentage point this week, it hardly compares with the double-digit gains exhibited elsewhere.

The legal marijuana industry also took a slight hit at the beginning of Friday, starting the day down a percentage point or so, but that could change as the day goes on.

Overall, June has been off to a solid start for marijuana stocks.

Analyst Take

In 2018, there is no bigger event for marijuana stocks than Canadian marijuana legalization.

As I’ve said on numerous occasions, this is about more than just the Canadian market. All of the other G7 countries will be watching to see how Canada handles recreational pot.

Everything from increased tax revenue to a decrease in crime could help sway other very powerful countries to look into their own legalization process. This could open up the legal marijuana market even more and make it truly global.

That is the best-case scenario, of course, but it is one that marijuana producers are actively hoping to achieve.

If all goes well in Canada, this could be the moment when the marijuana industry truly explodes, with multiple countries following suit.

It won’t happen overnight, of course, but it could be a huge boon to marijuana stocks. In the near term, pot shares are up and are likely to continue that trajectory as legalization nears.

The correction is now firmly behind us, with multiple weeks of consistent gains on the books. Things are looking up in the marijuana stock market.