Marijuana News Today
One of the prevailing narratives this year in pot had to do with the possible U.S. marijuana crackdown that the Trump administration had the potential to implement. In the marijuana news today, we’re witnessing what may just be the death throes of that possibility.
In order to understand why so many were concerned about a U.S. marijuana crackdown in the first place, you need to take a step back and look at the American legal system and how it views cannabis. (Source: “Jeff Sessions Struggles to Get Planned Marijuana Crackdown Going,” The Wall Street Journal, June 10, 2018.)
The drug is legal in its medicinal form in the majority of the country, population-wise. And every few months, it seems a new state puts legalized pot on the books. But federally, the drug is still a long ways away from gaining protections. That’s because the majority of members of both the House and the Senate have yet to come to terms on a plan to modernize U.S. pot legislation.
As it stands, the drug is on par with heroin and meth in terms of being classified as a Schedule I narcotic. But as most of us know, that’s hardly a fair assessment of the green herb.
While the federal prohibition on marijuana had been in place during the Obama years, the former president went out of his way to make protections for pot, saying that it was a state issue and adopting a laissez-faire attitude.
President Donald Trump, however, and more specifically Attorney General Jeff Sessions, were keener on potentially using the power of the federal government to shut down marijuana operations in states where the business was legal.
Such a move would set the U.S. industry back for years, not to mention that it would hurt marijuana industry projections and therefore stock values.
But while the potential for such a move was always there, it never came to pass. In the marijuana news today, we’re seeing possibly the final nail in that drug crusade’s coffin.
While Sessions has gone on record expounding upon the dangers of marijuana and his inkling to use the Justice Department to curtail legalized marijuana growth, the past few months have seen blow after blow land against that pot prohibition push.
In fact, in a departure from his earlier comments about his will to pursue marijuana crimes, Sessions recently told members of Congress that his department is now refocusing on more dangerous drugs.
“I have felt it not appropriate for me to somehow give a safe harbor or protection to areas around the country where it still remains a violation of federal law,” Sessions said at the hearing.
He added that the “threats that we’re focused on in the Department of Justice are fentanyl, heroin, methamphetamine, cocaine, prescription abuses in large amounts [that] lead to addiction and death. Those are clearly where we’re moving.” (Source: Ibid.)
This comes on the heels of a bill that Senator Cory Gardner (R, Colorado) and Senator Elizabeth Warren (D, Massachusetts) introduced on Thursday that would provide further protections for states looking to pass their own marijuana bills without fear of federal reprimand.
“If they’ve voted to have a legal industry, then it would allow them to continue forward without violating any federal law,” Gardner said of the bill.
Gardner, you’ll remember, was also the senator that got Trump on board with marijuana in the first place, coming out with a statement that assured pro-pot states that the president would be leaving them alone.
All in all, this is a major victory for the U.S. marijuana industry.
With more states legalizing the drug and lawmakers supporting groundbreaking legalization to modernize the country’s drug policy, the future looks bright for U.S. marijuana legalization—the Holy Grail of marijuana markets and one sure to bring everlasting stock joy to marijuana companies the world over.
CGC Stock News
Despite the good tidings in the marijuana news today, it seems that the industry is in store for a bit of a regression.
Chart courtesy of StockCharts.com
Since we covered U.S. marijuana legalization today, let’s take a look at the two companies with listings on major U.S. stock exchanges.
Canopy Growth Corp (NYSE:CGC), which has started the day down a few percentage points, losing over two percent in early-morning trading.
Over the past five days, we’ve seen the company drop about three percent.
Those numbers are relatively weak, however, when compared to the strong growth we’ve seen from CGC stock over the past month.
In that time, we’ve seen Canopy Growth stock jump by over 30%, pushed by the industry’s recovery and the company’s New York Stock Exchange (NYSE) listing.
I don’t expect these early-week troubles to persist, or at the very least, be the sign of any long-term falls.
Cronos Stock News
The other company with a listing on a major U.S. stock exchange is, of course, Cronos Group Inc (NASDAQ:CRON).
The company has been one of the least predictable marijuana stocks so far in 2018, with wild swings up and down.
Today, however, the company is suffering the same fate as CGC stock with early-morning falls. But over the past five days, CRON stock gained one percent.
While neither of those figures is anything to lose your head over, CRON stock needs to see prolonged and sustained growth if it wants to regain the trust of investors.
While the early-morning stock market leaves much to be desired, the long-term outlook of marijuana has never been brighter.
The pot industry is edging closer to U.S. marijuana legalization—something that would be a massive boon to pot stocks everywhere.
Moreover, the industry is still heading into what I believe will be a strong summer season for pot stocks.