Marijuana News Today: U.S. Marijuana Legalization Could Expand in November
Marijuana News Today
In the marijuana news today, we’re seeing several states gear up for ballot fights that could determine the future of U.S. marijuana legalization. Meanwhile, smaller towns are pushing back in areas where the drug is already available.
November is already set to see Michigan vote on whether to legalize recreational marijuana, while Utah will be able to cast ballots to legalize medical marijuana. (Source: “Marijuana politics evolving in red states,” The Hill, July 10, 2018.)
While those two votes are already locked in, other states across the Union are potentially also going to hold referendums on marijuana. Missouri, for instance, could have as many as three separate marijuana-related measures make the ballot.
Oklahoma, which recently became the 22nd state to legalize medical marijuana, could also see a ballot initiative for legalizing recreational pot.
Several other states, including Arizona, Nebraska, and North Dakota, may also see legalization votes coming down the pipe in November. The push for U.S. marijuana legalization is growing; that much is undeniable.
The majority of the U.S. population already has access to weed in one form or another, with the majority of states likely to have some form of marijuana legalization within a couple of years.
The question, as always, is when the federal government will step in and give the people what they so obviously want: nationwide legal access to pot. While the state initiatives are going a long way toward making U.S. marijuana legalization a reality, that doesn’t mean there won’t be hurdles to overcome.
In Massachusetts, for instance, several towns have attempted to curtail the sale of recreational marijuana in their communities, even though the drug was legalized on the state level. (Source: “Opponents of marijuana ban called ‘potheads’ and booed at West Springfield council (video),” MassLive, July 9, 2018.)
These types of political battles are going to take place throughout the U.S. as the country moves toward a more weed-friendly arrangement.
Still, marijuana stocks can only be looking at all this in a positive light. Simply put, there’s no way that the U.S. can avoid legalizing recreational marijuana forever. The momentum building hit critical mass long ago, and now legalization is just a matter of time.
It’s worth noting that in Canada, Prime Minister Justin Trudeau and his left-leaning government were able to effectively parlay a pro-marijuana stance into a political victory. Democrats in the U.S. would do well to take heed of that success going into the 2020 presidential election.
As for marijuana stocks, the closer the U.S. gets to full marijuana legalization, the closer they’ll get to fulfilling the true potential of this market. And should U.S. marijuana legalization spread from a federal level, expect other countries around the world to take notice and potentially follow suit.
Canopy Growth Stock News
It appears that Canopy Growth Corp (NYSE:CGC) is not going to have the best of weeks this mid-July. The company found its stock price down about one percent on Monday and down a further 1.5% in early-morning trading on Tuesday.
Chart courtesy of StockCharts.com
The marijuana news today in the pot stock market is muted as the industry recovers from the volatility of late June.
As I’ve said multiple times before, that isn’t necessarily a bad thing—unless you’re a short-term trader. For long-term CGC stockholders, a few percentage points here and there won’t crush the stock.
While these losses may end up building into double-digit drops over time, the legal marijuana industry will bounce back as we near the Canadian marijuana legalization date of October 17.
In fact, I expect that to be the pattern for Canopy Growth stock moving forward: slow declines followed by massive spurts upward, followed by temporary corrections. Over the long run, I expect CGC stock to perform quite well in the second half of 2018.
Cronos Stock News
It’s hard to argue with Cronos Group Inc‘s (NASDAQ:CRON) success as of late.
The company has been one of the best performers over the past few weeks and months, up about 12% from a month ago, while several of its major competitors have only gained about three percent in that same time period.
Of course, CRON stock has often marched to the beat of its own drum in 2018. The company has been one of the more independent stock performers, usually bucking industry trends.
The future of Cronos stock, therefore, is usually harder to predict. Having said that, it’s looking brighter than it has in a good while.
While I’m still not entirely sold on CRON stock again, it is building a case for itself as it outperforms industry averages in the summer months.
Aphria Stock News
Another company that has underperformed in 2018, Aphria Inc (OTCMKTS:APHQF, TSE:APH), has seen strong gains over the past few days. Or, rather, I should say relatively strong gains.
APHQF stock is mirroring CRON stock at the moment, albeit to a lesser degree. Still, Aphria stock has climbed by about two percent over the past four days. CGC stock, in that same period, is down about a point and Cronos stock is up by three percent.
While none of those numbers are enough to make one’s head spin or one’s mouth fill with saliva, it’s still encouraging to see Cronos and Aphria mount comebacks.
I was bullish on Aphria stock’s recovery throughout the year, and that outlook was rewarded when we saw an impressive jump a few months back. What I wasn’t anticipating was that the company would immediately give those gains back.
For me, it’s still too early to get back on Aphria stock with full confidence. But it is worth keeping a close eye on the company.
Analyst Take
The future of U.S. marijuana legalization is not in doubt. It will come; it’s just a matter of time. But of course, for marijuana investors, timing can mean everything.
The November elections represent another big milestone toward full legalization, but we’re still looking at years of waiting before the U.S. federal government moves on the issue.
In the meantime, the marijuana stock market has been moving slowly in July, and that’s to be expected. June was a wild ride, and the legal cannabis industry is looking to calm itself before the next wave of booms and busts.
