Marijuana News Today
The marijuana news today once again features the medical marijuana market, as two U.S. states look to expand distribution of medicinal cannabis.
In New Jersey, the state government has opened the licensing application process in order to increase the number of medical marijuana companies from six to 12. (Source: “New Jersey launches application process to double medical cannabis licenses,” Marijuana Business Daily, August 13, 2018.)
On top of that, the state is reportedly looking into a recreational marijuana bill that could hit the state legislature as early as next month.
Around 28,000 patients are served by the New Jersey medical marijuana program, climbing rapidly from 16,000 at the end of 2017. Governor Phil Murphy is said to be a staunch supporter of the expansion.
Sales could hit between $30.0 million and $35.0 million, marking about a $10.0-million increase from 2017.
In New Jersey, the marijuana news today reflects a strengthening push for laxer regulations, with a potential recreational pot bill in the near future.
Meanwhile, not too far away in Michigan, the state board has approved 16 medical marijuana licenses. This is critical to the state’s legalization process since, by September 15, any dispensary that does not have a license will be shut down. (Source: “State board approves 16 medical marijuana licenses,” Michigan Radio, August 13, 2018.)
Michigan is increasing the licensing numbers in order to help meet the demand for the drug once the unlicensed dispensaries are made inoperable by the September deadline.
For marijuana bulls, this is cause for celebration. As I’ve said countless times, each state that legalizes the drug brings us one step closer to the inevitable endpoint where the federal government will be forced to make a move on legalizing pot.
It’s simply absurd to suggest a reality in which the majority of Americans have legal access to a drug on the state level but not at the federal level. Marijuana would still be technically illegal according the federal government, even if all of the states had laws on the books permitting pot use.
We’re nearing that threshold every day now, with U.S. states becoming increasingly permissive in their marijuana policies.
Not to mention that we’re seeing more lawmakers take direct action on marijuana in 2018.
Before, politicians often punted the marijuana issue to constituents through referendums and direct voting. Now, however, they are showing increasing willingness to argue in favor of marijuana legalization, showing how the political sentiment on pot has changed for the better.
Overall, New Jersey and Michigan opening up to more medical marijuana businesses is great for the industry and for pot stocks.
Speaking of greatness and pot stocks, we have more good marijuana news today after the marijuana stock market had a stellar week.
Canopy Growth Corp (NYSE:CGC) stock gained about seven percent from the beginning of last week, which was one of the best outings for the stock in a couple months.
The Canopy Growth stock price was bolstered by the company’s announcement that it has cemented its stakes in the South American market. The company now has Spectrum Cannabis Chile SpA fully under its control. (Source: “Canopy Growth Announces Further Consolidation of Latin America Assets with Full Acquisition of Spectrum Cannabis Chile,” Cision, August 9, 2018.)
CGC stock remains one of my top picks in the legal marijuana industry, due to its ability to not only make strong gains, but also weather corrections better than most other pot stocks.
Early-morning trading today had Canopy Growth stock down about one percent, so we’ll see how this week plays out. And it is still far too early to tell if the worst parts of the marijuana stock market pullback are over.
Another strong performer last week, although not as strong as Canopy Growth stock, was Cronos Group Inc (NASDAQ:CRON).
Up about three percent, Cronos stock didn’t have any major announcement to help bolster its value, but was carried upward on the tide of goodwill that flooded the entire marijuana market.
The downturn has been hurting pot stocks for about two months now, so investors have been looking for something to celebrate.
CRON stock was down about half-a-percent in early-morning trading, but that could very well change by the end of the day.
What we’re looking to confirm now is whether last week was an outlier or a breaking of the correction.
If the trend continues upward, I expect we’ll see pretty strong gains between now and the Canadian marijuana legalization in the fall.
CGC & CRON Stock Performances
Check out the chart below of the recent performances of Canopy Growth stock (black line) and Cronos stock (blue line).
Chart courtesy of StockCharts.com
The marijuana news today once again marked political victories in the U.S., but the more important event to keep your eyes on is the eventual end of the marijuana stock market correction.
Last week saw one of the best gains for the pot stock market in recent months, and that could be the beginning of the end of the pullback.
If that’s the case, expect to see solid gains for the next month. The only way to tell, however, is to see sustained growth in the coming weeks. If we see that, then marijuana bulls will really have cause to celebrate.