Marijuana News Today: Marijuana Stocks Surge After Canada Officially Legalizes Recreational Pot

marijuana news today 20 june
iStock.com/Noah Guest

Marijuana News Today

Hardly coming as a surprise, the marijuana news today brings us a long-awaited conclusion to the legislative journey of Bill C-45 in Canada, making marijuana officially on the path to legalization in that country.

Like I’ve said for many months, this was inevitable, with marijuana legalization in Canada being more a matter of “when” rather than “if.”

Still, with the Senate’s acquiescence to the House’s bill, they have finally removed the final roadblock to marijuana legalization in Canada. Now there are no further potential delays on the horizon.

Canadian Senator Peter Harder said the following:

…what we now need to do is to insure as we move forward in implementation, that everybody plays their role, that everybody understands the obligations that they have and uses the opportunity of the next number of weeks to inform themselves of what a legal cannabis market means for them, their family, their communities, and the opportunities and risks that it poses.

(Source: “Senate passes cannabis legalization bill in final vote,” CTV News, June 20, 2018.)

This is, of course, a momentous occasion for the marijuana industry. The Canadian marijuana legalization date is now fixed: October 17, 2018. No more questions, no more political jockeying.

With that in mind, marijuana companies can breathe a sigh of relief, as they no longer have to worry about their rollout plans being delayed.

It’s also going to lead to perhaps the biggest test that the industry has faced. A lot of companies are being considered overvalued precisely because analysts believe that the Canadian market is too small to sustain those high market caps.

While that’s true on the face of it, that view doesn’t take into account the larger global market that is constantly expanding.

Justice Minister Jody Wilson-Raybould, who was the bill’s sponsor, said in a tweet that the legislation being passed was “an historic milestone for progressive policy in Canada.”

The Senate had initially approved the bill with dozens of proposed amendments, with the House accepting most of them before sending it back for senatorial approval. But with yesterday’s vote, the final legislative hurdle is now a memory.

The only threat to the marijuana bill remaining is a legal challenge, although any significant delays to the law coming into effect are almost certainly not likely to occur.

Although this was a great day for the marijuana industry, the sector still has a lot of work ahead of itself. The smoothness of the Canadian marijuana legalization rollout will have a large bearing on which countries choose to follow suit.

CGC Stock News

In what should be a shock to absolutely no one, marijuana stocks have been shooting through the roof on the back of the historic vote in Canada.

While I’m not sure just how long these gains will remain, this shot in the arm is a welcome sight for marijuana bulls.

Starting with the industry heavyweight Canopy Growth Corp (NYSE:CGC), we’re seeing massive gains this week in stock value. Over the past three days, CGC stock has jumped by over 10%.

Chart courtesy of StockCharts.com

 

While it’s hard to say whether those gains will prove to be sustainable (the industry is often reactionary to this type of political news, seeing massive bumps in value for short bursts, only to have a correction follow), this could be the beginning of what I see being a very productive summer for marijuana stocks.

CGC stock is, as usual, out ahead of the pack, seeing some of the highest gains so far this week (and on the year).

While Canopy Growth Corp is by no means impervious to the trials that face other pot stocks, it is quickly establishing itself as one of the most reliable and strongest marijuana companies—perhaps even being the industry standard.

As such, I’m only growing more bullish on Canopy Growth stock.

ACBFF Stock News

The next industry giant worth looking at is Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB).

While the company has been unable to match Canopy Growth Corp in terms of gains on the year, it has shot up over nine percent in the past three days, making it neck and neck with CGC stock for the week.

While Aurora Cannabis has become an industry juggernaut in its own right, its more aggressive acquisition strategy has led some investors to view the company in a skeptical light.

Aggressive acquisitions, after all, are often risky moves. While ACBFF stock has yet to benefit from its acquisitions in the near term, that is largely due to the massive 2018 marijuana correction, which we can confidently say is behind us.

With stocks increasing in value and goodwill returning to the marijuana industry, Aurora Cannabis’s avaricious business strategy may pay off with increased market cap, production capacity, and legitimacy.

Not to mention, making acquisitions in the middle of the correction may have allowed Aurora Cannabis to score some companies on the cheap, which is always a good move.

Aphria Stock News

One final industry giant I’d like to look at is Aphria Inc (OTCMKTS:APHQF, TSE:APH).

With the exception of a few weeks in May, this year has not been kind to Aphria stock. Unfortunately, that extends to this week as well.

We’re still seeing gains of about four percent over the past three days, but that’s hardly in keeping with CGC stock and ACBFF stock.

Aphria has been stuck in a funk for most of the year, with its gains being more measured and its losses deeper.

Aphria stock is, therefore, looking at becoming one of the weaker marijuana stocks on the market. That is largely due to the calls of overvaluation being levied against the company.

Analyst Take

The marijuana news today is a huge moment for the industry; pot companies can now finally plan in earnest for the quickly nearing Canadian marijuana legalization.

Legalization is going to have huge ramifications for the future of pot, so marijuana stocks are going to have to be on top of their game.

The Canadian government is going to be responsible for how the next few months play out on the marijuana stock market. A trouble-free rollout is paramount to achieving the level of success that marijuana bulls expect.

While there’s no guarantee that marijuana stocks are going to explode this summer, if everything goes according to plan, we could see very strong gains in the coming weeks.