Marijuana News Today: Is U.K. Marijuana Legalization Next?

June 20th, 20183:17 am @

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marijuana news today june 19
iStock.com/Rex_Wholster

Marijuana News Today

The marijuana news today is quite exciting—and different—in that it takes us across the pond to the U.K., where lawmakers are arguing for laxer rules governing medical cannabis.

Right now, the marijuana industry’s biggest goal is to expand into new markets. The benefits for marijuana companies are many, but the two main ones are 1) more customers and 2) justification for what is right now considered outsized stock valuations.

The U.K. market is roughly double that of Canada, population-wise, and it is one of the richer countries in the world by gross domestic product (GDP). Having the U.K. open its doors to legal marijuana even slightly would be a huge win for the cannabis industry.

As it stands, U.K. marijuana legalization is still a long ways off, with few concentrated efforts being made in Parliament to radically alter the country’s position on pot.

But in the marijuana news today, the British government has confirmed that it will review its position on medicinal cannabis.

Home Secretary Sajid Javid told the U.K. parliament today that the use of cannabis-based medicines in the health service should be reexamined because the current setup wasn’t working. (Source: “Laws governing medical marijuana could soon be relaxed in the UK,” CNBC, June 19, 2018.)

“It is not satisfactory for the parents, it is not satisfactory for the doctor and it is not satisfactory for me,” said Javid.

The discussion was sparked, so to speak, when the family of a six-year-old boy requested that he be allowed the use of medical cannabis oil in order to treat a rare form of epilepsy. The family’s petition was successful and the boy was granted the right to treatment.

This follows the case of a 12-year-old’s cannabis medication being confiscated at Heathrow Airport after a trip from Canada. That boy also suffers from serious seizures.

As it stands, British law prohibits cannabis oil with more than 0.05% of the psychoactive element tetrahydrocannabinol (THC).

While the U.K. government has been firm that it is not looking to implement any sort of recreational marijuana legalization, other lawmakers in the country have used this moment to voice their concern that the war against pot has already been lost.

If the U.K. relaxes its laws in any significant way, Canadian marijuana companies will likely be able to export pot to the U.K., or at least set up shop on the island.

Any progress of this sort would help assuage investors that there is indeed a global marketplace opening up for legal marijuana. That would likely go a long way toward justifying those ballooning valuations.

ACB Stock News

While yesterday we saw uneven performances across the legal cannabis industry, the marijuana news today is showing mainly winners—with one notable exception (which I will discuss later).

Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) stock is up about two percent over the past two days.

While this news isn’t likely to blow anyone’s mind, the company’s modest gains are preferable to the wild swings that have wracked ACB stock for much of the past two months.

Chart courtesy of StockCharts.com

I’ve always viewed Aurora Cannabis stock as a long-term pick, and it has benefited my earliest readers well (we’re talking triple-digit gains since I began recommending the stock). As such, I prefer to see measured, sustained success to big leaps and deep falls.

We need to see Aurora Cannabis perform like this consistently for a few weeks before I can regain my former bullish self on the stock, but these small victories are good signs. They are better, I’d argue, than massive upward movement, if only because those extremes often engender backlash.

CGC Stock News

One of the biggest winners this week so far is Canopy Growth Corp (NYSE:CGC).

CGC stock is up nearly five percent over the past two days, once again proving why so many investors are still bullish on the company.

Canopy Growth stock has, as noted previously, been one of the most consistent and best performers on the year, and that trend is showing no signs of slowing.

CGC stock currently maintains a dominant position as one of the more reliable stocks in the marijuana industry, due to the company’s size and market position.

In fact, the opening of more legal marijuana markets, such as the U.K., would likely benefit big players like Canopy Growth stock and Aurora Cannabis stock the most, due to their credibility in the industry.

Canopy Growth is still one of my preferred stocks in the marijuana industry, and I don’t see that changing any time soon.

CRON Stock News

From one of my favorite stocks to one that I bear a healthy skepticism toward, we arrive at one of this week’s biggest losers, Cronos Group Inc (NASDAQ:CRON).

When the company first landed on the Nasdaq, I was wary that it would be mostly hype.

Digging around and looking at the company’s particulars, however, I was eventually swayed to be bullish on CRON stock.

After a few weeks of wild swings, I realized that my initial position was the correct one, and I have been proven right for the last few months.

Cronos stock is down by more than six percent in the past two days, and it continues to be one of the stocks I’m most wary of.

While Aurora Cannabis stock has also performed poorly this year, that company’s swings were not nearly as volatile.

Although volatility comes with the territory, this can usually be offset by a company’s strength and size, making the lows less damaging (see Canopy Growth stock).

CRON stock has been unable to achieve stability. As such, it is still, to me, more of a short-term play that mainly benefits day traders, not long-term marijuana bulls.

Analyst Take

The marijuana news today is largely positive, both on and off the stock market.

The most recent push in the U.K. is a great step forward, and hopefully it will lead to more interaction with marijuana stocks.

Being able to provide legal cannabis to such a powerful economy will be a huge boon to credibility, market exposure, and—of course—it will help the companies ward off accusations of overvaluation.

Meanwhile, the marijuana stock market today was largely strong, with a few notable exceptions.

Hopefully, this week’s strong start continues and we see more gains moving forward.

Article source: https://www.profitconfidential.com/marijuana/news-today-is-uk-marijuana-legalization-next/