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

June 21st, 20183:17 am @

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marijuana news today 20 june
iStock.com/Noah Guest

Marijuana News Today

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

Like I’ve said for many months, this was an inevitable result, 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, we have finally removed the final roadblock to marijuana legalization in Canada, and now there are no further potential delays on the horizon.

“It is a step in the right direction and 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.” said Senator Peter Harder. (Source: “Senate passes cannabis legalization bill in final vote,” CTV News, June 19, 2018.)

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

With that in mind, marijuana stocks 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 the industry has faced yet. 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), if things go slower than expected in Canada in regards to sales, that could be quite harmful to marijuana stocks in the near-term. But otherwise, pot stocks should be celebrating.

In a tweet, Justice Minister Jody Wilson-Raybould, who was the bill’s sponsor and first introduced the legislation in April 2017, said it was a “historic milestone for progressive policy in Canada.”

The Senate had initially approved the bill with dozens of 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 are almost certainly not likely to occur.

Overall, this is a great day for the marijuana industry, but the sector still has a lot of work ahead of it proving itself. The smoothness of the Canadian marijuana rollout will have a large bearing on which countries choose to follow suit with marijuana legalization—and which countries choose instead to maintain a prohibitive stance on the drug.

Marijuana News Today: CGC Stock

Chart courtesy of StockCharts.com

In what should be a surprise to absolutely no one, marijuana stocks have been shooting through the roof on the back of the historic vote taking place 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%.

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 also very well be the beginning to 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 more reliable and strongest marijuana companies on the market, perhaps even the industry standard.

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

ACBFF Stock

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 more skeptical light.

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

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

Not to mention that making buys in the middle of the correction may have allowed Aurora Cannabis to score some companies on the cheap—always a good move.

Aphria Stock

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, the 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 CGC stock and ACBFF stock.

The company 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 to be among one of the weaker buys on the market right now, compared to the other companies featured in today’s article. That is largely due to the calls of overvaluation being levied against Aphria, which have affected the company worse than its stock, which has also been the recipient of similar charges.

Analyst Take

This is a huge moment for the industry, and pot stocks can now finally plan in earnest for a quickly nearing Canadian marijuana legalization.

The result of this 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 also 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 industry gains in the coming weeks.

Article source: https://www.profitconfidential.com/news/news-today-canada-officially-legalizes-recreational-pot/