Marijuana news today
Today's marijuana news has again given us a transfixation at that important turning point for pot stocks: legalization of American marijuana. A new poll shows again that a large-scale American support for weed reform.
Gallup, Inc. has published a survey showing that the preference for marijuana legalization in the US has remained strong since it launched a similar study in 2018.
Two-thirds of Americans now support cannabis legalization, in line with last year's figures. Even more impressive are those figures representing majorities in three major political categories: democrat (76%), republican (51%) and independent (68%). (Source: "Outbreak due to vapening injury has no adverse consequences for legalization of marijuana, Gallup Poll shows," Forbes, October 23, 2019.)
The most important number there is in my opinion that 51% of Republicans are now in favor of some form of legalization of marijuana.
Given that the Democratic Party now paints itself as the party to marijuana reform, with almost all major candidates for president as pro-legalization, the fact that a majority of Republicans are also in favor of this approach, is a good omen for the viability of a bill in Congress.
At present, the Senate is one of the major obstacles to legalizing marijuana in the US. While the House is controlled by Democrats and could probably collect votes for marijuana legalization, the Senate is another story.
It is not even agreed that there is not enough support to approve a bill (there are probably enough Democrats and Republicans who could come together and see the bill approved). Much of the problem lies with Senator Mitch McConnell.
The majority leader of the senate is not interested in viewing a marijuana reformation. And given that McConnell, leader of the majority, has enormous amounts of power in the Senate, he can effectively become a one-man blockade.
The next step for legalizing the American marijuana would be that McConnell is either deposed by a Democratic majority or retires and replaced by a fresher faced Republican senator who may not be as determinedly anti-pot.
Aside from political machinations, the great advantage of the Gallup survey is that marijuana is popular among American voters, and that could mean more state-level legalization.
And I will repeat this for the umpteenth time: the federal legalization of marijuana in the US would suggest an increase in the stock prices of marijuana reminiscent of the early days of legalizing marijuana in Canada, probably with a three-figure profit.
One of the benefits of the current downturn in the marijuana stock market is that pot stocks are now ready to see even greater profits than they would otherwise have experienced when the American marijuana was legalized.
Now that prices have fallen, there is much room for huge increases in the coming months and years. This would make the legalization of American marijuana the perfect catalyst to accelerate that growth.
The marijuana news today regarding the stock market is also pretty positive. Or at least it is certainly better than in the recent past.
Many pot shares have remained flat today or have experienced different growth points. Considering how hard the market has been affected by the recent correction, that is indeed very good news.
Moreover, we have some support from Wall Street for selected pot shares, which is also welcome news.
One company in particular, Cronos Group Inc (NASDAQ: CRON) has received goodwill from Wall Street in recent days, which translates into stock price growth.
CRON shares today won 1 percent in early morning trading.
And earlier this week, the share rose to five percent later Stifel Financial Corp. (NYSE: SF) analyst Andrew Carter has upgraded the Cronos stock from & # 39; holding & # 39; to & # 39; buy & # 39; and lowered its price target from $ 16.50 to $ 14.00. (Source: "A Wall Street analyst has crowned Canadian cannabis company Cronos Group as" new king in the north "and upgraded its shares to" buy "(CRON)," Markets Insider, October 18, 2019.)
This of course helped to increase CRON shares, because Wall Street trust is almost always a blessing for a company.
Carter repeated things that I have long said in this column, namely that legal marijuana is a huge industry of one hundred billion dollars just starting.
"We believe that renewed enthusiasm from investors is inevitable, as we take into account the $ 200 billion global opportunity caused by regulatory and demographic headwinds," Carter wrote. (Source: Ibid.)
While the legal cannabis industry continues to grow and get a foothold in countries around the world, we are going to see stock prices rise. Investors who are leaving the ship now will probably look crazy when the pot share market returns to strong.
Given their current bargain prices, stocks such as the Cronos Group are ready to see huge gains in short periods when the recovery of marijuana finally begins.
Another marijuana file that is doing well today is Tilray Inc (NASDAQ: TLRY). Tilray shares reached a point in early morning trading today. The TLRY stock has also increased by around three percent in the last five days.
Good news for Tilray stock investors came to the market for cannabis-infused beverages via the company's exit. The company wants to make cannabidiol (CBD) infused beverages available in Canada in December. (Source: "Tilray, Budweiser parent launching CBD drinks at the end of 2019," BNN Bloomberg, October 10, 2019.)
To do that, Tilray has a partnership with Anheuser Busch Inbev NV (NYSE: BUD), the largest brewer in the world, selling many popular beer brands such as & # 39; Corona & # 39; and & # 39; Budweiser & # 39 ;.
The joint venture would see CBD infused drinks on the shelves and potentially open a whole new revenue stream for both companies. After all, there is enormous potential in cannabis drinks.
Combine that with the growing interest in CBD around the world – not to mention the fact that the US has legalized CBD, so we could see this product landing in America in the near future – and you have what could prove to be to be one of the stronger games in the marijuana market at a time.
And of course, if CBD infused drinks are going well, Tilray will see the benefits in her next quarterly report, earning revenue and making prices for TLRY shares.
Tilray shares are in a very strong position to see large gains in the coming months if the rollout of CBD drinks goes smoothly.
CRON & TLRY Stock Performance
The performance of CRON shares (black line) and TLRY shares (blue line) in the past week can be seen in the graph below:
Chart courtesy of StockCharts.com
The marijuana news today was a nice outcome to some of the downfall and gloom that has plagued the industry lately. Although I am still very optimistic about pot stocks in the long run, there is no doubt that marijuana stocks have made a bumpy ride lately.
But again, today's news shows that the future of the cannabis industry is still very bright. Pot stocks are not only ready to recover, they are ready to see huge growth in the coming years as the legal pot sector expands into a global empire.