President-elect Joe Biden will be good — but not great — for the cannabis industry, analysts, executives, and other experts say.
While Biden has stopped short of endorsing federal legalization, both he and Vice President-elect Kamala Harris, have campaigned on decriminalizing marijuana.
While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it’s pretty hard to get any decent share count leverage.
The U.S. election opened a small but noteworthy gap between Canadian and U.S. cannabis companies last week, underscoring all of the unanswered questions that investors face as access to pot spreads across the world’s largest economy.
New Jersey, Arizona, South Dakota and Montana voted to legalize recreational use last week, while Mississippi and South Dakota will allow medical marijuana. This puts about 21 million more Americans in the reach of cannabis products -- more than half Canada’s total population of 38 million.
It's the moment for which advocates of legal marijuana here have been waiting: Mexican lawmakers, working under a court order, have until mid-December to finalize rules that will make the country the world's largest market for legal pot.
Advocates have long argued that legalization would put a dent in the black market; allow for safe, regulated consumption; create jobs; and cut down on crime.
After years of near-misses, Gov. Andrew Cuomo expects New York legislators to finally legalize marijuana in 2021, getting over past opposition and division for one simple reason - the state needs the money.
In 2018, the cannabis industry represented more than $10 billion and could reach $30 billion in 2026 according to a projection by New Frontier Data, a firm of analysis and research on the cannabis industry, or even $70 billion according to Grand View Research. It would then be equivalent to the tobacco business across the Atlantic. Several American states might now legalize cannabis.
Trading at merely 3.5 times sales and 1.1 times book value, it may be surprising that to see that Aphria's (NASDAQ:APHA) valuation is at rock bottom despite being the biggest marijuana company in Canada in terms of gross revenue. The company controls 14% of Canada's cannabis market share, which is 20% more than competitor Canopy Growth Corp (NYSE:CGC).
Cannabis stocks were mostly trading lower Wednesday and for good reason: a "blue wave" result from Tuesday's presidential election isn't going to transpire, CNBC's Jim Cramer said on "Squawk on the Street."
What Happened: Heading into Tuesday's election, a major Democratic victory across multiple branches of the government was considered to be a major catalyst for cannabis stocks.
"There was a belief that a blue wave would immediately mean that everybody can start smoking recreationally and drinking," Cramer said.
These are challenging times for the cannabis industry — public company stock prices are sagging, unsold inventory is growing, and Cannabis 2.0 feels more like Cannabis 1.1.
Hackers exposed roughly 3.4 million user records, together with usernames, electronic mail addresses and IP addresses, of marijuana cultivators at GrowDiaries.com, a web-based neighborhood the place growers weblog about their crops and may promote seeds to different growers.
The safety breach occurred Sept. 22 and was reportedly found Oct. 10 by Volodymyr Diachenko, a database safety researcher.
