Marijuana Stocks Get Absolutely Crushed

While I’m not quite the savviest of investors, I do have a keen eye for stocks in emerging markets, and for many years, I’ve considered “pot stocks” to be an emerging market as legalization grows across the USA and Canada.  With marijuana becoming more mainstream, there are no shortage of stocks that allow the average armchair investor to get some skin in this lucrative game.

However, yesterday provided a massive speed bump to all of us who do indeed have skin in the game.  I’ve surfed many investment sites and financial portals, and have a lot of stuff to say about what happened.

Note:  I don’t offer financial advice.  Invest at your own risk.

Again, I read a lot about this, as I have a few companies I’m invested in.  This report on Market Watch was a good read.

This sort of gut punch that happened yesterday was explained in great detail, and according to Market Watch’s article, the average investor has lost 75% of it’s value over time in the marijuana space.

A big catalyst for this was an announcement by marijuana company Hexo, which goes by HEXO on the ticker.  Net revenue for the fourth quarter will be about $ 14.5 – $ 16.5 million, and net revenues will be between $ 46.5 and $ 48.5 million for the year.  These are both below expectations.

  • HEXO alone fell over 20% yesterday.

Other news that has not been so helpful is that MedMen decided NOT to purchase Pharmacann, which would have been a $ 600 million deal.

  • The vaping crisis is NOT helping the cause either.   Consumers are jumping ship on buying vape pens and devices that were otherwise strong sellers.

The article continues to go on and suggest that you pick points when the selling of marijuana stocks is at a high, and buy stocks that have concepts that will work long term.  Trends, (which could be vaping related) are not a reason to buy a stock.  If there are spikes off these lows, it’s best to sell.  It’s going to be a rocky road coming up, which is entirely my take and not related to the article’s articulation of the sell off yesterday.

Strap up, it’s going to be wild for anyone who has money in this space.

Shane Dwyer
Author: Shane Dwyer
Shane Dwyer is a cannabis advocate who isn’t afraid to tell the world about it! You can find his views, rants, and tips published regularly at The 420 Times.

Marijuana & Cannabis News – The 420 Times

Legal Weed Plan Unveiled, Pot Stocks Rally

If you are holding any marijuana stocks in your investment portfolio, you are probably a happy camper.  A bill led by New Jersey legislators and Governor Phil Murphy talked about a plan to make adult-use marijuana legal in the state.  There were also proposed taxes and what they called an “Expedited expungement process” for anyone who had a lower tier marijuana conviction.  When this news came out, a large number of the pot stocks surged.

Pot Stocks Rally on New Jersey Bill

New Jersey is the “Garden State,” so it makes sense in that moniker alone that they would legalize marijuana.  It’s still illegal federally in the USA, but we already have ten states and the District of Columbia allowing it for recreational purposes, with others not too far behind.

Some of the major cannabis companies traded enjoyed solid gains today.  Even lowly penny stocks that I’d like to see rally, like Growblox, went up 2.78%.

Also talked about in the bill was that municipalities housing cultivators or manufacturers could enjoy revenue from a 2% tax on the products residing in their jurisdiction.

Of course, this has to be signed into law before any of this happens.

Should it happen, the market would be under the governing body composed of a Cannabis Regulatory Commission, which is a team of five people hand chosen by the governor.  Applications for licensing would be handled by them, as well as regulatory promotions.

A tax of $ 42 an ounce would be charged to cannabis growers, and any municipality that has a retailer would get revenue from a 3 percent tax on anything sold there.  That’s a solid way to make a ton of money, just ask the City of Las Vegas, which unleashed this cannabis super store just last fall after having many smaller venues since launching recreational weed in July of 2017.

Even Canadian growers enjoyed big gains thanks to this announcement.

Highlights of Stock Gains:

  • Cronos Group :  up 4.5%
  • Canopy Growth:  up 3.7% (I wrote about their partnership with Martha Stewart this AM.)
  • Acreage Holdings:  up 2.7%

If you are invested in pot stocks, today was a good day to enjoy some gains.  Here’s to many more days of gains, and a lot more states following the Garden State’s lead.

Legal Weed Plan Unveiled, Pot Stocks Rally

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Shane Dwyer
Author: Shane Dwyer
Shane Dwyer is a cannabis advocate who isn’t afraid to tell the world about it! You can find his views, rants, and tips published regularly at The 420 Times.

Marijuana & Cannabis News – The 420 Times

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