[ad_1]
Canadian cannabis companies had a blow in the arm Wednesday as American voters from three states decided to legalize the drug and that one of their biggest political opponents resigned.
Tuesday's mid-term elections have mostly drawn attention to the balance of power in Congress, but investors have focused on voting initiatives to legalize marijuana for recreational purposes in Michigan and the United States. North Dakota, while permitting the use for medical purposes in Utah and Missouri.
Both medical initiatives have been adopted, as well as those in Michigan, but voters in North Dakota have decided to reject his marijuana use for recreational purposes. But the other three coming states mean that 33 American states, plus the District of Columbia, currently allow the legal use of marijuana under certain circumstances – for medical or recreational purposes.
33 US states and the District of Columbia have legalized marijuana in one form or another. (Scott Galley)
"Marijuana is now legalized for adult use in one in five states, so I think it's safe to say that federal laws need an update," said Matthew Schweich, director Deputy Advocacy Group of the Marijuana Policy Project.
Investors clearly thought the same thing, while the shares of Canopy Growth Corp., Aurora Cannabis Inc. and Aphria Inc. rose 8%, 9% and 4%, respectively. Tilray Inc., of Nanaimo, BC, which trades on the Nasdaq Stock Exchange in New York, closed up more than 28%.
Wednesday late in the day, all of these marijuana stocks were pushed up by the resignation of US Attorney General Jeff Sessions, one of the country's most virulent politicians against cannabis.
"If the House turns to the Democrats as expected and if Jeff Sessions resigns after the elections, it will give a new psychological impetus to the adoption of cannabis-friendly legislation," said Chris Damas, editor-in-chief. head of the investment newsletter, the BCMI Report, before the sessions go out.
Analyst David Kideckel of Altacorp Capital, which covers cannabis-producing companies, said Tuesday's election results were slightly positive for the sector as a whole.
"We believe that the tendency of these states to legalize cannabis, whether medical or recreational, is an additional catalyst for the change in US policy at the federal level, which should happen over time."
Democrats who take control of the House also largely support marijuana in the long run, but are unlikely to be enough to bring about firm action at the federal level as long as the status quo is maintained.
"We see this as a positive catalyst for the cannabis sector," he said.
Damascus says that, while thinking that some of the big Canadian names listed above are overexpressed, he advised clients to transfer money to some of the smallest US companies with presences in several states.
Michigan opted for recreational grbad because of its large population, but electoral measures in North Dakota and Missouri were less important.
Utah who opted for medicinal herb was interesting, however, simply because it shares a border with Colorado, the US state where the cannabis sector is the most flourishing.
"I think the tremendous growth of cannabis in Colorado was partly due to the fact that it's an island surrounded by prohibitionist states," he said.
He says Democrats' takeover of the House of Representatives is a positive sign for cannabis in the long run, but it is not clear that the legal pot in the US would be a boon for Canadian businesses. like those listed above.
Instead, he thinks some of the smallest US companies have the most to gain. "US players will soon have as much market capitalization as Canadian companies or more," he said. "In my opinion, they are barbarians at the door of cannabis," adding that he thought it was more likely in the long run that American cannabis names would one day attempt to conquer the big Canadian players rather than the opposite.
"Can Canadian operators miss the train with legally US federal cannabis, the longer it is delayed?" Said Damas. "I would say yes."
Source link
