Buz Investors Best Marijuana Stocks It doesn’t look like U.S. President Donald Trump will be attending galas with Cheech and Chong anytime soon. President Trump and members of his administration, like Jeff Sessions and Sean Spicer, have been generally negative on weed legalization.
Having the federal government go against you will not be a boon if you are in the pot business, but that doesn’t mean the industry is doomed. We’ll go over some of the best marijuana stocks to watch now, with a potentially adversarial presidential administration in power.
The quotes coming out of the Trump administration are pretty down on weed. Here are a couple quotes to instill nightmares in the minds of weed stock bulls and those seeking out the top marijuana stocks.
The marijuana industry (and therefore, the best marijuana stocks) brought in an approximate $6.7 billion in legal sales last year, and that’s without the seven states who voted to legalize marijuana in one form or another on election day. That brings the total up to eight states that have legalized recreational marijuana use and 29 states that have voted to legalize medicinal marijuana. (Source: “What Jeff Sessions Said About Marijuana in His Attorney General Hearing,” Fortune, January 10, 2017.)
Again, the pendulum is swinging in favor of letting cannabis grow free. And yet, through the power of preemption where the U.S. federal government can supersede state laws through its own legislation, even regions where the drug is now legal can experience regression if the feds choose to enforce said laws.
Some of Canada’s major marijuana producers, like Canopy Growth, Aurora Cannabis Inc (CVE:ACB), and Aphira Inc (CVE:APH) saw their stock prices drop 11.3%, 10.6%, and 5.4%, respectively, in the week following Blair’s announcement.
While this has definitely hurt the stock in the short term, the question is: where will they go from here? Aphira stock, for instance, is still up over 20% in the past three months, despite the downturn.
Other companies that are focusing on the medicinal marijuana industry have remained untouched. GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) and Cara Therapeutics Inc(NASDAQ:CARA) have both seen strong gains in 2017, with little slippage.
Cara, in particular, has experienced a wild, roller-coaster 12 months. The company dropped from nearly $17.00 per share at the beginning of 2016 down to below $5.00 a share, only to rise back to its current $17.00-plus share price.
The top marijuana stocks are no doubt strong earners; the question is whether politics will get in the way of all that. For now, marijuana companies are weathering the storm presented by federal government actions in both the U.S. and Canada.
At the same time, nations around the world continue to push toward marijuana legalization in general, with Israel decriminalizing the drug in early March, in a crucial step on the path to potentially legalizing cannabis.
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