With new promises for positive marijuana legislation in the works, it seems as though many are happy with the upcoming state of the cannabis industry. recently, Senator Cory Gardner struck a deal with the president after stalling the president’s nominees for U.S. Department of Justice back in January. The move for the stalling comes after Attorney General Sessions worked toward overturning the Obama era legislation policy that made sure the federal government was not interfering with individual state law. With Gardner’s home state of Colorado helping to lead the fight for marijuana legislation, it seems now that anything is possible.
After blocking nominations for some time, Gardner was finally able to come to a deal with the president. Trump and Gardner decided that the national government would continue to not interfere with individual state law, in regard to prosecuting marijuana-based companies acting within their state laws. Many have stated that this agreement could mean the flourishing of some stocks in the industry but only time will tell.
Back when Trump decided to put Jeff Sessions in place for Attorney General, many in the cannabis industry were scared as to what ramifications this would have for all of the action they had put forward up until this point. Sessions has stood against the use of cannabis for a long time, stating that “good people don’t smoke marijuana.” The move by Sessions to overturn the aforementioned policy was met with a large amount of criticism within the industry, but the new deal has helped to show that the national government will not interfere nearly as much as before.
This news has had a good impact on marijuana stocks, and it continues to look as though the potential for a boost in prices may happen. The deals news helped to light a fire underneath several of the top marijuana stocks in the market as of last week. The largest move in the industry came from Aphria (NASDAQOTH:APHQF) with shares jumping as much as 15%. Many are wondering as to why a Canadian stock would respond so positively to news that only seems to pertain the U.S. The Canadian market is undoubtedly tied with that of the American market. It seems as though both markets have been able to boost each other up, relying on correlation and partnerships to grow the industry as a whole. Many Canadian companies have also begun to set up shop in the U.S. with growing positivity on an individual state level regarding cannabis legislation. Aphria has a large presence within the U.S. because of this, which means that the correlation continues to be high.
Other stocks in the Canadian market were also able to see a boost with the news such as Canopy Growth (NASDAQOTH:TWMJF) and Aurora Cannabis (NASDAQOTH: ACBFF), which rose by 7% and 8% respectively.
One of the companies that many have been watching given this new deal is Scotts Miracle-Gro (NYSE:SMG). Scotts has a large position in the U.S. cannabis market, helping growers to receive the products they need to grow the best plants. Although the stock only managed to move up by around 1%, many investors believe that it could potentially go up as more news hits the market.
The short term of the cannabis industry remains very interesting as new companies are beginning to emerge given the lax legislation for the market. The hopes are high that more positive news can continue to reach investors, helping to highlight the large benefit of the cannabis industry for the future. Only time will tell what effect this news has on the whole of the marijuana market.
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