With so much news occurring in and around the cannabis stock market, it can be difficult to figure out all of the events that could speculatively be affecting prices within the industry. News such as President Trump’s announcement that the federal government would not interfere on states rights to choose laws for cannabis as well as the Senate Minority Leader Chuck Schumer’s new plans, both continue to change the future of the market for good.

The cannabis industry has seen a lot of changes in the past few weeks in regard to legislation and news. This news continues to affect the prices of many stocks in the industry due to the fact that they are especially contingent upon legalization and laws regarding the substance. This past week towards the end of April, the state of Michigan decided to place a bill on the vote for November that would allow the legalization of recreational cannabis throughout the state. Jamie Cooper, CEO and founder of Michigan-based Cannabiz Connection, stated that “it’s great to see years of hard work come to fruition. I am eager to be a part of the efforts to ensure we are successful in November. This initiative provides so much opportunity to businesses in and out of the cannabis industry. I truly can’t wait to see our economy explode like we have seen it happen in other states.” This explosion throughout the state in terms of tax revenue and the likes, has occurred in many states that have chosen to legalize the use of cannabis. With new legal cannabis comes a new slew of businesses and entities that are all helping to continue pushing the market forward. Because of this, states that allow legal cannabis can expect to see large jumps in revenue across the board.

Debra Borchardt, CEO and co-founder of Green Market Report stated that “there was some slightly positive news out of Washington D.C. where AG Jeff Sessions seemed to indicate he was open to the idea of more research for medicinal marijuana but still made sure everyone knew he wasn’t going soft on cannabis just yet.” The effect of the speculation in the cannabis market means that anytime there is a news release, stocks are either positively or adversely affected. This can make it difficult to actually gauge the price targets and other factors for stocks in the cannabis market.

One of the most promising ventures throughout the cannabis market continues to be the reality of mergers and acquisitions. Borchardt continued to state that “in the business world, the acquisitions continue to be the big news as numerous deals were announced this week and a big private placement of $35 million went to AltMed, an investment of CannaRoyalty.” Some of the declines from the last week in cannabis have come from uncertainty on some principles of legislation in the market. Because of this, the United States Marijuana Index, which is comprised of 17 of the largest marijuana stocks in the U.S., lost 2% over the week. The North American Marijuana Index, which includes some Canadian stocks in the market, reported losses of almost 5%. These numbers are not anything to worry about as they are indexes that just track the daily movement. Overall, the movement in the long term of these stocks has remained quite positive. Marijuana is a market that should be judged in the long term as the future of cannabis remains incredibly bright. The hopes are high that the cannabis industry can continue to post gains as it has since its inception.

MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
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