Marijuana ETFs are Moving

Since the elections in early November, marijuana stocks and marijuana ETFs have been moving higher at a healthy clip. Now may be a perfect time for investors who have been waiting to get into this industry but didn’t want to be too early.

The moves come after four States passed the legalization of recreational marijuana use, which now brings the total number of US States to 15 that allow citizens to consume marijuana in essentially the same manner that someone’s consumers alcohol.

Furthermore, 2 more States passed laws allowing marijuana to be used for medical purposes. Now the US has 35 States that allow medical marijuana usage.

Another catalyst is that with Vice President Joe Biden winning the White House, many believe the push for national level decriminalization of marijuana is more likely to occur. This is even though the Republicans still control the Senate.

Finally, as I have mentioned before, with the pandemic and massive budget deficits occurring all around the country, State and local governments, and even perhaps the Federal government may start looking at alternative ways to increase tax revenue. One easy avenue is to allow marijuana use and place a hefty tax on it, as the government already does with alcohol and tobacco sales. As things currently sit in most States, those that have not passed the legalization of recreational use would argue that marijuana is being sold; it’s just not being taxed. Most politicians would probably agree with that to some extent, and some would undoubtedly love to get some more tax money, especially during times like these. Continue reading "Marijuana ETFs are Moving"

3 Reasons Why You Should Still Avoid MJ, The Marijuana ETF

2018 was a tough year for long-term buy and hold marijuana investors. As a whole, the industry went on quite a wild roller-coaster ride. Marijuana stocks popped in December 2017 as anticipation for the ‘legalization’ of the drug occurred in the state of California on January 1st, 2018. We saw stock prices and the ETFMG Alternative Harvest ETF (MJ) jump as investors anticipated a ‘boom’ for the industry.

But, within a month or so of the legalization date, most of the marijuana-related stocks have fallen in price and MJ was trading below its December 2017 price. A few months went by, and most of the industries stocks just meandered along. Then the next big ‘legalization’ date grew near, October 17th, 2018, the day marijuana became legal in Canada.

The price of most of the well known and many of the lesser-known marijuana stocks, and MJ of course, once again began to ski-rocket. MJ, for example, went from $24 per share in August 2018, to as high as $45 per share, with its peak occurring just days before October 17.

Each time a new State or large country legalizes the drug, the companies in the industry experience an unfound increase in their valuation as investors buy shares at an insanely high rate. This type irrational buying leading up to a hyped up, essentially arbitrary date has put a lot of investors in a really bad place in 2018. MJ for one is down more than 24% in 2018, while other individual marijuana companies have seen their stock prices fall even further. Continue reading "3 Reasons Why You Should Still Avoid MJ, The Marijuana ETF"

Molson Coors Eyeing Canadian Cannabis Partner

Analysis originally distributed on June 28, 2018 By: Michael Vodicka of Cannabis Stock Trades

October 30, 2017 was one of the best days of the year for the young cannabis industry.

That’s the date when Constellation Brands (STZ), the second-largest US beer maker, announced a 10% stake in Canopy Growth Corp. (CGC/WEED), the largest Canadian cannabis company.

It was a groundbreaking moment for the cannabis industry because it was the first time that a big alcohol company had invested directly in a cannabis company.

Not only did it give the young cannabis industry tons of credibility, it also sets the stage for big alcohol to invest billions into the cannabis industry in the next few years.

In the short run, Canopy shares jumped more than 23% in one day on the news.

In the long run, it triggered a 10-week rally in Canopy – and the entire cannabis sector – that sent shares deep into a new all-time high. Take a look. Continue reading "Molson Coors Eyeing Canadian Cannabis Partner"

A New Entry Into Germany’s Cannabis Industry

Analysis originally distributed on June 21, 2018 By: Michael Vodicka of Cannabis Stock Trades

Germany has quickly emerged as one of the fastest-growing medical cannabis markets in the world.

According to a study on the German health insurance market, 500 German patients requested medical cannabis in January of 2017.

In December of the same year, the number of patients requesting reimbursements for cannabis prescriptions skyrocketed to 13,000.

What was the biggest factor that drove the huge spike?

German insurance companies started covering medical cannabis subscriptions in 2017 – and the number of patients surged.

Looking forward – this bullish trend is expected to accelerate.

Tens of thousands of new patients are expected to enroll in Germany’s medical cannabis program in 2018.

Longer term – I expect the success of Germany’s medical cannabis market to usher in recreational legalization. Continue reading "A New Entry Into Germany’s Cannabis Industry"

Cannabis Stocks Flashing Buy After Worst Week Of Year

Analysis originally distributed on November 23, 2016 By: Michael Vodicka of Cannabis Stock Trades

If anyone thought investing in weed stock was going to be easy, this week was a reality check.

Cannabis stocks collided with two obstacles in the last week.

The first, four of the largest Canadian medical marijuana stocks were temporarily halted because of high levels of volatility.

For example, last Wednesday Canopy Growth Corp (CGC) was surging into a new all-time high above $17 – up more than 20% on the day.

While that was great news for shareholders, it set off the Toronto Stock Exchanges (TSE) circuit breaker. Shares were temporarily halted so the exchange engines wouldn’t melt down like a hunk of warm cheese.

Aphria (APH), the second-largest Canadian medical marijuana company, and Organigram (OGI), the third-largest Canadian medical marijuana company, were also halted last week after hitting new all-time highs.

The trading halts only lasted a few minutes at a time.

However, damage was inflicted. Continue reading "Cannabis Stocks Flashing Buy After Worst Week Of Year"