Mexico Ready To Unleash A $2 Billion Market

The United States is dominating the cannabis headlines because four states are set to vote on legalization on November 3 with the U.S. presidential election.

Cannabis investors could have easily missed a huge investment opportunity that is rapidly developing just south of the U.S. border.

Mexico is on the fast track to legalize recreational cannabis – most likely by the end of the year. Here are some more details from marijuanamoment.com.

The Mexican Senate will likely vote on a bill to legalize marijuana within the next two weeks, the chamber’s majority leader recently said.

It’s not clear if the legislation will go through the committee process or straight to the floor given that tight timeline. Zara Snapp, a legalization activist with the Instituto RIA and the coalition #RegulacionPorLaPaz, told Marijuana Moment that advocates have similarly heard from senators that the plan is to quickly pass the proposal and they’re “hopeful” that’s the case.

If the Senate passes the legal cannabis bill it will still have to go before the other house of the nation’s Congress, the Chamber of Deputies. President Andrés Manuel López Obrador said in August that marijuana reform legislation will advance in the new session. The bill was approved by several committees earlier this year, but the COVID-19 outbreak derailed negotiations.

Legalization in Mexico is important for two reasons. Continue reading "Mexico Ready To Unleash A $2 Billion Market"

What Would a Biden Victory Mean For Cannabis?

Cannabis investors should be pleased with the results of the first presidential debate.

According to RealClear Politics, a UK-based website that lets non-U.S. residents bet on the outcome of the U.S. presidential election, Joe Biden had a 55% chance of victory before the debate. But after the debate, Biden’s probability spiked to almost 60%.

This little spike on the chart has important implications for the U.S. cannabis industry and cannabis investors.

Biden

Joe Biden isn’t the most cannabis-friendly Democrat. However, a Biden presidency would likely be a big step forward to the U.S. cannabis industry.

Here’s why. Continue reading "What Would a Biden Victory Mean For Cannabis?"

The North America Cannabis Industry Has A New Champion

The North America cannabis industry has a new champion. This well-known sector leader just completed an $875 million acquisition that puts it into a position to dominate the U.S. cannabis market.

Even though shares have been rallying for the last few weeks, I see plenty of upside ahead.

Curaleaf Holdings (CURLF) is an early leader in the high-growth U.S. cannabis industry with a market cap of $4.5 billion and operations in 18 states.

However, after one of the largest acquisitions in the history of the U.S. cannabis industry, Curaleaf has definitively taken the crown as the largest cannabis company in North America.

On July 23, Curaleaf completed its $875 million acquisition of Grass Roots, a fellow Chicago-based industry leader that operates in 12 states, owns 52 dispensaries, 14 cultivation sites, and 14 processing sites.

The new combined entity will become the largest cannabis company in the world by revenue. Here are some more details from the press release. Continue reading "The North America Cannabis Industry Has A New Champion"

Will Cannabis Stocks Soar Again?

The most important time of the quarter has arrived for cannabis stocks.

Earnings season is when companies reveal sales and earnings results for the previous quarter – and just as important, the company provides guidance on what investors should expect for the following quarter.

Quarterly earnings that beat expectations have a documented history of helping shares outperform the broader stock market in the following weeks and months.

On Wall Street, this pattern is known as the post-earnings announcement drift (PEAD).

Post-earnings announcement drift is the tendency for a stock’s cumulative abnormal returns to drift in the direction of an earnings surprise for several weeks (or even several months) following an earnings announcement.

Here are some more details from Wikipedia.

Once a firm’s current earnings become known, the information content should be quickly digested by investors and incorporated into the efficient market price. However, it has long been known that this is not exactly what happens.

For firms that report good news in quarterly earnings, their abnormal security returns tend to drift upwards for at least 60 days following their earnings announcement. Similarly, firms that report bad news in earnings tend to have their abnormal security returns drift downwards for a similar period. This phenomenon is called post-announcement drift.

cannabis stocks

The power and reliability of the PEAD was on full display in the cannabis sector last quarter. An elite group of early cannabis leaders delivered impressive quarterly results that have been driving shares higher for the last two months. Continue reading "Will Cannabis Stocks Soar Again?"

Israel's Bid To Legalize Recreational Cannabis

Israel just took an important step to make it the next country to legalize recreational cannabis. If this happens, two young cannabis stocks could surge.

A bill to legalize recreational cannabis in Israel passed a critical test after being approved by the Ministerial Committee for Legislation.

According to The Times of Israel, this bill would decriminalize possession (up to 50 grams). It would also legalize individual possession of up to 15 grams among opening up other restrictions.

Here are some more details from The Times of Israel.

If the bill becomes law, selling and purchasing marijuana for personal use will be legal for those above 21 and authorized shops will be allowed to sell cannabis product, through growing marijuana at home will still be illegal. The legislation also outlined medical cannabis reform.

On Wednesday, the legislation is expected to be brought before the Knesset for the first of three votes it must clear in order to become a law.

The bill still has to jump a few hurdles, but the outlook is promising. Prime Minister Benjamin Netanyahu has found the leadership support needed for full legalization and has vowed to “resolve the issue of decriminalization and legalization.”

If the bill is passed – it would pave the way for Israel’s medical and recreational industry to flourish. If legalization pushes through, these two stocks are in position to benefit. Continue reading "Israel's Bid To Legalize Recreational Cannabis"