Marijuana News Today
A new survey in the marijuana news today confirms something that we already know: marijuana is hugely popular in the United States, despite federal laws making the market one of the more restrictive ones around.
The survey, published in the Annals of Internal Medicine, revealed that one in seven Americans had used marijuana in 2017. That equates to about 50 million Americans having partaken of the green herb last year. And of the 16,280 U.S. adults polled, 8.7% claimed to have used the drug within the last 30 days. (Source: “One in seven U.S. adults used marijuana in 2017,” Reuters, August 27, 2018.)
More people were likely to admit having used marijuana if they lived in a state where it was legal, averaging 20%, versus about 12% in states where the drug was completely illegal.
Legalization also spurred the use of edibles and vaping, whereas in states where the drug was illegal, people tended to stick to smoking.
Overall, 12.9% reported smoking marijuana, six percent said they had consumed edibles, 4.7% reported vaping, 1.9% said they had used concentrates, and 0.8% reported using topical versions of cannabis.
The survey confirms that the U.S. is very much a pro-weed country. One in seven is a massive chunk of the nation, representing a very strong consumer base for cannabis.
What This Means for Marijuana Stocks Long-Term
What the U.S. is waiting for in regard to marijuana legalization is for the critical mass threshold to be passed. By this I mean the point at which so many Americans are pro-marijuana legalization that the federal government is forced to change to its laws or risk losing votes in the next election cycle.
While we’re not quite at that threshold yet, we are seeing promising steps. Study after study and poll after poll continue to show that the majority of the U.S. population is ready for marijuana to be legalized.
Marijuana companies, naturally, are chomping at the bit for U.S. marijuana legalization.
While Canadian marijuana legalization is very exciting in its own right, ultimately it’s the big markets like the U.S., Germany, and the U.K. that will help pot stocks reach their true potential.
We are still years away from these countries fully legalizing marijuana, but that doesn’t change the fact that cannabis legalization is on the horizon.
The marijuana news today on the stock market is, for the first time in weeks, not quite as positive as the political side.
We’re seeing a bit of a pullback across the marijuana industry following the massive jump in value we have experienced since the Constellation Brands, Inc. (NYSE:STZ) multi-billion-dollar investment went through.
Few stocks have seen growth over that time period like Tilray Inc (NASDAQ:TLRY). Tilray stock is up 44% since the beginning of last week, and yesterday skyrocketed by about 20%.
Today, however, TLRY stock has received a bit of haircut, down about three percent in early-morning trading today.
But while a pullback was inevitable, considering just how high marijuana stocks have been soaring, the future is still quite bright for Tilray Inc. The company recently announced a supply agreement with the Canadian province of Nova Scotia, which Tilray will fulfill via its subsidiary High Park Holdings Ltd.
“We’re thrilled High Park will have the opportunity to supply the province of Nova Scotia with a safe, secure and reliable source of adult-use cannabis products,” said Adine Fabiani-Carter, High Park’s Chief Marketing Officer. (Source: “Tilray Selected by Nova Scotia Liquor Corporation to Supply a Variety of Adult-Use Cannabis Brands and Products,” BusinessWire, August 27, 2018.)
This comes off the back of a supply agreement signed with Ontario, Canada’s largest province and most lucrative market.
Aurora Cannabis Stock
Tilray hasn’t been alone in signing major supply agreements, however. Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) was also among the marijuana companies chosen to supply Ontario with marijuana products.
Aurora Cannabis stock has been performing very well over the past weeks—not as well as TLRY stock, mind you, but still bringing in very respectable numbers.
ACB stock jumped by about 18% over the past week, even as it finds itself down about three percent in early-morning trading today.
The company has seen strong growth over the course of the past week, but not nearly as strong as some of its major rivals like Canopy Growth Corp (NYSE:CGC) and Cronos Group Inc (NASDAQ:CRON), which I believe to be a function of the company not being on the Nasdaq or New York Stock Exchange.
TLRY & ACBFF Stock Performances
Below are the recent performances of the stocks of Tilray Inc (black line) and Aurora Cannabis Inc (blue line).
Chart courtesy of StockCharts.com
Every day brings us one step closer to the eventual full U.S. marijuana legalization. The marijuana news today only further cements that belief.
In the marijuana stock market, we saw a bit of a pullback to start Tuesday, but it’s far too early to say that the bull run is over. While 50% gains in a week are probably unlikely moving forward, we’ll have to wait and see if another correction is on its way to compensate for that massive growth.
Check out the original article here.
Author: Stephen Karmazyn, BA