These Four States Could Fuel a Boom on November 6
Marijuana stocks took quite a hit over the last few days.
On a “sell the news” reaction following Canada’s legalization, popular stocks plummeted:
- Canopy Growth (CGC) fell from nearly $60 to $38
- Tilray Inc. (TLRY) dropped from $160 to $108
- OrganiGram Holdings (OGRMF) fell from $6.75 to $3.75
- Aphria Inc. (APHQF) fell from $16 to $11
- Aurora Cannabis (ACB) dropped from $12.50 to $7
But don’t count them out just yet.
For one, Americans still overwhelmingly support legalization in the U.S. In fact, since 1970, the approval rating jumped from 12% to 66%.
We may see another boost in just days, as four states vote on legalizing marijuana within their borders. If all four states vote for legalization, marijuana would be legal for recreational use in 11 states and the District of Columbia. It would also be legal for medicinal use in 33 states.
Marijuana on the Michigan Ballot
The state may already have a strong medical marijuana industry, but voters will decide on its recreational use in just days. According to a Detroit Free Press survey, 55% of voters want to see it approval. Meanwhile 41% oppose it.
Marijuana on the North Dakota Ballot
Years after approving its medicinal use with 64% approval, the state may see an uphill battle for recreational sales. However, according to the Grand Forks Herald, 51% of voters do favor its legalization. At the moment, 36% oppose. Another 13% are undecided.
Marijuana on the Utah Ballot
On November 6, 2018, Utah – which has some of the strictest alcohol rules in the country – will vote on a medical marijuana initiative. However, polling says it may be an uphill battle. Less than 50% of those polled approve of its medical legalization.
Marijuana on the Missouri Ballot
In Missouri, folks will vote on three measures, including:
Amendment 2 (Medical Marijuana and Veteran Healthcare Services Initiative)
This would legalize medicinal marijuana, and tax sales at 4%. Collected revenue would be spent on healthcare services for veterans, an allow patients to grow at home.
Amendment 3 (Medical Marijuana and Biomedical Research and Drug Development Institute Initiative) would legalize medicinal marijuana, tax sales at 15%, and create a marijuana research center in Missouri.
Proposition C (Medical Marijuana and Veterans Healthcare Services, Education, Drug Treatment, and Public Safety Initiative) would legalize medicinal marijuana, tax marijuana sales at 2%, and spend revenue on veterans, drug treatment, education and public safety.
But wait, there’s more…
New York could be next. In September 2018, the Cuomo Administration held public listening sessions on the legalization of marijuana. And, according to a Quinnipiac University survey from earlier this year showed 63-percent of New Yorkers support “allowing adults to legally possess small amounts of marijuana for personal use,” the highest level of support this poll has ever found, as reported by WGRZ.com.
And while New Jersey will miss the November 2018 deadline to get marijuana on the ballot, but they may be nearing legalization, too. A draft proposal addresses taxes, regulations and eligibility to operate a marijuana business. The latest bill would impose a 12 percent tax on marijuana sales, with cities and towns allowed to add a 2% tax of their own, notes the Chicago Sun Times.
As marijuana legalization just begins to gain national acceptance, we may see quite a boom for the industry. In fact, it may just create the second Gold Rush.
Stay tuned for more.
Pot Stocks of Interest: Aurora Cannabis (NYSE:ACB)
Aurora produces and distributes medical marijuana products in Canada. The company’s products consist of dried cannabis and cannabis oil. It also operates as a pharmaceutical wholesaler and narcotics dealer of medical marijuana in Germany and the European Union; and produces and sells proprietary systems for the indoor cultivation of cannabis, organic microgreens, vegetables, and herbs. It’s also a licensed producer of medical marijuana pursuant to the Marijuana for Medical Purposes Regulations and operates a 55,200 square foot expandable state-of-the-art production facility in Alberta, Canada.
According to company, “Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations. The Company operates a 55,200 square foot, state-of-the-art facility in Mountain View County, Alberta, is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third a 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island.”
The oversold stock was just added to the NYSE under the ticker ACB.
The move to the NYSE opens the door for investors who once avoided buying because they didn’t want to buy on the OTCBB. The company follows Cronos Group (CRON) and Canopy Growth (CGC) listings on major exchanges.
These certainly won’t be the last.