Cannabis stock report: Marijuana stocks plummet as House GOP attempts to derail farm bill
The North American Marijuana Index fell on Tuesday, as cannabis stocks plummeted despite news that Congress was close to finishing the new farm bill which is poised to include provisions to legalize hemp. However, even that news was touch-and-go as day turned into night, with Senate Agriculture Committee ranking member Debbie Stabenow of Michigan telling The Fence Post that House Republicans and the White House could derail the whole thing with demands to change forestry policy included in the bill.
Saying there’s “no white smoke yet,” Stabenow hesitated to portray confidence in the bill’s final passage. "It would be very unfortunate if (the demands for forestry policy changes) brought down the farm bill … unfortunate for farmers and ranchers," she told the Fence Post.
Passing a bipartisan #FarmBill is important to WA families, from helping put food on the table, to supporting our farmers and fruit growers, to promoting conservation. The Trump Administration’s attempt to use the bill to push harmful forestry policy is misleading and shameful.
— Senator Patty Murray (@PattyMurray) November 27, 2018
Expanding on her statement, Stabenow told a larger group of reporters that she along with Senate colleagues would like to move forward with the bill in its current form.
“Last-minute provisions can be the death of any complicated bill. We are poised to have an agreement,” Stabenow told reporters on Tuesday. “Sen. Roberts and I would be happy to proceed without it (the forestry provisions) … we are very close to wrapping up right now."
The Index fell 5.39 points or 2.17 percent to close out the day at 242.75. Meanwhile, the United States Marijuana Index fell 2.67 points to close out the day at 104.13, while the Canadian Index dropped 1.38 percent to end Tuesday at 525.75.
The benchmark Horizons Marijuana Life Sciences ETF closed out the day down CA$0.11 ($0.083), or 0.63 percent to finish out Tuesday at CA$17.22 ($12.95). Meanwhile, in the U.S., the ETFMG Alternative Harvest ETF (MJ) fell $0.36, or 1.24 percent, to end the day at $28.65.
Tariff talk continues in Washington
Stocks closed higher on Wall Street on Tuesday even as President Donald Trump shook investors with an interview in the Wall Street Journal stating that he would bump up tariffs on Chinese goods to 25 percent. According to Yahoo Finance, Trump said that he would impose tariffs on an additional $267 billion worth of Chinese imports should continued trade talks with resident Xi Jinping prove unsuccessful, with the new tariffs set to include Apple devices.
Meanwhile, Federal Reserve Vice Chairman Richard Clarida gave remarks on Tuesday that put a positive spin on the U.S. economy. He also stated that future rate hikes from the central bank should be “gradual.”
“How close is a matter of judgment, and there is a range of views on the FOMC,” Clarida said in a prepared speech. The process of learning about the neutral fed funds rate and natural rate of unemployment “as new data arrive supports the case for gradual policy normalization, as it will allow the Fed to accumulate more information from the data about the ultimate destination for the policy rate and the unemployment rate at a time when inflation is close to our 2 [percent] objective.”
The S&P 500 rose 0.33 percent or 8.75 points on Tuesday, and the Dow Jones Industrial Average moved up 0.44 percent or 108.49 points. Finally, the Nasdaq barely ended up in the black, gaining 0.01 percent, or 0.85 points.
Green Thumb Industries grows revenues almost 350 percent
Green Thumb Industries Inc. (CSE:GTII) (OTCQX:GTBIF) announced their third-quarter revenues for the period ending September 30 and they were nothing short of spectacular. The company had a cash positive quarter with an EBITDA of $3.4 million and 344 percent year-over-year growth — all the more impressive considering the fact that only 13 of 60-plus dispensaries are currently built-out.
Here’s a behind-the-scenes look at our high #terpene live resin proudly made in Danville, PA. #GTIGrowsWe're hiring lab technicians in IL, FL, MA, MD, and PA: https://t.co/1Y4CYZPyHr pic.twitter.com/S7GX05Malf
— Green Thumb Industries (GTI) (@GTIGrows) November 15, 2018
“This was another quarter of solid financial and operational results as we build our foundation for the future,” said GTI Founder and Chief Executive Officer Ben Kovler in a statement. “We have been focused on expanding wholesale capacity to meet increasing demand, opening new RISE stores and are unwavering in our diligent effort building a world-class team. To support our strong retail pipeline, we added experts to the team in retail operations, real estate, design and construction, and marketing and communications from retail giants such as Nordstrom, Starbucks, Home Depot, Whole Foods, Apple and Nike.”
Who's up and who's down
Newstrike Brands Ltd. (HIP:CA) closed up CA$0.03 ($0.023) to end the day at CA$0.44 ($0.33), a 7.32 percent gain… Innovative Industrial Properties, Inc. (IIPR) closed up $3.42 to finish the day at $50.17, a 7.32 percent gain… Charlotte's Web Holdings, Inc. (CWEB.CN) closed up CA$0.52 ($0.39) to end the day at CA$15.49 ($11.65), an increase of 3.47.
Namaste Technologies Inc. (N.V) fell CA$0.13 ($0.098) per share to end the day at CA$1.24 ($0.93), a decline of 9.49 percent… Isodiol International Inc. (ISOL.CN) fell CA$0.14 ($0.11) per share, ending the day at CA$1.36 ($1.02), a decline of 9.33 percent… Cannex Capital Holdings Inc. (CNNX.CN) fell CA$0.07 ($0.053) per share, finishing out Tuesday at CA$0.85 ($0.64), a decline of 7.61 percent.
Around the Pot Network
Rick Schettino has the week’s news, including a plan from House Democrats to push federal cannabis reform… New Jersey is now one step closer to legalizing cannabis with a new bill that passed through committee… Emblem Corp. had a fantastic third quarter… So did Trulieve, but no one cared… and those teens sure do love their pot.
Lexaria Bioscience CEO, Chris Bunka at New Green Frontier Investor Conference
The inaugural New Green Frontier cannabis investor conference featured the CEO of Lexaria Bioscience Corp (CSE:LXX), Chris Bunka. Discussing investment opportunities, speakers at the conference took a deep dive into the cannabis industry, and in Bunka’s case, medical cannabis. Have a look at his remarks below: