With tax reform in the rearview mirror, cannabis stocks began looking to the future as The North American Marijuana Index made significant gains on Thursday. Wall Street rebounded as well, with investors upbeat about an economy that grew at its fastest pace in over two years. Hidden in all the corporate tax hullabaloo, however, was a report showing a jump in the number of Americans filing for unemployment benefits. As legalization looms for California in less than two-weeks, investors may worry that consumers with less discretionary funds will stick to traditional vices like alcohol, rather than pay exorbitant taxes on cannabis. Still, The North American Marijuana Index gained 4.37 percent on Thursday, closing the day at 206.37.
United States Index
As Congress celebrated the passage of its donor-backed tax reform bill and kicked the can of a government shutdown towards January, cannabis stocks in the U.S. had something to smile about on Thursday. Wall Street rebounded from a poor showing on Wednesday, with the Dow Jones Industrial Average, the NASDAQ, and the S&P 500 all making gains. Investors preparing for the holidays would be wise to note the small inconsistencies in the market and the economy as a whole, such as Thursday’s backward-trending jobs report. The industry is going to rely on middle-class consumers to keep itself afloat. The United States Marijuana Index rose .74 percent on Thursday to close at 68.49.
Canada had a mixed day on the markets even as the Canadian Marijuana Index made significant gains on Thursday. Commodity prices were down, but healthcare and financial stocks were up north of the border to balance out the markets. Cannabis stocks have a brighter future ahead of them in Canada, although Prime Minister Justin Trudeau through a bit of uncertainty into the mix when he announced that July 1 was not a hard deadline for legalization in the country. Still, he guaranteed prohibition repeal by the summer, putting cannabis investors in Canada in a much better position than their brethren down south who still have to grapple with federal law and an Attorney General hell-bent on laying it down. The Canadian Marijuana Index gained 5.77 percent on Thursday to close at 557.44.
Winners and Losers
Cannabis Wheaton Income Corp. (CBW:CA) led all companies on the Index on Thursday, with shares gaining 29.17 percent on higher than average trading volume. The company ended the day with prices at 1.550 per share. Also doing well on Thursday was Namaste Technologies Inc. (N:CNX) who saw share prices rise 20.74 percent on higher than average trading volume. Their final share price was 2.270 per unit. Finally, Surna Inc. (SRNA) who recently announced a 1.8 million dollar equity offering saw significant gains on Thursday, with share prices rising 15.65 percent to close the day at .200 per share.
Looking at the market from the bottom-up was Cannabis Sativa Inc. (CBDS), whose share prices fell 18.35 percent on higher than average trading volume. The company closed the day at 4.450 per share. After last week’s announcement about their Chalice Farms Dispensary, Golden Leaf Holdings Ltd. (GLH:CNX) had another down day on the market, with share prices falling 5.36 percent. They ended the trading day at .265 per share. Innovative Industrial Properties Inc. (IIPR) also saw their price drop, losing 3.05 percent on higher than average trading volume. The company closed the day at 24.140 per share.
Stocks to Watch (And Watch Out For)
Future Farm Technologies Inc. (CSE:FFT) made a deal on Thursday to double their hemp farm acreage. Share prices were up 31.15 percent to close the day .80 per unit. Cannabis Science, Inc. (OTC Pink:CBIS) announced on Wednesday a plan to open two dispensaries in California, just in time for the new year. The company saw prices gain 11.03 percent on higher than average trading volume to close the day at .0584 per unit.
For more on The Marijuana Index, including methodology, go to marijuanaindex.com.