Marijuana Index Gains Continue As Cannabis Stocks Anticipate Prohibition Repeal
It was another big day of gains on Tuesday for the North American Marijuana Index, even as some investors anxiously wait for the Fed to announce an interest rate hike in the next 24 hours. Investors remain upbeat despite the widely expected bump in the benchmark rate, which analysts predict will be somewhere between 1.25 and 1.50 percent. In fact, confidence seems to grow as the new year approaches, with 2018 poised to be a big year for marijuana legalization. The Index was up 9.89 points on Tuesday, closing at 189.58 for a gain of 5.5 percent.
United States Marijuana Index
The United States Marijuana Index continued its climb on Tuesday following a mixed day of market trading. Closing at 6,862.32, the Nasdaq lost .19 percent, while the S&P 500 gained .15 percent. In spite of the conflicting signals from Wall Street, investors in U.S. cannabis stocks showed continued confidence in the sector as they eagerly await California’s legal marijuana market to commence in three weeks on January 1. It will immediately become the most extensive adult-use recreational market in the country. The United States Index closed at 65.53 on Tuesday, gaining 1.5 percent.
Canada’s Marijuana Index continued its rally as well on Tuesday, outpacing the S&P/TSX composite index, which closed the day up .07 percent, by a wide margin. After some volatility last week, Canadian cannabis stocks appear to have settled into a return to form early in the week. The new year promises even more significance north of the border, as all of Canada plans to repeal prohibition in July 2018. Cannabis-related companies continue to make landmark deals in advance of nationwide legalization. The Canadian Index gained 8.3 percent to close at 504.97 on Tuesday.
Winners and Losers
Monday’s stock to watch, Gridiron BioNutrients (OTC:MYYZ) saw lower than average trading volume but gained 17.82 percent. After recently announcing an endorsement deal with Pro Football Legends, the NFL’s alumni group, the company closed Tuesday at $1.19 per share. Namaste Technologies Inc. (CSE:N) (OTC:NXTTF) shares gained an impressive 12.97 percent on higher than the average trading volume on Tuesday. The company is now trading at $0.96 per share. Finally, cannabis’ newest billionaire Aphria Inc. (TSX:APH) (OTC:APHQF) saw shares jump 7.69 percent on Tuesday. The Shoppers Drug Mart partner is now trading at $11.769 per share.
It was a not so great day for 22nd Century Group, Inc. (NYSE:XXII), who saw their shares drop 6.74 percent on higher than average trading on Tuesday. They closed the trading day at $2.63 per share. CV Sciences, Inc. (OTC:CVSI) had higher than average trading volume Tuesday but lost 8.06 percent to close the day at $0.285 per share. Rounding out the bottom three Tuesday was Veritas Pharma Inc. (CSE:VRT) (OTC:VRTHF) who saw a 9.7 percent drop on higher than average trading volume. The company closed out Tuesday at $0.5418 per share.
Stocks to Watch (and Watch Out For)
CanniMed Therapeutics (TSX:CMED) plans to vote on their deal with Newstrike Resources on January 23, but only if Aurora Cannabis does not stand in their way - a big “if” at this point. The company saw prices rise .65 percent on lower than the average trading volume on Tuesday. They closed the day at $20.00 per share.
Medical Marijuana, Inc. (OTC:MJNA) claims that subsidiary Kannaway had the company’s most massive revenue month in history in November. Their price rose on Tuesday 1.87 percent on higher than average trading volume, closing the day at .109 per share.
For more on The Marijuana Index, including methodology, go to marijuanaindex.com.