Marijuana Index Makes Slight Gains On Cannabis Stock Recovery As Investors Look Past Tax Reform
Cannabis stocks recovered slightly on Wednesday as The North American Marijuana Index made minimal gains following a slow day on Tuesday. The long-awaited tax reform bill finally passed in the United States Congress. It was the most extensive overhaul of the tax system in 30 years, although the markets appeared forward-looking as Wall Street fell and Canada saw minimal gains. Experts believe any benefits from the bill have already factored into the market, hence the dip. Still, cannabis investors are looking forward to the new year as California and Canada await the repeal of marijuana prohibition, opening up two of the largest legal cannabis markets in the world. The North American Marijuana Index gained 1.39 percent on Wednesday to close at 197.71.
United States Index
A small stumbling block forced a revote on the tax bill this morning in the House of Representatives, but the law finally passed and awaits the President’s signature. Meanwhile, Wall Street had a lackluster day as investors begin to look beyond corporate tax breaks to see what the bill has wrought. The Dow Jones Industrial Average fell .11 percent on Wednesday, and the NASDAQ and S&P 500 fared about as poorly, falling .04 percent and .08 percent respectively. Again, investors hope the New Year will bring new gains, as California is set to become the largest adult-use recreational market in the country - assuming U.S. Attorney General Jeff Sessions stays out of the way. The United States Marijuana Index rebounded on Wednesday, gaining 2.61 percent to close the day at 67.98.
Canadian cannabis investors are equally as excited about legalization, although the wait is a bit longer up north as Canada’s market opens in July 2018. Meanwhile, with tax reform out of the way, Canadian cannabis stocks had little to hold their attention as the holiday season began in earnest. The S&P/TSX saw a minimal gain on Wednesday, rising .16 percent to close at 16,159.67, and the S&P/TSX Venture fared even worse, gaining just .09 percent to close the day at 805.69. Mergers and acquisitions rule the day as the Canadian cannabis industry finds its legs and begins to mature ahead of prohibition repeal, with Aurora Cannabis leading the way on that front. The Canadian Marijuana Index gained .34 percent on Wednesday to close the day at 527.04.
Winners and Losers
Leading the way on the Index on Wednesday was Marapharm Ventures Inc. (MDM:CNX). The company gained a whopping 20.83 percent to close out the day at 0.870 per share. Cannabis Wheaton Income Corp. (CBW:CA) saw share prices rise 14.29 percent on higher than average trading volume, ending the trading day at 1.200 per share. Rounding out the winner’s circle on Wednesday was CV Sciences Inc. (CVSI), who recently presented at the 25th Annual World Congress on Anti-Aging Medicine. The company gained 12.94 percent on higher than average trading volume to close out the day at 0.384 per share.
On the other end of the Index, Aurora Cannabis’ favorite new pincushion Newstrike Resources Ltd. (HIP:CA) fell 5.56 percent on lower than average trading volume. Share prices now sit at .510 per unit. The newest entrant into the cryptocurrency market, MCIG Inc. (MCIG) fell 5.49 percent on lower than the average trading volume on Wednesday. Their closing price was 0.222 per share. Finally, Abcann Global Corporation (ABCN:CA) fell in trading on Wednesday. The company dropped 5.37 percent to close the day at 1.410 per share.
Stocks to Watch (And Watch Out For)
Friday Night Inc. (CSE:TGIF) announced their first-quarter financial results for the period ending October 31 - and the results were fantastic. The company gained 29.87 percent today to close out at 1.00 per share.
For more on The Marijuana Index, including methodology, go to marijuanaindex.com.