A PotNetwork Special Report
This article originally appeared on Grizzle, which PotNetwork is thrilled to be partnering with to bring you occasional features highlighting everything you need to know in the marijuana stock market. Scott Willis is the co-founder and head of research at Grizzle. Grizzle provides critical money analysis and insights for topics that matter to millennials. For more in-depth analysis of marijuana, crypto, and investing, check out grizzle.com.
On Tuesday Sanchez Cordero stated at a university seminar that Lopez Obrador has given her broad leeway to review Mexico’s drug policy. "On the subject of decriminalizing drugs, Andres Manuel told me and I quote: ‘Carte blanche, Whatever is necessary to restore peace in this country. Let’s open up the debate’."
Though there are no bargains when it comes to marijuana assets, Aphria looks to have received much more current value for the purchase price than the international deal struck by Canopy Growth two weeks ago.
In shocking news out of Deutschland, BfArM, the federal agency responsible for the management of the first tender cultivation bid, has issued a notice that it is ditching the first tender bid and will start from scratch.
This will likely push off the first medical cultivation of marijuana in Germany to 2020 at the earliest.
This additional tax means Manitoba could have a 41 percent tax rate on retail cannabis, much higher than the 20-35 percent tax rates in the US. If taxes are too high consumers will continue to buy from the black market, and legal sales will disappoint, similar to what is happening in California today.
twenty-two percent of UK citizens polled strongly support marijuana legalization while 29 percent somewhat support it. This compares to 19 percent who strongly oppose legalization and 16 percent who somewhat oppose it. Fifty-one percent for, 50 percent against or undecided points to a market moving in the right direction but not one that will see recreational legalization anytime soon.
Marijuana stocks sold off again week down eight percent as a group. Canadian stocks were off seven percent with large-cap names underperforming which happen very infrequently.
Even with all of the positive momentum on legalization, the stocks are down nine percent since the recent bottom in April. Retail investors are still waiting for a rebound in stocks leading up to legalization which could happen for a few weeks just before the October 17 legalization date, but it's looking like this is going to be a long summer of lackluster performance.
READ THE MARIJUANA EXPORT MIRAGE FOR AN IN-DEPTH REPORT ON THE STATE OF DEMAND FOR MEDICAL MARIJUANA OUTSIDE OF CANADA