WeedLife News Network

Will Pot Stocks Continue Recent Downtrends?

Here we are, in the month of October, and marijuana stocks are showing downward pressure because of COVID again. With recent concerns over president Donald Trump contracting the Coronavirus the market is feeling the effect. On top of that, you have a miss in September job growth that suggests the recovery is slowing up. Once again, the reality and graveness of this pandemic is brought to the forefront of market stability.

When Randy Strode and (partner at the time) Gerry Abner bought a property off Kelly Park Road in Apopka, FL, in 1984, it marked the humble beginnings of Agri-Starts, Inc. The little trailer lab and Quonset hoop houses only totaled about 6,500 square feet. But since that time, through continued diversification and innovation, the nursery is now home to 210,000 square feet of greenhouses — and in need of more space. Ty Strode, the President of Agri-Starts, took over day-to-day management of operations from his father at the beginning of this year.

The long-awaited launch of Maine’s recreational cannabis market will likely fall short of expectations, with some shops unsure if they will even have marijuana to sell, much less the THC-infused food and drinks readily available on the state’s existing medical market.

One state-approved shop said it may skip opening day altogether, its owners unsure whether they will have any products to sell Friday, the state’s first official day of adult-use sales. Retailers blame a licensing backlog for the expected shortages. Regulators agree, but say that’s what happens when you try to launch a new market during a global pandemic.

The legal cannabis industry continued to make inroads against its illicit counterparts, as one-quarter of all sales took place among regulated players in the first quarter of the year, according to new data from the Ontario Cannabis Store.

The provincial pot distributor's quarterly review showed that the province controlled a 25.1-per-cent share of the cannabis market in the fiscal first quarter of 2020, a slight uptick from the 24.7 per cent share observed in the previous quarter. The number lagged behind the national share for the legal market, according to OCS and Statistics Canada calculations.  

Can These Pot Stocks Make Big Headway Next Year?

With the green light given for a cannabis testing laboratory to begin operations, Missouri’s medical marijuana program supply chain is now complete and will soon be serving patients. Last week’s approval of EKG Labs in St. Louis comes nearly two years after voters legalized the medicinal use of cannabis with the passage of a constitutional amendment in November 2018.

Canopy Growth Corp., the cannabis company that attracted Corona beer producer Constellation Brands Inc. as an investor, is moving to bring cannabis beverages to the U.S. in 2021.

The drinks will contain THC, the psychoactive compound found in marijuana, in dosage amounts designed to keep people buzzed and social in a similar way to beer, cocktails or wine.

“Just as hard seltzer disrupted beer by providing a lighter, low calorie alternative, we believe cannabis beverages will be an attractive option for what have traditionally been alcohol-driven occasions and mood states,” said David Klein, Canopy’s chief executive officer, in an email exchange with Bloomberg News.

With cannabis prohibition on the decline and medical marijuana now legal in 33 states, it’s a great time for innovators to create new and exciting technology to improve how people cultivate and consume cannabis. 

However, it hasn’t always been this way. 

Bryan Buckley, who is the CEO and Founder of Helmand Valley Growers Company, explained the struggles of funding medical cannabis research during the early days of legalization on Episode 42 of the Cannabis Tech Talks podcast. 

“We’re playing a game as we’re still making up the rules, and we’re very comfortable being uncomfortable,” said Buckley. “When you really believe in something…you’ll figure out a way to make it work.” 

A lot of innovators could probably agree with Buckley’s statement. 

Voters have some big decisions to make when they cast their ballots by Nov. 3. A Joe Biden presidential victory could lead to the decriminalization of marijuana at the federal level, which would certainly be a big step forward for the industry though it would stop short of full federal legalization. In addition, Arizona, New Jersey, South Dakota, and Montana could be among the next states to legalize marijuana for recreational use as their voters decide whether to allow adult-use pot.

A new bill has been introduced to Congress by a team of Democratic senators who think it’s unfair that cannabis businesses in legal states are excluded from federal aid while other businesses in the state are able to get a leg up with government-funded help.

Six months after medical marijuana became legal for purchase inside Utah for the first time, the program has already surpassed enrollment projections.

But high demand has also led to shortages in both product and providers interested in recommending medical marijuana to patients.

“It’s been going. It’s been going well, as with all new programs and people starting and really pushing to get up and going like they did early on — and now (producers) are starting to find their traction to be able to keep moving forward,” said Cody James, manager of the Utah Department of Agriculture’s Industrial Hemp and Medical Cannabis Program.

What is the Cannabis Industry Up To This Month?

Utah medical cannabis patients have gotten used to a cash-only system, as many banks and credit card companies still refuse to work with cannabis businesses. Now, in light of the hassle and potential theft risk that causes, as well as sanitation risks due to COVID, a new app that allows for cashless transactions is being rolled out. 

While most of Washington, D.C. is distracted by the Supreme Court drama, a buzz is building around one particularly green issue — namely whether the U.S. House of Representatives could be set to pass a bill to legalize cannabis as early as this month.

The Hawai‘i State Department of Health issued a formal notice to proceed to Hawaiian Ethos LLC on the island of Hawai‘i and Manoa Botanicals LLC, dba Noa Botanicals on O‘ahu, after both passed their final onsite inspections for their third retail facilities.

Hawaiian Ethos’ new retail location in Hilo at 578 Kanoelehua Avenue expects to begin sales on Saturday, Sept. 26, 2020. Noa Botanicals’ new retail location in ʻAiea at 98-302 Kamehameha Highway expects to open today.

With cannabis prohibition on the decline and medical marijuana now legal in 33 states, it’s a great time for innovators to create new and exciting technology to improve how people cultivate and consume cannabis. 

However, it hasn’t always been this way. 

Can These 3 Pot Stocks to Watch Continue to Outperform the Market?

Despite the pandemic, cannabis sales in Illinois continue to increase. But it’s not just in-state sales. Sales to out-of-state consumers in Illinois has nearly doubled since January.

Of the nearly $64 million in total adult-use cannabis sales in Illinois for August, $17.2 million was in “out-of-state resident sales.” That’s nearly double the $8.6 million in out-of-state sales back in January.

Pam Althoff, executive director of cannabis business group CannaBiz, said people are more anxious because of COVID-19.

“The knowledge is now common that Illinois did pass recreational cannabis use, is now out there and people are coming in and trying,” Althoff said.

Illinois has been making major headlines in the cannabis sector, as some groups cry out that the plans for granting new business licenses are not inclusive enough of minorities, and that the lottery system for choosing new businesses license holders is unfair. 

The West Coast wildfires may finally be slackening a bit thanks to kinder winds, merciful rain, and the heroic efforts of firefighters from Canada to Mexico, but the fight is far from over for cannabis growers whose crops went up in smoke and cannabis companies who will be struggling to stay afloat due to the diminished supply. The one-two punch of Covid-19 and the historic fires that ravaged (and in some cases are still ravaging) huge swaths of the western states may prove to be more than some businesses can withstand despite some industry leaders stepping up to lend a hand.