Pot Stocks Rally After Sessions Steps Down

- November 8th, 2018

Pot stocks rallied as the biggest opponent of the industry exited the Trump administration. In his place, Matthew Whitaker will become the acting attorney general.

Following the Wednesday (November 7) resignation of Attorney General Jeff Sessions — the biggest voice against marijuana inside the Trump administration — pot stocks shot up.

Sessions, a vehement advocate against the cannabis industry, was sacked following increasing tension between himself and President Donald Trump.

In his place, Matthew Whitaker, chief of staff to the attorney general, will become the acting attorney general as indicated by a tweet from Trump.

Canopy Growth Corp up 2,200% since 2016!


Learn to profit from cannabis companies

Rush for stocks

Tilray (NASDAQ:TLRY) took in the biggest push thanks to Sessions’ removal. The cannabis licensed producer in Canada, which has no effective assets in the US at this moment, increased 19.53 percent and finished Wednesday’s trading session with a price per share of US$139.60.

On Thursday’s (November 8), trading session TLRY went back down 10.10 percent as of 11:55 a.m. EST.

Cannabis exchange-traded funds (ETF’s) such as the Horizons Marijuana Life Science Index ETF (TSX:HMMJ) and the Evolve Marijuana ETF (TSX:SEED) both made gains on Wednesday of 5.46 percent and 1 percent.

Early on Thursday, the two indexes balanced back with 3.56 and 2.48 percent loses for HMMJ and SEED. Respectively the two ETFs were valued at a price of C$21.41 and C$23.64.

Fellow Canadian producers on US exchanges Canopy Growth (NYSE:CGC,TSX:WEED), Aphria (NYSE:APHA,TSX:APHA), Aurora Cannabis (NYSE:ACB,TSX:ACB) and Cronos Group (NASDAQ:CRON,TSX:CRON) all took in gains on Wednesday.

Sessions fights cannabis industry

In January, a memorandum from Sessions removing an Obama-era protection for the cannabis market, sent pot stock to the red.

The industry-wide loss was seen no matter if companies had or didn’t have assets in the US market.

The move from Sessions, at the time, was feared for opening the possibility of a crackdown on the US cannabis industry.

Since then the US cannabis market has continued to thrive despite comments from Sessions such as “good people don’t smoke marijuana.”

Investor takeaway

With Sessions’ dismissal, the cannabis industry loses one of its biggest enemies in the US.

For cannabis investors, the move could signal the potential for a sweeping marijuana policy to arrive sooner rather than later for the US and fully open a gigantic market.

The momentum for these stocks shows an interest for a market and companies that at the time don’t have assets in the US cannabis market.

Pot stocks also saw gains thanks in part to the win of three states for legalized marijuana policy.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Canopy Growth Corp up 2,200% since 2016!


Learn to profit from cannabis companies

Get the latest Cannabis Investing stock information

Get the latest information about companies associated with Cannabis Investing Delivered directly to your inbox.

Cannabis Investing

Select All
Select None

By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time

2 responses to “Pot Stocks Rally After Sessions Steps Down

Leave a Reply

Your email address will not be published. Required fields are marked *