Cannabis stocks went down in flames in recent weeks.
Poor earnings. A disappointing rollout of legal cannabis in Canada, severe cash crunches, and the vaping controversy haven’t helped much. Cannabis producers are burning through cash. Sales growth has so far been disappointing. Regulatory issues have been damaging, too.
However, even with all of that chaos, cannabis stocks are showing signs of life – again.
· Canopy Growth (CGC) is up 14% today
· Aurora Cannabis (ACB) is up nearly 11%
· Aphria (APHA) is up 6.5%
· OrganiGram Holdings (OGI) is up 8%
· Cronos Group (CRON) is up nearly 3%
All thanks to Congress.
The House Judiciary Committee plans to advance a bill that would lift the federal ban on cannabis known as the Marijuana Opportunity Reinvestment and Expungement Act (More Act).
“Our marijuana laws disproportionately harm individuals and communities of color, leading to convictions that damage job prospects, access to housing, and the ability to vote.” Committee Chairman Jerrold Nadler said, as quoted by MarketWatch.
“Recognizing this, many states have legalized marijuana. It’s now time for us to remove the criminal prohibitions against marijuana at the federal level,” he added.
Should it pass the House, it would then move on to the Senate.
Should it pass there, we could witness a substantial rally in cannabis stocks.