Cannabis is enjoying a surge in popularity in the US, and not just among those shut away by the global pandemic, Wall Street Cannabis stocks are witnessing a comeback as companies and investors alike prepare for the promising year ahead. They anticipate a green wave powered by pandemic fueled demand, new legislation and democratic enthusiasm which will breath new life into the big cannabis firms.
Joe Biden is thinking green. The Democrat has landed in the White House with several packages of measures under his arm, ranging from favoring renewables on Wall Street to legalizing cannabis on a national scale. The latter was already approved in the form of a bill by the US House of Representatives last December 4, and a Senate with a surprising Democratic majority is about to give it the definitive green light in 2021.
The idea is to join the green tide that some states have already started by approving the therapeutic and recreational use of cannabis throughout the country. Are you ready for it to happen? Need to stay up to date with cannabis news? Download our Hemp.IM companion app to stay in the loop!
“The war on drugs has been a war particularly against people of color,” laments Senate Majority Leader Chuck Schumer. “Ending federal cannabis prohibition is necessary to right the wrongs of a failed conflict and put decades of harm behind us,” he continues. “As states legalize cannabis, we must help all those people on whom a target was unfairly put on their backs,” his words are both a strong condemnation of failed prohibition, and a hopeful sign of the green wave to come. But that wave is likely to break on wall street before Capitol Hill.
The Democratic endorsement is yet another catalyst for cannabis in 2021. The cannabis sector’s shares (on or off Wall Street) have just bounced back with particular vigor in 2020, buoyed by the profitability they began to show in the summer. Biden’s arrival in the oval office “gives investors the feeling that the institutions are going to throw even more money at the industry,” Tim Seymour of Seymour Asset Management told CNBC.
Seymour knows what he is talking about to, and his Amplify Seymour Cannabis ETF, composed of 25 stocks in the sector, posted new all-time highs Wednesday. New York is another catalyst for marijuana. Its governor, Andrew Cuomo, is pushing to green-light its recreational use. “(The city) is kind of a tipping point for the whole East Coast to follow,” Seymour notes.
Another potential upward ramp for the industry is the possibility that in the coming months, cannabis companies will be allowed to list directly on domestic exchange. A move which favors cannabis’ integration on Wall Street, which will pave the way for more IPOs and more money coming in from bankers and institutional players.
In the coming months, there is also speculation about mergers and buyouts in the sector, because “the big companies will want to get even bigger,” Seymour argues. “Investors should be excited about them, it’s not too late yet, in fact, there is still in time,” he concludes.
And then there is Covid-19. Strict confinement has pushed many people into hobbies, and not just gardening. Scotts Miracle-Gro, a U.S. multinational based in Ohio, acknowledges that the pandemic has had this effect on people. Hawthorne Gardening, its cannabis subsidiary, has also seen a surge in recent months: “The virus has made people smoke a lot more weed, that’s for sure.
__
(Featured image by Free-photos via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in BolsaMania, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Ontario is investing $31 million over the next three years to enhance efforts against illegal…
Frankfurt and Hanover are launching five-year pilot projects for legal, regulated cannabis sales to adults,…
Italy's Regional Administrative Court suspended the Health Ministry's decree labeling CBD as a narcotic, pending…
This November, five U.S. states will vote on measures related to legalizing recreational or medical…
The European Commission has launched an investigation into Italy after its recent proposal to ban…
A new study has found that prolonged use of high-THC cannabis leaves a unique mark…