One of the most important elements of investing involves due diligence in researching and keeping up-to-date on stock news. Here are 5 notable items concerning weed stock news in the U.S.
1. Companies are finding ways to be part of the marijuana industry without actually touching the plant.
KuschCo Holdings (KSHB) deals in packaging and supplies. Based out of California, Kushco is expected to increase sales up to $150 million in 2019. They are currently seeing a new revenue increase of 240% year-over-year.
2. U.S. marijuana stock markets are finally looking more attractive than Canadian based companies.
For several years, most of Wall Street favored investing in marijuana stocks based in Canada. In 2018, recreational marijuana was legalized across the country opening doors for investors. According Compass Point Research and Trading, U.S. stocks have caught up. The report suggests that the U.S. will produce nearly 80% of legal cannabis sales across the globe.
3. The Denver-based company Akerna (KERN) saw a 224% jump after its recent debut on the Nasdaq.
Akerna provides compliance software to the marijuana industry and regulators. Jessica Billingsley, Akerna’s CEO, notes an aggressive acquisition strategy as one of the driving forces behind the company’s success. This success is not necessarily reason enough to go all in with the company as there is a lot of competition on the rise.
4. More states are legalizing some form of marijuana.
Illinois passed the House Bill 1438, a bill that will legalize recreational marijuana across the state by the end of the year. It will allow adults of at least 21 to purchase and possess up to 30 grams of cannabis.
Residents are just waiting for the Governor, who has shown support for the initiative, to sign the bill into law. There is speculation that New Jersey and New York will finally be able to pass a bill in 2020, although past attempts have failed. In both states, new elected officials and compromises have made residents optimistic that legalization is coming soon.
5. China is now claiming that the wide-spread legalization of marijuana across the U.S. is a threat to China.
They are mainly claiming that the volume of marijuana being smuggled into China is increasing. Chinese law is extremely strict when it comes to drug trafficking. Being caught with even 50 grams of an illegal substance can result in the death penalty.
In 2018, China’s National Control Commission saw a 25% increase of marijuana users and a similar rise is expected this year. Some speculate that the recent statements blaming the U.S.’s increased legalization comes from current trade conflicts between our two countries.
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