North American manufacturers of cannabis straight bloomed after last week the Democrats won the second round of elections in the Senate. Since the Senate proceeds under the control of Democrats, the universal opinion comes down to the fact that the legalization of marijuana is a matter of coming years.
Democrats clearly marked their intention to legalize "grass" at the federal level. This step will be eliminated by many legal, regulatory and financial obstacles. Markets responded instantly.
Canadian vertically integrated manufacturers have won the most from these news, which have previously spent time to enter the most tempting, as it is believed to be the Marijuana market in the world.
The shares of Canadian manufacturers of cannabis, which are also traded in the US markets, rushed up at the opening of trading on January 6, for the next day after the election, when the Democrats remained only one election campaign, and the rest followed them, although the counting of votes stretched out the next day .
APHRIA shares (NASDAQ: APHA) (TSX: APHA), Cronos Group (NASDAQ: CRON) (TSX: CRON) and others jumped, receiving a two-digit profit.
This movement was predictable, since the shares of "herbal" companies grew from the November elections, which Joseph Biden won. But at that time the Senate was controlled by the Republicans, and the path to legalization, or at least its term, remained in question. Now investors have gained confidence.
Last week, Cronos shares distinguished themselves significant growth. Yesterday, when you close trading, the stock price rose by almost 31% compared to the price when opening trading last Monday.
Tilray (NASDAQ: TLRY) rose most of all. Yesterday, when you close the bid, they cost $ 12.33, increasing our cost by almost 36.4% from the beginning of trading last week. This growth was ensured by the news that appeared last month about $ 5 billion merging with Aphria - the transaction, which will turn it into the largest marijuana manufacturer in the world.
The company intends to implement the US markets, including adult beverage markets. According to forecasts, the shares will continue their growth, because they still have to grow to compensate the losses incurred in 2020. Despite the last increase, the price of Tilray shares is still shown 20% decline over the past 12 months.
Perhaps investors should look at the Cronos Group located in Toronto. Its shares, traded in Canada, and on NASDAQ, made a dizzying jump, rising by 31% in the period between the opening of trades last week and yesterday's closure.
And in no way, you should not write off the company CANOPY GROWTH CORP (NASDAQ: CGC) (TSX: WEED) from Ontario. Conducting a strategic partnership with American Acreage Holdings (OTC: AcrHF), it will raise the path to the markets in the United States faster.
Its main shareholder, the American Beer Manufacturer CONSTELLATION BRANDS (NYSE: STZ), also wants its attachments to bring income on the extensive beverage market for adults in the United States. Therefore, wait for the rapid growth of operations.
New York wants access to marijuana tax income
And the news from the category "urgently in the room": another argument in favor of the heyday of the marijuana production sector appeared yesterday, after the Governor of New York Andrew Guomo promised to legalize the use of marijuana to adults and create a special office on the use of cannabis.
This decision will allow the "imperial state" to receive a very significant tax income from the legitimate use of Cannabis - a source from which neighboring states, for example, New Jersey, have been made of profit for several years. Guomo stated on Monday that the expected income from the tax on the use of marijuana will reach $ 300 million per year.