U.S. President Biden Pardon Stokes Big Move For Marijuana Stocks
U.S. President Biden’s latest marijuana-focused Tweet storm surely added spice to the mix if the stock market’s choppiness was lulling you to sleep. In late afternoon trading on Thursday, what some are calling a “Dark Brandon” move, Biden said the following in a Tweet thread that sent a shockwave through higher-priced stocks and penny stocks alike:
As I’ve said before, no one should be in jail just for using or possessing marijuana. Today, I’m taking steps to end our failed approach. Allow me to lay them out.
Biden On Weed & Marijuana Legislation Plans
What did President Biden say about weed today? On Twitter, he proceeded to lay out several action items in the Tweet thread that included the following:
- Pardoning all prior federal offenses of simple marijuana possession.
- A call to governors to pardon simple state marijuana possession offenses.
- Request to begin the process of reviewing how marijuana is scheduled under federal law.
Biden closed his Tweet thread by saying, “Sending people to jail for possessing marijuana has upended too many lives – for conduct that is legal in many states. That’s before you address the clear racial disparities around prosecution and conviction. Today, we begin to right these wrongs.”
Marijuana Penny Stocks To Watch
Countless marijuana stocks are trading in the public markets. Though many of them are on the Over-The-Counter exchange, many still trade on the NASDAQ and NYSE. Those looking for more liquidity seek out listed stocks to ensure easy tradability and easy entry and exit.
Here’s a list of penny stocks to watch and some of their recent updates to keep track of in the stock market today after the Biden marijuana news begins circulating:
Marijuana Stocks To Watch #1: Canopy Growth (NASDAQ: CGC)
The company was once the jewel of the cannabis market, garnering big money investments from the likes of major alcohol companies like Constellation Brands (STZ). Fast-forward to this year, and CGC stock is trading as some of its lowest levels in years. The Biden cannabis update lit a fuze in early October, breathing new life back into the penny stock.
Latest CGC Stock News
Coincidentally, the last update triggered a mixed response from the market. The company announced the divestiture of retail businesses across Canada, including stores operating under the Tweed and Tokyo Smoke brands. “We are taking the next critical step in advancing Canopy as a leading premium brand-focused CPG cannabis company while furthering the Company’s strategy of investing in product innovation and distribution to drive revenue growth in the Canadian recreational market,” said David Klein, CEO, Canopy Growth, in the September update.
Similarly, Aurora Cannabis stock exploded on Thursday. It’s one of the cheaper cannabis penny stocks on this list, and it saw its price jump from around $1.20 to more than $1.30 during regular trading. The marijuana news from President Biden prompted a bit more optimism in the company.
Latest ACB Stock News
Aurora’s most recent update came as it released the latest round of earnings for its full year and fourth quarter for Fiscal 2022 performance. Sales were down year-over-year for the quarter, and Aurora reported a Q4 loss of C$618.8 million. Nevertheless, the company appears to remain on track, reaffirming hundreds of millions in cost savings by December this year. It also recorded a debt reduction of more than $155 million for the quarter.
“We are beginning to see signs of stabilization in our Canadian adult recreational segment and are excited about the contributions from the Thrive acquisition which continues to advance our premiumization strategy. Finally, our investment in science is beginning to pay dividends; we delivered nine new proprietary cultivars to market during the year, providing rotation and variety to consumers and driving meaningful improvements in yield.”
Miguel Martin, Chief Executive Officer of Aurora.
Tilray stock rallied more than 30% during the session. Thanks to the marijuana pardon news from the U.S. President, TLRY shares caught the first boost in bullish trading in months. It was one of the most significant one-day moves the marijuana stock experienced this year.
Latest TLRY Stock News
This week the company announced the relaunch of its medical cannabis oral solution in Ireland. This falls under the country’s Medical Cannabis Access Program. Denise Faltischek, Tilray Brands’ Chief Strategy Officer and Head of International Business, said, “We are extremely proud to relaunch in Ireland with an expanded footprint. The MCAP reimbursement approval is a tremendous step in providing patients with greater access to Tilray’s high-quality medical cannabis products that address their needs. We remain dedicated to do our part to increase access for patients in need around the world.”
Another stand-out cannabis company in the stock market today was Cronos Group. Shares exploded to test the penny stock’s 200-day moving average for the first time since mid-2021. CRON stock has remained incredibly depressed over the last year and a half, thanks to a lack of legislative progress in the industry, specifically in the United States. Thanks to the Biden marijuana news, CRON stock joins this list of penny stocks to watch.
Latest CRON Stock News
Cronos doesn’t report much on its newsfeed. Regarding earnings, the last financial performance update from the company’s second quarter showed strong earnings growth over the previous year. Revenue came in$7.4 million higher in this year’s Q2 compared to 2021. Cronos reported just over $23 million for Q2 2022. Meanwhile, the company saw a decrease in the net loss by 88% to $20.33 million.
CEO Mike Gorenstein explained in an August update, “Continuing to hit these productivity milestones fuels our innovation pipeline focused on creating borderless products with rare cannabinoids that amplify and differentiate the consumer experience. With a focus on utilizing rare cannabinoids, you have seen the success of our approach in the gummy category in Canada. We intend to apply this same strategy to win in other categories such as vapes and pre-rolls.”