Marijuana Stocks Soar as Amazon Supports Cannabis Legalization
Marijuana stocks and cannabis legalization have always had their destinies interwoven. For instance, disruptions in the marijuana stocks market usually result in conversations regarding cannabis legalization and its potential effects. Similarly, activities and policies that support weed legalization generally offer a boost to the stock market.
This article aims to explore some trending cannabis legalization events from this week and some marijuana stocks that have benefited from activities like these in recent times.
Trending Cannabis Legalization Activities across the U.S.
The following cannabis legalization events from this week are likely to affect business decisions across the industry this month.
Delaware State Lawmakers File Cannabis Legalization Bill
Lawmakers in Delaware have launched another bill aimed at legalizing weed for recreational use across the state. Marijuana has been legal for medicinal use in Delaware since 2011. If House Bill 150 pulls through, it will add Delaware to the growing list of states that have fully legalized cannabis for both recreational and medical purposes.
Under the terms of HB 150, adults 21 and over will be permitted to legally buy up to an ounce of weed from a licensed seller. However, the coast is not yet clear. The bill which was introduced by Rep. Ed Osienski of Newark first needs to scale through a vote on the House floor. There are also concerns that Governor John Carney is not keen on passing legislation like this.
Amazon Wants Cannabis Legalization
Retail giant Amazon has expressed support for legalizing the use of marijuana nationwide. The tech giant recently announced that it will no longer test job applicants for gigs at company offices and warehouses for cannabis going forward. It will also not disqualify any existing employees for marijuana use. This update of its drug policy is certainly a welcome development in the marijuana community.
This is however not an indication that the company will start delivering cannabis products as it does not yet deliver even Delta-8-THC. Notwithstanding, Amazon’s support for federal cannabis legalization is a step in the right direction. It shows that just like people, big business is also ready for cannabis legalization nationwide.
Marijuana Stocks to Buy in June 2021
Here are the top marijuana stocks to buy this month.
Cresco Labs (OTC: CRLBF)
Cresco Labs has been a top wholesaler of branded cannabis products in the U.S. for many years. With a market cap of $3 billion positive year-to-date and 12 months performance, Cresco Labs remains a top stock to invest in. This weed stock is currently up 16.27% year-to-date and 173.42% over the past 12 months.
Another positive sign for investors is Cresco’s recent decision to diversify its Edibles & Vape portfolio. The company plans to diversify this portfolio by expanding three of its Good News Brand product lines in California, Illinois, and Michigan. Cresco’s strategic U.S. base also means it stands to benefit a great deal from potential federal cannabis legalization.
Organigram Holdings (NASDAQ: OGI)
However you choose to look at Organigram, it remains a top cannabis enterprise and a well-run business. It makes this list for its impressive 2021 numbers. For instance, as of the second quarter of 2021, Organigram had taken care of most of its debt. Its total debt is currently lower than its cash reserves, which is an impressive feat for any company in this industry. Also, Organigram simultaneously increased its revenue in the second quarter and significantly cut its losses.
Organigram’s international pull is also an attractive feature for potential investors. British American Tobacco owns a significant share of the company. This makes OGI a potentially great buy in the long term. In terms of numbers, Organigram’s weed stock is currently up 139% year-to-date. It also has a market cap of $948 million and an enterprise value of $717 million in its most recent quarter.
Closing Marijuana Stocks & Cannabis Legalization Thoughts
Marijuana stocks are performing positively on the stock market and it’s not a surprise. You love marijuana, Amazon loves it too. All that seems to be holding this mega-industry back is federal cannabis legalization. Despite the absence of federal legislation, cannabis businesses continue to find innovative ways to thrive and may have to continue doing so a little while longer.
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