Cannabis investors are in the middle of earnings season, which is also a timely opportunity to take a look at the stock performance of some of the big players in the space. As Canadian marijuana stocks struggle to gain momentum, optimism about the US outlook. UU. The legalization of cannabis is evident, writes Bill Peters of the Investor's Business Daily.
The House of Representatives passed the Marijuana Opportunities, Reinvestment and Removal of Criminal Records (MORE) Act, H, R. Legislation that would remove cannabis from the Federal Controlled Substances Act, allowing states to legalize cannabis, its production and sale without federal interference, is now awaiting review by the Senate. Charles Schumer (D-N, NY). A group of 24 senators from both sides of the aisle urged congressional leaders to enact marijuana banking provisions earlier this month as part of the large-scale manufacturing bill, the U.S.
Competes Act. And about a quarter of the voting members of the House of Representatives have supported the idea that the bipartisan Safe and Fair Enforcement Banking Act (SAFE) would help cannabis-related businesses, support innovation, create jobs and strengthen public safety in our communities. In addition, Rep. Nancy Mace (R-SC), a Republican congresswoman who defended the State Reform Act, a cannabis reform bill, said in March that she had received assurances that a hearing on her proposal would be held, even as a minority member of the House.
CNBC's Jim Cramer said Friday that Canadian cannabis giant Canopy Growth needs domestic legislation that promotes the use of marijuana, not only full legalization, but also subsidies for its shares to rise to their previous highs. The company is making its way into the U.S. Market, a new position for the federal legalization of cannabis with the recent acquisition of Lemurian, Inc., a producer of high-quality cannabis extracts based in California and a pioneer of clean vaping technology. What about Aurora and Tilray? The shares of the industrial pairs of Canopy, Aurora Cannabis Inc., ACB and Tilray Inc.
TLRY also experienced a drop so far this year, of 51% and 38%, respectively. Tilray released its financial results for the third fiscal quarter last month, highlighting the continued strength of international business, with revenues increasing by more than 4,000% compared to the previous year's quarter and a 37% increase in revenues in EMEA compared to the previous quarter. Zuanic said that international business accounts for 29% of cannabis sales and probably close to half of gross profits, which was the main conclusion of the quarter. Meet the main players in the cannabis industry and make deals that boost the industry.
With live company presentations, insider panels and unparalleled access to networking, the Benzinga Cannabis Capital Conference is where executives and entrepreneurs meet. Then, with Congress stuck on almost everything, cannabis stocks faltered and fell into disrepair. Only Trulieve Cannabis (TCNNF 1.64%) continues to record significantly higher sales than a year ago. All cannabis stocks fell when optimism for federal legalization reached a peak following Democratic victories in the Senate and White House early last year.
Some of British Columbia's cannabis stores say they are closing their doors and laying off staff after a labor dispute in the public sector prevented the province's marijuana distribution center from shipping products since the beginning of last week. Worse still, with inflation rising and consumer portfolios seem too small to justify spending money on cannabis, there isn't necessarily a big recovery to expect in the short term. But the decline was much greater for Canadians overall, as the cannabis market there has been incredibly tough compared to the strong US market. The other disadvantage is that this is not exactly a favorable market environment for cannabis growers seeking funding to issue new shares, since their share prices are considerably lower than before.
Possible reasons for this compression include concerns about slowing growth due to delays in creating new recreational cannabis markets in New Jersey and New York, and price pressure in still-developing markets, such as Arizona, Illinois, Massachusetts and Michigan. If you're seeing a red wall in the investment account where you hold your cannabis shares and you're wondering if you've made a series of terrible mistakes, you're not alone. BNN Bloomberg determines the price of cannabis companies on the stock chart above by determining the total dollar value of all shares traded during the previous three-month period. For emerging industries, such as cannabis, that's bad news, as it means that companies will have to bear higher interest expenses in the future if they want to borrow money to expand.
Before there is significant institutional investment, federal legislation must be passed that gives the cannabis industry access to the U. In the first, heady days of the legalization of cannabis, owning a licensed marijuana store was considered an easy way to earn money. . .