Shares of cannabis companies fell at the start of trading on Wednesday, as investors disappointed that the Democratic sweep did not materialize to compensate for the surge from the win in the referendum. referendum in some states.
MJ ETFMG Alternative Harvest Fund
1.3% decrease in money market transactions.
Among the more active US-listed stocks, Tilray Inc. TLRY,
2.9% off, Aurora Cannabis Inc. ACB,
2.7% reduction, Canopy Growth Corp. CGC,
2.8% off and Cronos Group Inc. CRON,
Arizona, New Jersey, Montana and South Dakota voted to approve the sale of recreational marijuana to adults, and Mississippi voted to legalize medical marijuana.
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Meanwhile, the hope that Democrats will take control of the majority in the Senate is fading, as preliminary results as of early Wednesday suggest Democrats are not gaining much ground.
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Analyst Bill Kirk at MKM Partners wrote in a client note: “While the results are still unknown… a Democratic sweep, while favored by many cannabis investors, seems very difficult to happen ”.
The cannabis ETF was up 12.5% for the past month through Tuesday, compared with a 0.6% gain on the S&P 500 SPX,
when expectations for a Democratic sweep increased.
On the bright side for pot investors, it may not be necessary for a Democratic sweep to shed light on pot investors’ prospects. It is remarkable, Kirk said, that the ballot marijuana in Arizona appears to be a “significant contributor” to Joe Biden’s chances of winning in the state. (Biden took the lead on the status of this post but is still too close to call a winner.)
“We believe politicians from both parties will see its impact on voters and are more likely to speak out in favor of future cannabis initiatives,” Kirk wrote.