Whitefish, MT / March 14, 2014 / Cannabis stocks moved lower last week alongside the overall market, despite significant progress in many political and policy initiatives, as investors locked in profits. The market has been growing increasingly concerned about a slowdown in China after its bearish industrial production readings while the escalating conflict in Ukraine has raised geopolitical risk levels. Investors responded by reducing market exposure to limit risk.
Several cannabis companies were strong performers last week, despite the overall decline in the Marijuana Index®. Easton Pharmaceuticals Inc. (EAPH) rose more than 60% after Global Links Corp. (GLCO) announced an agreement to jointly develop an exclusive line of health and beauty hemp-based products. GrowLife Inc. (PHOT) shares also rose more than 40% as its GIFT program continued to generate bullish sentiments among traders and investors.
On a regulatory level, CARICOM’s move to create a regional commission to analyze the possibility of legalizing marijuana represents another step forward for the industry on a global level. In the United States, California Democrats also voted to include marijuana legalization in its official party platform, demonstrating increasingly widespread acceptance among the general public and politicians.
- CARICOM Debates Marijuana Legalization – Jamaica’s move to legalize cannabis has brought the matter to the attention of CARICOM, the Caribbean’s major trade bloc, which put the matter on its agenda.
- Investors Seek First-Mover Advantage – The medical marijuana market is rapidly growing with 17 states legalizing the substance, while the new MMPR regulations have kept Canada’s market in focus, and investors are noticing.
- California Democrats Add Cannabis to Platform – California Democrats will add cannabis legalization to the state’s official party platform after a vote showed tremendous support for such initiatives across members.
- Abattis Completes Acquisition of Green-Gro – Abattis Bioceuticals Corp. (ATTBF) recently completed its acquisition of Green-Gro Garden Products Ltd., which will add nutrient lines to its comprehensive offerings.
- FastFunds Launches Cannabis Social Media Platform – FastFunds Financial Corporation (OTCBB:FFFC) announced the launch of GreenEnergyMedia.TV as a mainstream informational portal for the cannabis industry.
What to Watch This Week
The cannabis sector experienced profit-taking last week alongside the major indices, but favorable regulatory and political actions bode well for the sector’s future. Traders and investors should watch for a recovery in cannabis stocks as short-term speculation yields to long-term investment, particularly after Colorado’s successful January tax revenues and the ongoing initiatives that are legitimizing the industry.
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