What Catalysts Are Needed to Get Marijuana Stocks High?

May 24, 2021 (Investorideas.com Newswire)

Traders Want MJ Stocks to Get Much Higher, but will They?

In April 2021, news permeated the markets that three high-powered US senators in Cory Booker (Democrat - New Jersey), Ron Wyden (Democrat - Oregon), and Senate Majority Leader, Chuck Schumer (Democrat - New York) are hard at work drafting a comprehensive reform bill on cannabis.

This action comes hot on the heels of February initiatives, vis-a-vis the Marijuana Policy Project and other marijuana advocacy organizations across the US. They launched the US Cannabis Council (USCC) a non-profit organisation to advance cannabis reform. Clearly, the big action - if it happens - rests with the Comprehensive Federal Cannabis Reform Bill.

Despite opposition from the Republican side, two house GOP members recently pitched a federal marijuana legalization bill as well. The bill, dubbed Commonsense Cannabis Reform For Veterans, Small Businesses, And Medical Professionals Act has a narrower scope, but is equally encouraging for the industry.

The bill was pitched by Don Young (Republican - Alaska), and David Joyce (Republican - Ohio). If approved, this bill will officially remove marijuana as a federally controlled substance, and provide banking protections to the industry. Military veterans will also have access to legal marijuana programs.

The executive director of the Washington DC Marijuana Policy Project (Steve Hawkins) lauded the bill as a step in the right direction, but wanted more in terms of equity provisions and social justice to be included in discussions of marijuana legalization.

It is against this encouraging backdrop of bipartisan initiatives to legalize and decriminalize marijuana that several top-tier marijuana stocks come into consideration. Several marijuanna stocks have featured prominently in recent weeks, including: Green Thumb Industries Inc (OTCQX: GTBIF), American Cannabis Company Incorporated (OTCQB: AMMJ), and Canopy Growth Corporation (NASDAQ: CGC).

Green Thumb Industries Inc (OTCQX: GTBIF)

Recently, the founder and CEO of Green Thumb Industries Inc announced that his company was at the forefront of innovation in the cannabis industry. The company's first-quarter sales beat expectations in a big way. It generated revenue of $194.4 million, up 90% year-on-year. The company also acquired Dharma Pharmaceuticals as part of its strategic effort to expand the market into Virginia.

It is worth pointing out that it will be legal for adults to use marijuana in Virginia in July. The technical indicators for the stock, notably Bollinger Bands show that the prevailing price is rapidly approaching the lower Bollinger Band level, which indicates oversold territory. Stocks typically bounce once they are oversold. Given the stock's positive performance in 2021, there is reason for optimism.

American Cannabis Company Incorporated (OTCQB: AMMJ)

American Cannabis Company Incorporated (OTCQB: AMMJ) is currently trading sideways, after a brief spike in early February 2021. The stock has been hovering around the $0.1691 - $0.2461 level since April. This penny stock popped in early February, before selling off a few weeks later. It has consolidated in a tight trading range, buoyed in part by its latest news.

American Cannabis Company Incorporated will now be distributing 'Her Highness' branded products across Colorado. This high-end cannabis product designer and accessories producer is widely revered in the industry. 'Her Highness' is based out of New York, and led by co-founder Allison Krongard. This cannabis accessories industry caters to female cannabis users.

Canopy Growth Corporation (NASDAQ: CGC)

Canopy Growth will be reporting Q4 earnings and fiscal year 2021 financial results within days. Canopy growth is releasing its Q4 results for the fiscal year 2021 dated March 31, 2021 before markets open on 1 June, 2021. The CFO and EVP, Mike Lee, and the CEO David Klein will host an audio webcast of the financial results. The company is a leading provider of cannabinoid consumer products and diversified cannabis products across the United States.

The company partnered with Fortune 500 alcohol company Constellation Brands. Better than expected earnings reports will certainly boost demand for CGC stock, which is trading around the $22.82 level. Based on current price action, the stock is approaching its lower Bollinger Band technical level, which indicates momentum towards oversold territory. It isn't quite there yet, and the earnings reports will certainly provide enough of a jolt, up or down.

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions.. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp. This article is a third party guest post published content and not the content of Investorideas.com. Learn more about posting your articles at http://www.investorideas.com/Advertise/

Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp