Marijuana Stocks Surge 20%-80% as Investor Optimism Over Cannabis Swells
Shares of public cannabis companies started off 2014 with a bang, posting huge gains on the first day of trading since the successful launch of recreational marijuana stores in Colorado.
Many stocks rose at least 20% in intra-day trading on Thursday vs. their 2013 closing price. A handful surged more than 60%, and one touched 80%. That’s a stark contrast to the broader stock markets, which dipped into the red.
Only a handful of marijuana stocks declined.
The stock spikes reflect excitement over the future of the cannabis industry after retail cannabis shops successfully launched in Colorado on Wednesday. The first stores encountered huge demand, and the “cannabis chaos” that some predicted didn’t materialize.
That stoked optimism among investors about the continued spread of marijuana laws – and the businesses that benefit from them.
Cannabis stocks – all of which are listed on the over-the-counter markets – are subject to rapid price changes, as they are thinly traded. So they could relinquish some or all of these gains quickly.
Regardless, it’s a great way to start 2014 for the industry.
Last year, nearly half a dozen cannabis stocks ended the year down, though the sector as a whole experienced a late-December rally.
Here are some of Thursday’s biggest cannabis stock movers (note – prices reflect intra-day highs as of mid-afternoon Eastern Standard Time):
As the impending September timeframe looms for medical marijuana businesses to apply for operating permits [click to continue...]
A medical marijuana vending machine generating plenty of buzz in the media has made its [click to continue...]
The third-largest city in Colorado awarded 21 licenses for cannabis shops on Thursday, paving the [click to continue...]
More good news on the financial front for cannabis businesses: A company that sells self-service [click to continue...]
For four years, the Drug Enforcement Administration has allowed the federal government to grow a [click to continue...]
The Massachusetts dispensary licensing process has evoked the ire of several applicants who feel that [click to continue...]
Florida’s medical marijuana ballot measure will create an overlooked business opportunity: paraphernalia sales. Currently, it’s [click to continue...]
Washington State recreational marijuana shops have had it with the sky-high prices licensed growers are [click to continue...]
Two Canadian cannabis cultivation companies saw their share prices soar on the first day of [click to continue...]
Taxing recreational marijuana sales is a tricky business, as a Denver judge pointed out in [click to continue...]
The town of Port Angeles, Washington, has experienced a marijuana boom in 2014. But the [click to continue...]
Just because Oregon is poised to legalize recreational marijuana in November doesn’t mean everyone in [click to continue...]
A Denver medical cannabis company says it’s “befuddled” by obstacles it has encountered while trying [click to continue...]
Federal versus local control over marijuana. That’s the question at the heart of two lawsuits [click to continue...]