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):
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...]
Legalizing recreational marijuana in Oregon would represent a “net win” for the state from a [click to continue...]
The first of six medical marijuana dispensaries formally opened in Connecticut on Wednesday night. The [click to continue...]
A Canadian company is set to become just the second licensed medical cannabis cultivation business [click to continue...]
The California State Assembly keeps going in circles when it comes to medical marijuana, and [click to continue...]
Marijuana advocates in Alaska may be in for a disappointment come November. The latest survey [click to continue...]
Edibles manufacturers in Colorado are aggressively boosting production to meet overwhelming demand for infused candies, [click to continue...]
Entrepreneurs submitted nearly 400 applications for medical marijuana business licenses in Nevada by Monday’s deadline, [click to continue...]
Despite the best efforts of cannabis activists in Oklahoma, a proposal to legalize medical marijuana [click to continue...]
A high court in Canada has possibly opened the door to a new market for [click to continue...]
Arkansas could become one of the first Southern states to legalize medical or recreational marijuana [click to continue...]
Medical marijuana is starting to gain traction across the globe, particularly in South America. On [click to continue...]
Oregon health inspectors have made 58 surprise visits to medical marijuana dispensaries since late May, [click to continue...]