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 ballot measure to legalize possession of marijuana in Wasington, D.C. got a boost on [click to continue...]
Washington State is warning dozens of applicants for recreational marijuana business licenses that their chance [click to continue...]
A Colorado marijuana edibles company is under increasing heat as a lawsuit filed against its [click to continue...]
The Marijuana Policy Project (MPP) is using a now-infamous first person account of excessive cannabis [click to continue...]
Mjardin Management isn’t exactly an original idea, given that it’s a consulting and management company [click to continue...]
If Republican Bruce Rauner had his way, Illinois’s 60 medical marijuana dispensary permits and 21 [click to continue...]
Although recreational marijuana proponents often argue that legalizing and taxing cannabis will help undercut illegal [click to continue...]
An attempt to ease the lack of banking services for Colorado’s cannabis industry may prove [click to continue...]
Should states rely on chance to decide who gets to produce medical cannabis? A Florida [click to continue...]
A Democratic state senator in New York is planning to introduce a bill next year [click to continue...]
Illinois is keeping information about applicants for medical marijuana business permits completely confidential, ostensibly to [click to continue...]
Opponents of the push to legalize medical marijuana in Florida recently announced a $1.6 million [click to continue...]
As the 2014 election approaches, politicians are increasingly comfortable addressing marijuana issues as part of [click to continue...]
For many voters, a key selling point of recreational cannabis legalization is the possible tax [click to continue...]