The proof the big winner will be the US companies.This is not legalisation but I think it will push the market tomorrow.
The US companies will benefit a lot lot more than Canopy that will have to enter an already very competitive US market. I don't see the legalisation in the near future even if I am less pessimist than some who could be right. I will adjust to the situation.
I will invest in Canopy when the legalisation passes, probably before if I quit my job. The stability of a pay check begin to be less appealing.
The US companies will be the real thing being well established. The US companies can't deduct the salary of their employees, no credit card, no loan from the main banks. There are so many others penalties that the legalisation will wipe out.
Below is the "reality" but the bagholders will not agree since they are static.
The big increase for the US companies with not even a decriminalisation on the FED level. What a shame, I am pissed off by the arrogance of these politicians. Biden is obviously a pawn. Can you believe he said that the governors of the states should follow.
How about pushing it to the FED instead. Anyway the sector move on the news and it will retreat after the effect of the news. I will take the opportunity to take some short positions over the next few days if the tendency continue. The news is not digested yet, it is just out. The uninformed will buy.
I will definitively take a short position tomorrow with this increase in price, I am not working Friday afternoon. A message for the bag holders, if the increase continue next week, I will average up.
The politic decisions are obviously tied to the stock market. It is was obvious before, it is more than obvious with this crumb of decriminalisation. Now, how long for the legalisation? As long as it will take to please Wall Street. I own no shares in the cannabis sector.
WEED-T Canopy Growth Corp 5.16 +0.98
+23.44% GTII-CN Green Thumb Industries Inc 18.050 +4.360 +31.85% (US)
TRUL-CN Trulieve Cannabis Corp 16.500 +4.520 +37.73% (US)