After spending much of last week on the ropes, cannabis stocks bounced back in a big way on Thursday, rallying more than 8% - their best day of 2019.
After several developments seen as bullish for the sector, The cannabis-focused Alternative Harvest ETF (MJ) closed 8.15% higher, its best day since an 8.2% jump in October 2018. Much of this was on the back of good news coming from, and to, the marketplace:
- Positive earnings reports from US multi-state operators
- Pro-cannabis legislation advancing in the House (more on this later)
- Reports of more dispensaries potentially gaining approval to open in Ontario
Canopy Growth Corp. (TSX: WEED) was one of the companies to feel the boost and saw its highest buy volume ever on Thursday.
Combined with the changes reported in Ontario, Canopy Growth is seeing support from the SAFE Banking Act coming closer to fruition and the edible / drink market is beginning to take shape. The company intends to preview its “Cannabis 2.0” product lineup on November 28th and its new CEO will also be announced soon.
Meanwhile south of the border, the House Judiciary Committee approved a bill this week to legalize cannabis on the federal level, removing it from Schedule 1 of the Controlled Substances Act. Now it just needs to pass the Senate to actually happen.
The story continues on CNBC here .