Hope Springs Eternal: Canadian Cannabis LPs Index Up 20% Last Week

Introduction

We've heard this song before - "the Senate is on course to pass new cannabis banking rules in the not-too-distant future" - yet hope springs eternal with investors if the major price moves in some Canadian cannabis are any indication.

In an article last week, Marijuana Moment reported that, while the House of Representatives has passed versions of the Secure And Fair Enforcement Regulation (SAFER) Banking Act seven times, it has failed to pass in the Senate - but that this time around, SAFER has passed a vote before the Senate Banking Committee and now, according to Senate Majority Leader Chuck Schumer, has bipartisan Congressional support and could be passed in the Senate in the coming months. If passed, it would permit marijuana companies to take out loans and use other banking services, lowering their cost of doing business, possibly lowering costs for consumers -- and improving profits for marijuana companies.

The munKNEE Canadian Cannabis Licensed Producers (LPs) Index

The Marijuana Moment article had a major effect on the prices of the 5 stocks in the Canadian Cannabis Licensed Producers (LPs) Index last week. The Index jumped 38.8% mid-week before dropping to +14.8% by week's end. Below are how much each of the 5 stocks jumped last week, in descending order, and are up YTD:

  1. Aurora Cannabis (ACB): up 51.0% last week; up 37.8% YTD
    •  Aurora continues to benefit from the news that the German government was proceeding to pass marijuana reform that will make it easier for medical marijuana patients to obtain cannabis and benefit Aurora directly as a major supplier of cannabis into Germany.
  2. Canopy Growth (CGC): up 18.0% last week; up 99.2% YTD
    • Canopy has received a favorable recommendation from Institutional Shareholder Services regarding its proposal for the creation of exchangeable shares which would facilitate the Company’s entry into the U.S. cannabis market, particularly through its U.S.-domiciled holding company, Canopy USA, LLC and give it the ability to acquire additional assets, including Acreage Holdings, Inc. (OTC: ACRHF), Mountain High Products LLC, Wana Wellness LLC, The Cima Group LLC, and Lemurian Inc..
  3. Tilray Brands (TLRY): up 5.3% last week; up 13.0% YTD
    • Tilray sees the legalization of medical marijuana in Germany creating a massive opportunity for them there enabling them to expand their facility there to sell medical cannabis to any pharmacy in the county.
  4. Cronos Group (CRON): up 1.5% last week; up 28.2% YTD
  5. Organigram Holdings (OGI): down 1.4% last week; up 61.8% YTD

Summary

On average, the Index was up 19.5% last week and is now up 53.9% YTD.


More By This Author:

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Disclosure: None

This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed. ...

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