The Toronto Stock Exchange had a hard dose of reality today when the exchange lost over 260 points to rest at 15,518.81 during afternoon trading.
Sean Spicer started the ball rolling with his hardline comments Thursday about how the United States federal government wouldn’t turn a blind eye to the expanding legalization of recreational marijuana.
He was quoted during his daily press briefing, “I do believe that you’ll see greater enforcement of [recreational marijuana]. There’s two distinct issues here: medical marijuana and recreational marijuana. I think when you see something like opioid addiction crisis blossoming in so many states around this country, the last thing we should be doing is encouraging people.”
Spicer, as usual, has his head firmly planted up Trump’s ass.
His sideways association of recreational marijuana use and opioid addiction is laughably inappropriate.
There isn’t a developing pandemic of marijuana use and I am confident we won’t see one.
What we are seeing, for the first time, are the real numbers of hard-working, productive citizens who already imbibe.
Since Spicer struggles with his role as a press secretary, I will assume his understanding of addiction and public health are less than adequate and rife with alternative facts.
Regardless, marijuana stocks on the TSX took a hit as investors sought to mitigate their investment risks in the wake of the U.S. Administration’s continued lunacy.
The selling surge, spilled over into other verticals as a general sense of unease over the future spread throughout the investment community.
This correction needed to happen and there’s still more to come in the near term as Trump shouts to all of America that, “Now you finally have a president, finally.”
Queue ominous soundtrack.
Canopy Growth Corporation (WEED.T) slipped 3.91% to $11.80 per share, despite news that one of the company’s flagship brands, Tweed, was named an Emerging Cult Brand at The Gathering, a yearly conference which celebrates the world’s most successful cult brands within the legalized cannabis space.
Also within the space, Golden Leaf Holdings (GLH.C) dropped 2.90% to $0.335 per share today.
The company put out news yesterday that it had launched its new Golden Gold Label Reserve product line, new Private Stash brand flavours and branded Golden full flower pre-rolled joints.
Golden Leaf Holdings CEO, Don Robinson, commented, “The introduction of the Gold Label Reserve product line, new Private Stash products and branded Golden pre-roll joints allows us to continue building out our differentiated brand portfolio targeting relevant consumer segments in the market. We expect that the new products will fill an unmet gap in the recreational marketplace and support increased cannabis oil sales.”
Outside of the dot bong sector, Manganese X Energy (MN.V) bumped 4.65% to $0.225 per share in the wake of the company’s announcement yesterday that it had closed the final tranche of a private placement financing. This tranche was made up of 3.0 million flow-through shares at $0.15 per FT share for gross proceeds of $450,000.
The company also announced yesterday that it had added to its Board of Directors with the appointment of Dr. Luisa Moreno, Co-founder and Managing Partner of Toronto-based Tahuti Global, a leading global advisory and consulting firm.
As I finish this piece, the TSX has managed to bounce back somewhat to 15,536.26.
With trade agreements on the chopping block, tariffs on the table and unsustainable tax reform policy, the Trump administration makes for an uncertain economic outlook both at home and abroad.
I’m not telling you to dump your stocks and buy gold, but be judicial in your investment strategy.
With Trump flushing the United States down the toilet, investors should keep their eyes on Canadian weed companies as relative safe havens to build their cannabis investment portfolio.
FULL DISCLOSURE: Golden Leaf Holdings and Manganese X Energy are EQUITY.GURU clients.