Tuesday Try to Hold Back on ‘Baked Alaska’ Jokes

Baked Alaska

U.S. equities worked upward today as Federal Reserve Chairwoman Janet Yellen testified to Congress. While she suggested the Fed will drop the word “patient” from its policy, she used dovish language to convey there is no rush or aggressive action in the near term. The S&P 500 closed up with a fresh record at 2,115.

Cannabis stocks were mixed again today. Some solid names hovering around lower levels, which again is frustrating and likely the effect of low volumes.

Daily Positive: See below on Alaska!

Daily Negative: There are still some names in the space that are manipulating investors and jumping from story to story using specific buzzwords. Please exercise caution when it comes to Pink Sheet stocks.

Alaska is officially legal for adult use cannabis! Try to hold back on the “Baked Alaska” jokes, although there is a lot of fun to be had with puns in this industry.

But this is no joke, we need to applaud the efforts of the people and organizations that pulled off this effort. At this point, the only missing link to locking up the west coast is California. With the neighbors to the north joining in to allow for responsible adult use, we hope it is only a matter of time. Alaska still does not allow public consumption and the state will likely be feeling its way through the process until it refines the laws to get shops opened. However, we are pleased and proud that Alaska is moving forward.

What does this mean for investors? Well, it is one more state toward the tipping point. Also, it is an additional market of consumers. Alaska tourism is rising in interest as people travel to take in the sites and natural beauty. Now they can enjoy this grandeur with the benefit of legal cannabis.

 

The discussion above is provided for informational purposes only and does not constitute an offer of, or solicitation for, any investment services or products offered by the author. The author is not making any investment recommendations and the opinions above do not constitute investment advice. Reference to above indices [and companies] is based on information provided by sources the author believes to be credible. Investing in the cannabis industry, as with other industries, presents certain risks including the risk of loss on an investment.

Morgan is a Founding Partner and Managing Director of Poseidon Asset Management. He is the Chief Investor of their Cannabis Focused Fund. Morgan previously worked for a privately owned Registered Investment Adviser and earlier was at UBS Financial Services focusing on wealth management. Morgan believes in the potential of the cannabis industry and likes having an active involvement as it develops. You can follow him on Twitter @PoseidonAsset.

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