Equities were generally quite tame today as we finished the day pretty much where it began. It wouldn’t be surprising to see the markets digest some of the recent snapback, especially without some positive catalysts. The S&P 500 closed with a mild decline of 0.15% to 1962.
Daily Positive – Heads up tomorrow, there is a day-long Cannabis Investor Webcast featuring several industry names. This is mostly a marketing opportunity for companies to tell their story. However, for new investors, it is interesting to hear the companies’ objectives in their own words. As always, take marketing stories with a grain of salt and dig deeper into the companies of interest.
Daily Negative – PINKs pop as broad cannabis volume dips. We do not advocate for PINK sheet stocks and today’s action is further confirmation. We see action in these names as nothing more than a market distraction. Many of these stocks are down 80-90% or more from highs seen just a few months ago.
The New York Times continues with her push to raise awareness around the injustices related to marijuana arrests and calling out politicians for talking out of both sides of their mouths. The Gray Lady called out the lack of progress in New York state and Mayor de Blasio’s promise to focus on decreasing the arrests for possession.
Marijuana charges are disruptive for anyone implicated and often result in loss of work, potential future employment issues and gratuitous time served. According to Marquita Johnson, a staff attorney with the Legal Aid Society, “anyone in car where contraband is found can be charged with possession.” This plant is known to have medicinal properties and is being researched extensively internationally to understand the compounds and their relationships to chronic and terminal illness.
People are becoming millionaires and their tax dollars are supporting communities, but people in states that lag behind this progress are still sitting in prison. This is something to keep in mind as the elections draw near and to keep pressuring elected officials to answer to this issue. The judicial process is costly and that money could be deployed to far better ventures. As investors, this is a drag on the bottom line for anyone betting on the growth of this industry.