Stocks took an uptick to start the week after three weeks of declines. The rise occurs along with news of some corporate deals in the pharma space. Additionally, investors await the Fed’s word on the potential timing to increase interest rates during this week’s FOMC meeting. The S&P 500 rallied higher by 1.34% to 2,081.
Cannabis stocks began the week with mixed action. Volumes continue to be lackluster and some of the recently pumped stocks have now been left to crater. Once again, these pump and dumps are impairing capital for those that get swept up in the overly positive, often misleading press releases and social media action.
Daily Positive: GW Pharmaceuticals (NASDAQ: GWPH) continued to rally once again today as the U.S. ADR approaches $100 per share, closing at $99.90. You can’t get much closer than that!
We have talked before about our love for hemp—the plant, not the company—and all of its potential for improving our health, our economy and our agriculture. We were pleased to see some great news on the topic this morning. According the the Hemp Industry Association, the hemp trend is growing and more hemp is being used and consumed than in prior years. In 2014, it saw a growth rate in the retail market of 21.2%, bringing the retail sales for hemp products to $620 million.
With continued and improved research coming out of the Farm Bill, as well as more states allowing the cultivation of hemp for research, the industry is looking to take off!
As some in the public market look to exploit a good thing, be on the lookout for companies claiming to be involved in hemp. Many of the existing public companies use this good name to gain investors, but have little-to-nothing to do with the actual hemp plant. It is just a note of caution because these types of companies are likely to reference the HIA’s good news, but it might not actually relate to their business at all.