Monday Stocks Have a Case of the Mondays

A Case of the Mondays

Stocks started out with a positive bias, but the early bullishness waned as the day continued. Cannabis stocks started the week dragging. Apparently, they had a case of the Mondays.

Surna hosted a conference call for shareholders at 4:15pm EST today. We imagine attendance was high as many market participants are eager for more information about the business and recent management changes.

The adult use market is now officially in four states: Colorado, Washington, Oregon and Alaska. The latter two will not officially come online for several more months. The two existing states have generated significant sales. However, the regulated cannabis model is still in need of significant refinement as regulators learn how this market functions.

The state of Washington launched its adult use side by missing a critical step in addressing its existing medical market. Washington’s medical program is barely regulated with most cannabis grown by collectives, in small, untested quantities. Anything that is medical should be held to a higher standard for patients. We wouldn’t want them to be consuming cannabis that has pesticides, mold or other issues. We want existing operators to have the operators to thrive, but hope they would rise to the occasion and prepare for a regulated industry for the betterment of the whole space.

Because Washington has had so many issues with the discrepancy between its adult use and medical programs, regulators and industry leaders recognized the issue. The individuals and committees have been working together to bring the entire cannabis marketplace under better oversight. Today, we see progress.

 

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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