Tuesday State of the Union

State of the Union

Global equity enthusiasm failed to translate into U.S. equities. We saw selling pressure immediately at the open as investors continue to move to the sidelines. Could this finally be the year that international markets outperform the United States? The S&P 500 managed to climb back into the green by the close for a gain of 0.18% to 2,023.

The press machine is back in full force today in the cannabis sector. It appears that many companies in the space were preparing their press releases over the long weekend. It is not surprising to see this action and even encouraging that the flood of press has not lead the sector to jump as it did last year. As a whole, cannabis stocks had a mildly bullish bias on the day.

Daily Positive: We like the idea of growing in greenhouses versus warehouses for many reasons. Two Rivers (OTCQB: TURV) has completed financing for its cannabis greenhouse.

Daily Due Diligence: Strategic partnerships among OTC companies should be questioned thoroughly. Who are the players involved? What are the terms of the transaction? Ultimately, does it add value to the investor or is it just a marketing opportunity for the companies involved? As an investor, make sure you are comfortable with the deal.

Tonight is President Barack Obama’s State of the Union (#SOTU) address. This is the time that our government is (or should be) asking itself how it’s doing. We are the collective boss of our government. We give feedback on its performance with our votes. The government should be doing what it can to respond to our collective requests.

Will cannabis and hemp be on the docket? If not, what do we need to do to get our issue more attention? The business of cannabis and hemp is real and lasting and as we’ve talked about in the past, it is important to acknowledge the role of politics in this industry.

For more on this and how to enact change in our government, check out and support the organizations who are acting on our behalf: National Cannabis Industry Association, Marijuana Policy Project, Drug Policy Alliance, NORML, Hemp Industry Association and Vote Hemp.

We are the ones who can make the State of the Union consider 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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