Cannabis Stock Report: Mixed Gains Signal Stability In Marijuana Markets

Cannabis stocks rallied Tuesday as marijuana markets rose one day following President Trump’s signing of a stop-gap spending bill to reopen the federal government. Wall Street ended the day mixed as Uncle Sam went back to work, with record highs seen on some indicators and slight pullbacks on others. Up north modest gains on Canada’s leading stock exchange reverberated down to the marijuana markets as well, with major indicators such as MJIC’s Canadian Stock Index closing flat. Last week’s volatility showed signs of stabilizing on Tuesday, as broader cannabis’ indices and market funds all posted early week gains.

With federal employees heading back to work on Tuesday investor confidence was mostly positive on Wall Street and the Canadian exchanges. News of Netflix increasing memberships dominated trading headlines in lower Manhattan while a rise in oil prices helped Toronto end the day in the black. The Dow Jones Industrial Average fell 0.01 percent, while the Nasdaq and the S&P 500 closed out at record highs again on Tuesday. Across the border, the S&P/TSX was up 0.06 percent to close the day at 16,357.55.

Tuesday saw cannabis fortunes settle in following last week’s ups and downs, with MJIC’s North American Marijuana Index climbing 9.90 points or 2.80 percent to 363.31. The real gains came from the U.S., where the United States Marijuana Index jumped 6.33 points for a 6.32 percent gain to end the day at 106.52. Meanwhile, Canada’s Index stayed relatively flat, gaining a little more than 1 percent in trading on Tuesday. Of note today, MJIC completed their quarterly rebalancing of the Index adding seven companies, including Cannabix Technologies, Inc. (CSE:BLO) (OTC:BLOZF) and WeedMD, Inc. (TSX-V:WMD) (OTC:WDDMF).

Other major indices in the sector also fared well on Tuesday, with 420 Investor’s The Cannabis Stock Index posting significant gains. The Index jumped 2.48 percent to close out the day at 172.29. Solactive’s North American Medical Marijuana Index showed a slightly smaller increase, climbing 10.64 points for a 0.54 percent gain. That index ended Tuesday at 1964.25.

On the market-fund front, the former Latin American Real Estate Fund, ETFMG’s Alternative Harvest ETF, gained $0.85 per share for a gain of 2.24 percent. The fund closed out the day at $38.84 per share. Horizon’s Marijuana Life Sciences Index ETF also climbed on Tuesday, growing slightly by $0.08 per share, or 0.34 percent.

Strong signals in the cannabis sector indicate the end of the early year volatility may be on the horizon. Nearly three weeks are gone by without mass raids from the Department of Justice, and the market’s “next-big-thing” players seem to be shaking themselves out without causing too much damage to everyone else. The fundamentals of the marijuana markets are strong, although the unknown unknowns are always around the corner.

Meanwhile Around The Industry…
One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute… Betting big on bitcoin is SinglePoint, Inc. (OTCMKTS:SING) who announced on Tuesday their intent to acquire cryptocurrency payment platform Bitcoin Beyond. The cryptocurrency technology allows retailers to accept bitcoins as a form of payment via existing web-enabled point-of-sale devices. SinglePoint joins a long list of companies entering the dual cryptocurrency-cannabis space over the past few months, none of which have yet to grab a share of the market successfully.

Going all in on the cryptocurrency-craze, SinglePoint devoted an entire division to the digital fiat and recently announced a partnership with Shark Tank’s Kevin Harrington. Harrington joins SinglePoint as their cryptocurrency spokesperson, leading the charge with a series of television commercials which were set to begin airing January 19. SinglePoint sealed the deal with Beyond Bitcoin for $1million all-stock price.

“We are thrilled with this opportunity,” remarked SinglePoint President Wil Ralston. “Acquiring Bitcoin Beyond put us ahead of what we believe merchants have access to now. This platform has by far the easiest user interface we have seen in the market, and we are confident merchants will be quick to adopt this solution as it stands as the sole alternative to traditional options offered to the cannabis industry,”

Medical Marijuana Inc. Goes To The Dogs
I buy on the assumption that they could close the market the next day and not reopen it for five years… Gone to the dogs is Medical Marijuana, Inc. (OTC:MJNA) who announced on Tuesday the formation of a new subsidiary with its eyes on the CBD pet market, Phyto Animal Health. According to a statement, the new brand will offer a range of CBD products targeting cats, dogs, and horses. The line ranges from CBD hemp oil, which claims to help with a variety of ailments, to all-natural hemp bedding and litter.

“We are excited to bring these revolutionary botanical products to market and help provide therapeutic benefits for a variety of animals,” said company. CEO Dr. Stuart Titus. “We’ve seen the popularity of our CBD products for humans grow significantly in recent years and look forward to achieving the same type of success in the animal health and wellness market.”

Cannabix 3.0
If stock market experts were so expert, they would be buying stock, not selling advice… Still trying is Cannabix Technologies Inc. (CSE:BLO) (OTC PINK:BLOZF) purveyor of the marijuana breathalyzer, who announced on Tuesday a prototype of the device was finally completed. The Beta 3.0 prototype, as the company calls it, claims to be an upgraded model from its predecessors, with reduced size for better portability and enhanced device sensitivity. According to a statement, preliminary tests of the device were successful in detecting THC.

“With completion of the modular Beta 3.0 prototype, Cannabix has achieved several key developmental milestones allowing this technology to be directly tested against the accepted laboratory standard of mass spectrometry,” remarked Cannabix Technologies Chief Scientific Officer, Dr. Raj Attariwala. The company’s statement conceded that any breathalyzer test would most likely need independent confirmation through the use of traditional mass spectrometry, testing.

Other News and Notes
Anybody who plays the stock market not as an insider is like a man buying cows in the moonlight… Doing paperwork is Pineapple Express, Inc. (OTCGRAY:PNPL) who announced on Tuesday a Form 10 Registration Statement with the Securities and Exchange Commission to register their common stock. In doing so the company hopes to expand its operations and provide more transparency for investors. “Our registration statement lays the groundwork for us to begin building our next chapter as a publicly traded company and we are thankful to our shareholders for their support,” noted company CEO Matthew Feinstein.

The main purpose of the stock market is to make fools of as many men as possible… Still talking is CanniMed Therapeuitcs Inc. (TSX:CMED) and Aurora Cannabis Inc. (TSX:ACB) who announced for the second straight day on Tuesday that negotiations were continuing in the never-ending saga that is their on-again, off-again merger. Meanwhile, Newstrike Resources Ltd. (TSX-V:HIP) announced on Tuesday that they would postpone some technicalities until the two parties resolved their differences. A meeting of CanniMed shareholders called to vote on the Newstrike deal continues to be scheduled for January 25.

Brandon A. Dorfman
Pot Network [January 24, 2018]