Weed Week: Could pot stocks benefit if Democrats take the Senate?
Health & Biotech
Health & Biotech
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Australia’s cannabis market had some important regulatory developments of its own at the end of last year.
But on a global level, all eyes have been on the huge US market as investors assess the fallout from November’s Presidential election.
Among other things, four more US states voted to legalise recreational cannabis use.
And prior to the election, Vice President-elect Kamala Harris went on the record to say that marijuana would be decriminalised at the federal level under a Biden administration.
The Democrat-controlled House of Representatives has already passed the MORE (Marijuana Opportunity Reinvestment and Expungement) Act, but it stood to face a difficult challenge to become law if Republicans still controlled the Senate.
Which made the two run-off races in the state of Georgia (held yesterday) extra crucial, with Republicans holding a slim 50-48 Senate majority.
A 50-50 Senate would give the Democrats a technical majority, given Harris holds a deciding vote.
And by the close of trade yesterday in Australia, Democrat challenger Raphael Warnock had called a victory in his Georgia Senate race.
At time of print, the other race — between Jon Ossof (D) and incumbent Senator David Perdue was deemed too close to call.
With the second race on a knife-edge, the outcome will be worth watching for cannabis investors.
While a Democrat advantage in the Senate won’t directly affect Australian pot stocks, it will mark another important development in the run of positive regulatory momentum that took place into the end of 2020.
And speaking with Stockhead in December, pro cannabis investor Mark Bernberg said US legalisation will be the main game for cannabis investors over the next 12-18 months.
Turning to the local market, ASX cannabis stocks have made a steady if unspectacular start to 2021.
Of the cohort of cannabis (and cannabis-adjacent) companies tracked by Stockhead, 10 posted a gain over the past week while 11 were unchanged, and 15 lost ground.
Below is a summary of the latest weekly, monthly and annual price performance for ASX-listed cannabis stocks:
Scroll or swipe to reveal table. Click headings to sort.