Weed Week: Red wave, blue wave… green wave?
Health & Biotech
Health & Biotech
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Following a statement vote for Jacinda Ardern’s Labour Party on October 17, investors are now eagerly awaiting the outcome from New Zealand’s cannabis referendum.
The result is due this week, after indicative polls prior to the event failed to provide any clarity around which way the country was leaning on the topic of legal weed.
At the very least, analysts have speculated a Yes vote could influence regulatory pathways in Australia if a close regional neighbour moves to full cannabis legalisation.
But on the topic of political developments, more are forthcoming when Americans go to the polls next Tuesday in the 59th presidential election.
Concurrently, four US states will vote on whether to legalise recreational cannabis use — Arizona, Montana, New Jersey and South Dakota.
Another state, Mississippi, is set to vote on whether to legalise medical cannabis.
So far, 33 US states have legalised medicinal cannabis while recreational cannabis use is approved in 11 states.
(Oregon is kicking things up a notch, with a pending vote on whether to legalise psilocybin — the psychoactive component of magic mushrooms).
Back in Australia, it’s been a rough week for ASX cannabis stocks ahead of what could be two key political events.
Of the 34 cannabis (and cannabis-adjacent) ASX small caps tracked by Stockhead, only five posted a gain while 23 fell (six were unchanged).
That marks a material cool-off from the previous edition of Weed Week, when 21 stocks posted a gain.
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.
Of the 23 losers, 10 stocks posted a weekly decline over more than 10 per cent.
And of those companies, six released their 4C results for the September quarter within the last two weeks.
Among the big weekly falls was the cannabis-adjacent Dotz Nano (ASX:DTZ), which makes non-toxic markers which can be used to track and trace cannabis products.
However, its 26 per cent fall was a blip in the context of a huge 2020, which has seen the stock climb almost 400 per cent after taking advantage of surging demand for the authentication for PPE (personal protective equipment) products in the wake of COVID-19.