Cannabis-Related Stocks Take A Hit After AG Jeff Sessions Announces Plans To Go After Legal Marijuana

in #cannabis4 years ago

Just this week,...

AG Jeff Sessions rescinded previous guidances that had permitted states to legalize cannabis with little-to-no federal interference in the matter. And a number of states, like Colorado and Washington, have legalized cannabis for either recreational and/or medicinal purposes.

You can now find thousands of dispensaries in different states around the US, despite it still being a federally prohibited substance.

Sessions wants federal prosecutors to decide on what to do and for law enforcement officers etc, to spend their time and resources once again cracking down on those who use or sell cannabis. And I cannot think of a worse idea for what those men and women should be spending their time on. But I can think of a number of crimes I would much rather law enforcement be focusing on than trying to police a plant.

Since Sessions decided to make that announcement, cannabis-related stocks have taken a dive, with some of them seen to be falling as much as 35 percent or more.

stockscanna.jpg

Terra Tech is known as the largest US pot stock and it's been down about 35 percent since the news came out. Whereas Canopy Growth Corp is the largest Canadian cannabis stock and it's been down about 9.9 percent.

Despite the downturn though, many don't think that the new announcement is going to result in any meaningful change in the way of doing things.

However, industry analysts are suggesting that this recent announce by Sessions isn't going to ease the nerves of investors who up until now might have been unsure about getting invested in this market industry. With the worry about whether or not the federal government can crack down at any moment, it's no wonder why that would scare some investors away.

Aside from that concern, there are other challenges as well that come along with investing or working in this market space, such as trying to find financing, insurance, banking help etc. Many banks are unwilling to deal with entrepreneurs, lawyers, investors etc, who are involved in the cannabis industry because of the federal war against the plant that is still going on and has been for decades.

At the moment, many cannabis advocates aren't taking the threat too seriously.

This is because a great deal of people have demonstrated support for legalization for either medicinal or recreational purposes and they hope that prosecutors and law enforcement are going to focus on bigger threats.

Prohibition still doesn't work...

One area in the US that's referred to as the marijuana capital of the country is Humboldt, California.

Here you can find many different growers, some who've been doing it for many decades while many others who've only recently gotten on-board since the switch to legalization. Police in the region have used incredible amounts of resources trying to crackdown on these growers and according to their own statements, while they are busy closing one or two of those growers, there are dozens of other ones that are popping up at the same time. It's like playing whack-a-mole, and they'll never be able to keep up.

You can see the same thing with dispensaries, who after being closed are able to open up within just a few hours or the next day, trying to continue with business as usual. What else might have been accomplished with the more than $1 Trillion that has been spent on the war on drugs ? And despite all of that effort, the drugs are still winning and it's the American people who've lost and continue to lose; so long as lawmakers and enforcers bother themselves with matters that shouldn't concern them.

Pics:
via consumerreports.org
via tumblr / the-anarcho-raver
via google finance
Tumblr via EndTheDrugWar

Sources:
https://www.vox.com/policy-and-politics/2018/1/4/16849866/marijuana-legalization-trump-sessions-cole-memo
https://www.vice.com/en_us/article/43qnpn/even-republicans-hate-jeff-sessionss-new-weed-policy
https://finance.yahoo.com/news/heres-one-industry-trump-harming-194437152.html
https://finance.yahoo.com/news/marijuana-stocks-getting-slammed-reports-154718568.html
https://www.theglobeandmail.com/globe-investor/investment-ideas/marijuana-analysts-arent-too-worried-about-the-attorney-generals-order-just-yet/article37505937/
https://www.rollingstone.com/politics/news/why-america-cant-quit-the-drug-war-20160505
https://www.forbes.com/sites/artcarden/2012/04/19/lets-be-blunt-its-time-to-end-the-drug-war/#6794ee14ea35

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Beuatiful post ..

You are very fantastic in making post, I am proud like you, you are very genius in making post, your post is very good and extraordinary.

Well said. Our government is being stupid for following a trend to make marijuana less legal.

@pretzelgirlsandy , The US govt doesn't want to make cannabis legal cause they use it as a form of control and profit. Departments are set up to get funded for fighting "The War on Drugs", losing this funding would put lots of Gov't employees out of work. Plus the gov't wants a piece of the cannabis pie, they need to joggy for position so they control the cannabis trade if made legal. The level of corruption at the Federal Govt level is unprecedented, they have become the biggest mafia-like organization in the world.

Awww @doitvuntarily
This is really appalling, I wonder why all the interest in cannabis, how much of an evil is it perceived to be on its own? I think very little. And how much of an evil is it perceived to be in comparison to other things the government would have invested resources in fighting?
I really like what Cathy Lanier said though.

Then again, don't you think this is some great opportunity to buy some cannabis related stocks? The price is lesser right now isn't it? And it surely would go back to its former high or even go higher. The chances of the government not doing anything harmful about this is very high, this might even lead to a positive turn for cannabis because some forces are rising up to advocate for cannabis, for example, if you haven't, look what Senator Booker is doing, on @erikaharris's post. Join in signing his petition too.

@nevies

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