Pot stocks soar as Colorado opens for business
Other states are closely watching the impact of new marijuana law, and some may follow suit if all goes well.
By Burke Speaker
Colorado's new law allowing the recreational use and sale of marijuana began Wednesday and amid the anticipation has come a boom in marijuana stocks.
"The first-in-the-nation law was greeted with long lines at retailers and a lot of 'Rocky Mountain High' jokes. But beyond the buzz, the measure represented the institution of a major new public policy in America -- one that opponents fear will turn the state into a dangerous land of debauchery and that backers hope sets a nationwide precedent.
If Colorado is able to successfully legalize marijuana without causing a social backlash, the tourism, tax and other considerations are likely to compel several other states to quickly follow suit."
Already, Alaska will likely put the issue in front of voters within the year, and supporters say they expect Oregon to see a vote after that. By 2016, advocates hope to see measures on the ballot in Arizona, California, Maine, Massachusetts, Montana and Nevada, according to The Post. After that there are rumblings of similar ballot measures in six other states.
The big winner -- states collecting taxes. Colorado is expected to reap some $200 million this year in marijuana taxes, with much of that going to education.
If other states put up similar ballots for voters who hear that Colorado didn't fall into ruin -- and instead making a windfall -- the measures may even force a federal review of marijuana laws.
For now, marijuana stocks are hoping to ride the wave of popularity all the way to the bank.
CBIS, for instance, was up more than 40% as of this writing. As HotStocked noted earlier:
"Traded volume exploded and 28 million share changed hands throughout the session which is seven times more than the average for the company. This drastic change in investors sentiment came just days after CBIS dropped to a new 52-week low of just $0.028 per share."
Of note, MJNA and CBIS are primarily involved on the medical side of marijuana, not recreational; still, traders and investors seem to believe in a larger potential out of what's happening in Colorado.
More From InvestorPlace
- $200M in taxes
- time and money savings for police, courts, and jails to house smokers and dealers
- get the stuff off the streets and into shops owned/operated by law abiding Americans rather than going to gangs and cartels
I've never smoked a thing in my life. I saw what smoking cigs did to my grandma so it never was something that looked appealing to me. Frankly that was her choice though no matter how stupid it may have been. It is not the government's job to protect us from ourselves. And seriously drug laws work about as well as gun laws do which is not at all. Like I said, never smoked anything in my life (cigs or drugs), but ever since high school I could relatively quickly get pot if I wanted it. It is like any other vice (drinking, gambling, etc). You shouldn't legislate your idea of ethics because it doesn't work. Better to be legal and managed in the open responsibly than illegal where the thugs of the world (gangs, mobs, etc) can get rich.
While teaching kids: 'Don't Do DRUGS'.
Haha, taxes going to schools! That's what they said about the lottery in Florida. It's all a joke just for the state to get more from you.
I can't wait to see what types of people you collect up there. This will be awesome.
If we step back and observe, there is no aspect of our current structure geared to actually support an economy, it supports takers. The Federal Reserve and US Treasury work to create debt, the banks and Wall Street support markets. The markets support non-enterprise business platforms that support degrees administrative and executive personnel, none of whom actually "do" anything (paper & button pressing are not jobs, they are functions), at best they just delegate. They support deadbeats, lawyers, accountants, politicians, administrators and psychopaths.
The encouraging part is-- we are beginning to define the problem and the problem people. It will be a much easier task once they are the only ones in this stupid loop and the remaining majority can wipe them off the face of the Earth.
Terrorists deserve nothing better.
"I have had an epiphany from God that weed is God's true gift to mankind", or something like that to make it OK now, but before they saw the profit in it, it was a bad, bad devil's curse..
Typical BS of that FU group.
So stocks are legit, why do banks have a problem with monetary exchanges from marijuana sales . seems that both are federal entities .....
That's a clear sign to stay away from that stock!
Everything in Texas and about Texas is repugnant!
Copyright © 2014 Microsoft. All rights reserved.
These hot movers could rise by double digits in coming months.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.