Looking back at the stock markets results in the last two weeks leading up to the new year, one would have thought that cannabis stocks were just starting to move into full swing. In fact, there were some, including myself, who believed that the cannabis sector would be as influential in 2018 as the cryptocurrency sector has been over the last year or so. However, thanks to US Attorney General Jeff Sessions, all of that might now change.
What Happened?
Before we get into any specific numbers, it is important that we talk about why the cannabis sector is taking such a hit on Thursday’s trading session.
Usually, when multiple stocks drop from a specific industry, there are a number of factors playing into the decline, but that’s not the case here. Cannabis stocks plunged significantly today after it was reported that Jeff Sessions, the United States Attorney General, who finds himself making headlines quite a bit, has plans to roll back Obama-era rules involving marijuana. More specifically, Jeff Sessions plans to roll back policies that laid the first stone for states to decriminalize and legalize cannabis.
While this news is bad enough, and it was bound to cause a wave in the cannabis market regardless, the heavy decline in cannabis stocks on Thursday might be primarily because Sessions was so vague and unclear about what federal enforcement efforts will be like in the future, thus causing cannabis businesses to be thrown off, and many declaring their confusion on where this now leaves the legal risk of participating in cannabis-related activities in states that have previously passed cannabis legislation.
Which Companies Have Been Affected?
First reported by the Associated Press, it is not an exaggeration that some of the most popular and the largest cannabis companies in the U.S. plunged on the news. But who took the top spots? Let’s see:
- After the news was reported of the potential reversal of Obama-era marijuana policies, Terra Tech (OTCMKTS:TRTC) was down 35%. As of this writing, the company is trading at $0.29, which puts the stock down $0.13, or a whopping 30.61%.
- Canopy Growth (OTCMKTS:TWMJF) was trading down roughly 9% after the news was first posted, and, as of this writing, is trading at $26.45, or $2.20, or 7.69%.
- Cannabis Science (OTCMKTS:CBIS), a Colorado Spring company that develops cannabinoid-based medicines, also dropped 35% on the news.
- After dropping 13% on the news, Aurora Cannabis (OTCMKTS:ACBFF) is now trading at $10.80, which puts the stock down $0.48, or 4.24%.
Featured Image: twitter
