Coral Gables, FL / ACCESSWIRE / November 6, 2014 / Midterm elections have come to a close and Americans have weighed in on some of the most critical decisions to be made; In particular we're talking about the vote for marijuana legalization. Several states including Alaska, Oregon and Washington, D.C. (despite Republican pushback) legalized marijuana for recreational use. Surprisingly Florida voters fell short of pushing through the vote for medical marijuana use not because of any incumbent driven slander campaign but for the simple fact that voters just didn't come out and the ballot measure didn't reach the 60% mark that was required.
Marijuana stocks have had their fair share of consolidation over the last few months as uncertainty on results of the pending election began to loom. Recently as popular opinion has continued to favor its legalization, a Republican senate seems to have had a backlash on marijuana stocks. Several of the more actively traded MJ companies were in the top 20 most traded in the OTC during Wednesday's session but not for the reasons we'd like to see. Medical Marijuana, Inc (OTCQB:MJNA) saw a correction in stock price after having been on a near 2 week move that took the stock from $0.105 to a high of $0.21. MJNA has been focusing its time on the HempMeds brand and the company's CBD (cannabidiol) hemp oil products. Even though MJNA's stock price remains 48% higher than it was back in late October, Wednesday's market session saw a decline in price by more than 15%.
Creative Edge Nutrition (OTCQB:FITX) also saw a red day. It looked like many MJ stocks would be back on track and move toward higher levels since the reversal back in October but once again midterm election results and a conservative Republican senate urged investors. Creative Edge fell by almost 25% on Wednesday. The Company has come under fire as of late with media outlets slamming the Creative. In a shareholder letter, the Company defended its position but to that end, the stock price suffered and now sits at its lowest price the stock has seen since January.
Even Canavest Corp (OTCQB:CANV) fell victim to the midterm results. CANV has been on an uptrend since late September having moved up from about $2 to highs of $3.84 just a few das ago. As the results of midterm elections began to funnel in, Wednesday offered little gains for this stock. CANV saw a decline of nearly 20% by the close with even lower prices during the session. But despite these shorter term barriers in the market, Cannavest remains confident in its approach to expand on its global reach. In a recent press release, President and CEO Michael Mona, Jr. stated, "Over the last year, we have further established our supply chain relationships in Europe and have committed to additional inventory and processing capability. We have been able to pass on these economies of scale to our customers, which has resulted in a broader, more diverse customer base."
In lieu of this most recent trend, investors still seem bullish on the investment potential of the industry. A Forbes article published this week (http://www.forbes.com/sites/markfidelman/2014/11/04/why-legalizing-medical-marijuana-will-make-investors-extremely-wealthy/) explains that nearly two thirds of analysts favor the investment opportunity within this industry. Furthermore as more states begin to legalize marijuana for either recreational or medical use, Forbes contributor Mark Fidelman states that the market for medical marijuana will reach a critical mass at which point he predicts we will see political reform and enable easier access to the drug.
The marijuana space continues to interest investors as millions of dollars are exchanged every day in the stock market. Some are comparing it to the 1930's era when savvy market participants loaded up on stock that could potentially generate increased proceeds in anticipation to the end of prohibition. For the Marijuana industry there will certainly be growing pains and the recent implementation of a Republican majority does have many on the fence as to what this means for the industry as a whole. Through the entire process, the facts remain that the American public supports legalization efforts and continues to push for the continued passage of new laws nationwide.
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