A victory for the Democratic Party in next month's presidential election would be a game changer for the cannabis industry. Despite their reputation for overexuberance, pot investors are reacting with level heads. Since mid-August, the 10 largest North American pot stocks by market value are up 20%, according to Viridian Capital Advisors. This is relatively muted compared with the 83% rally seen in the three months before the 2016 election. Americans have been buying a lot of pot during the Covid-19 pandemic, which may also explain why stocks are rising. Sales in seven large states where cannabis is legal, tracked by research company Headset, were up 51% from January through September compared with the same period of 2019. Consumers have had more leisure time at home and federal stimulus money to spend. Alcohol companies have enjoyed similar tailwinds. [continues 297 words]
Investment legend has it that the best money in the California gold rush was made selling picks and shovels. Fertilizer and real estate are equivalent bets on the volatile pot boom. Shareholders in cannabis stocks have lost money lately. Companies that "touch the plant"-those that cultivate and sell pot, such as Cronos Group and Green Thumb Industries-have shed up to 50% of their market value over the past six months, as worries grow about profitability in the sector and the resilience of black-market sellers in legalized states like California. Big corporate investors are among the casualties: Tobacco giant Altria MO -0.58% 's 45% stake in Cronos is now worth 10% less than the $1.8 billion the Marlboro maker paid for it last December. [continues 477 words]
It is wise to know where your cannabis comes from. Intoxicated by bullish demand forecasts, pot investors aren't paying nearly enough attention to supply. U.S. states currently decide whether to legalize cannabis within their own borders, even though the drug remains illegal at the federal level. It is a misnomer to speak of a single U.S. pot industry, considering the patchwork of self-contained cannabis economies across the country. Pot can't cross state lines today, even between two states where the drug is allowed. Should federal laws change, high-cost growers and areas with less favorable climates for cannabis growing will be undercut. [continues 518 words]
A chemical found in the khat plant could boost the power of men's sperm, researchers have found. Lab tests by King's College London found treated sperm became fertile faster, and stayed fertile for longer, than untreated sperm. Khat is mild narcotic, producing a high when chewed, but its use has been linked to long-term problems. The study was presented at the European Society of Human Reproduction and Embryology conference in Berlin. The researchers say their findings could lead to products to help couples conceive. [continues 403 words]
