GW Pharma: Election A Boon To Medical Marijuana – Seeking Alpha
The stock price of GW Pharmaceuticals (NASDAQ:GWPH) took another surge upwards as a result of election day events in the USA.
The one month chart below shows this clearly enough.
The one year return on the company’s stock price equals over 60%. Its year-to-date return is 91%.
The spike was probably due mainly to the various ballot initiatives that got passed. Trump’s own position on marijuana is, like everything else with him, hard to read. A bullish election factor was also the general boost given to pharmaceutical stocks based on fears that Hillary Clinton would clamp down on what many see as price-gouging by Big Pharma.
The post-election surge in price is likely to be a temporary event. More important will be the upcoming test results for GW Pharma.
Ballot initiatives passed were very favorable for medical marijuana. Approval in Florida with its large and generally aging population was the most important. North Dakota and Arkansas approved the use of medical marijuana for certain conditions, while Montana extended its present approvals.
Recreational cannabis was approved in California, Maine and Nevada, but rejected in Arizona. California alone will probably double the size of the recreational business in the USA. Nevada could well become a marijuana tourist destination.
As for Trump, as with much else his comments have been all over the place on marijuana. It seems though that he is personally in favor of medical marijuana but opposed to recreational use. He is likely to leave the matter more in State hands rather than at the Federal level. As President Obama said in a recent interview, “Federal cannabis prohibition is not going to be tenable.”
For individual states, cannabis can of course be a welcome income generator. It is estimated that the state of California