Marijuana stocks rise on optimism California, Florida votes will further legitimize market – CNBC
Shares of stocks considered by Wall Street to be pot plays rose Tuesday on optimism referendums to legalize marijuana for recreational use in California and medical purposes in Florida will be approved.
Seven other states have similar measures on the ballot.
Shares of GW Pharmaceuticals, a developer of cannabis-based drugs, and Scotts Miracle-Gro, with its hydroponics businesses, rose about 1 percent each Tuesday. Hydroponics is the process of growing plants in liquids without the use of soil and is a popular method for cultivating marijuana.
The Los Angeles Times last week cited a statewide USC Dornsife/Los Angeles Times poll, which showed 58 percent of likely voters support Proposition 64, the measure to legalize marijuana for recreational use in California. The Polling Institute at Saint Leo University’s October poll revealed more than 70 percent of Floridians supported Amendment 2, which allows the medical use of marijuana.
“Various states with large populations are voting on marijuana legislation on Tuesday, Nov. 8, including California for recreational use and Florida for medical use. Polls point to favorable votes both in California and Florida,” JPMorgan analyst Jeffrey Zekauskas wrote in a note to clients Monday.
Zekauskas cited how eight states will vote to legalize marijuana this month for either recreational or medical purposes. Twenty-five states have already legalized medical marijuana use and 20 states have decriminalized possession of small amounts of the drug, according to the analyst.
JPMorgan reiterated its overweight rating and raised its price target on Scotts Miracle-Gro on Monday due to potential of its hydroponics business. The bank turned heads in August when it upgraded the fertilizer maker due to its marijuana-related operations. But more Wall Street banks have since trumpeted marijuana as a legitimate investment opportunity.
“Cannabis prohibition has been in