Cannabis stocks got off to a hit start to the week following a CNBC story published over the weekend suggesting that a Joe Biden victory in the November election could open the door for the decriminalization of adult-use marijuana, potential rescheduling and other federal cannabis legislation.
Opposing Forces: On Tuesday, Cantor Fitzgerald analyst Pablo Zuanic said Canadian legal producers are dealing with two opposing forces in the market at the moment. First, they’re battling ongoing cannabis price deflation that is eating into margins. At the same time, Zuanic said he anticipates demand growth will accelerate and the U.S. election could have “positive collateral benefits” for Canadian LPs.
“Canadian corporates have been able to export their know-how in industries such as mining and forestry, and the assumption is that some of the LPs will do the same in cannabis, so this should add further upside,” Zuanic wrote in a note.
Related Link: Cannabis Analyst Talks…
Original Author Link click here to read complete story..