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Afternoon Note

Getting Smoked

By Charles Payne, CEO & Principal Analyst
4/15/2019 1:29 PM
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While the market is listing today, weighed down by big names Goldman Sachs (GS) and Boeing (BA), there is real damage in the marijuana sector.

Weed stocks are getting smoked, and now some are wondering if this is crypto all over again.  The marijuana ETF (MJ) is down 12.7% since March 19th.  There is no doubt about the potential, but the industry is still hampered by massive fragmentation and the inability to do intrastate banking.  But mostly the hype is fading. 

I don’t think this is going to a crypto-like implosion, but failure to win or gain statewide approval in New York and New Jersey, coupled with recent revenue miss for Cronos Group (CRON), has been a buzzkill for the industry. 

As for the broad market, I must admit, I’m surprised the major indices aren’t lower considering the length and magnitude of the rally.   Perhaps this small decline is a bigger buy signal than if we saw the market slightly higher. 


Comments
WOULD YOU SAY THEY ARE GOING TO POT THE LUNATIC LIBERALS NEED TO SMOKE MORE SO THEY CAN BLOW THE REMAINING BRAINS OUT

ERNEST REMUS on 4/15/2019 2:43:26 PM
Love the title!! LOL. "Pass the doobie to the left biddy bum bum boom..." On a serious note, I have been following the marijuana craze. Places like Seeking Alpha has many folks proclaiming riches forever, probably will not end well for a lot of folks. Thank you for the commentaries.

Joel M on 4/15/2019 2:46:09 PM
 

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