Jul 13, 2021 (Penny Stocks via COMTEX) -- These Penny Stocks Could Be In Focus With Federal Marijuana Legalization Headlines This Week
When it comes to marijuana legalization, whether state level or federal, there are plenty of moving parts. One of the great things about so much happening is that each event is a potential catalyst for marijuana penny stocks . Even the slightest glimmer of hope or smallest hiccup can trigger a big reaction in the stock market. Needless to say, as traders, you should be aware of micro-trends as they develop.
This week we've seen pot stocks pick up a bit after weeks of dormancy. Why are marijuana stocks moving today? Senate Majority Leader Chuck Schumer, Senator Corey Booker of New Jersey, and Senate Finance Committee Chairman Ron Wyden hold a press conference this week. But this isn't just any PR event. According to people close to the situation, the team will reveal a preliminary version of what's expected to be titled the "Cannabis Administration and Opportunity Act."
Further details have yet to be revealed. However, as we've seen so many times in the past, legislative events centered on potential marijuana legalization can evoke an immediate reaction from investors. In this case, the broader sector trend was very bullish on Tuesday. Sector ETFs, including the Advisors Share Pure US Cannabis ETF ( NYSE:MSOS ), the Alternative Harvest ETF ( NYSE:MJ ), and the Amplify Seymour Cannabis ETF ( NYSE:CNBS ), each pushed higher.
Penny Stocks Pop On Proposed Marijuana Legalization
Obviously, it wasn't just marijuana ETFs jumping on this headline. Plenty of cannabis stocks also moved higher. It wasn't a move only enjoyed by cultivation companies. It was a much broader trend. Something to keep in mind is that this isn't the first or likely the last time a bill to federally legalization marijuana has stoked momentum in the market. The fact that there is still no formal law right now clearly shows that. However, with each new step by numerous groups, these three being the latest, progress is the goal.
Will the presentation on July 14th be the one that gets fully approved? In my opinion, the fact that it's already being called "preliminary" tells me that this is the beginning of the road, if anything at all. Needless to say, that could give rise to plenty more action steps to take that could ultimately help the industry grow in the long run. So with some bullishness ahead of Wednesday's press conference, it may not hurt to have some marijuana penny stocks on your list right now.
Penny Stocks To Watch Pending Marijuana Legalization
Organigram Holdings Inc. ( NASDAQ:OGI )
Eastside Distilling Inc. ( NASDAQ:EAST )
Evogene Ltd. ( NASDAQ:EVGN )
Intec Pharma Ltd. ( NASDAQ:NTEC )
Marijuana Penny Stocks To Watch 1. Organigram Holdings Inc. /zigman2/quotes/209289540/lastsale OGI +4.07%
If you're new to trading marijuana penny stocks, you probably have a question if you're looking at OGI stock right now. That question likely has something to do with the fact that Organigram is a Canadian company. So what would U.S. marijuana legalization have to do with it? Directly, probably not all that much right now, assuming no cross-border trade plans would be in place in the near term. However, if you're a trader, you should understand how bigger-picture trends could bode for the industry at large.
This is the case with OGI, as well as countless other marijuana penny stocks on this list. The broader trend is bigger than the sum of its parts. Case in point, the pot stock rallied over 13% on July 13th. It was one of the biggest single-day moves for OGI in over a month. Organigram is a cannabis producer in Canada, and sector momentum wasn't the only thing at play. The company also reported its Q3 figures for its fiscal 2021 year.