Connect with us

Market News

Canadian Marijuana Stocks Are Getting High Again

Published

on

Canadian marijuana stocks are blazing again, fueled by speculation that the regional government of Quebec will rollout plans for recreational pot. Investors have quickly seized the opportunity by focusing on local producers primed to meet what’s expected to be insatiable demand for the green plant.

// -- Discuss and ask questions in our community on Workplace.

Quebec Readies Cannabis Legalization Bill

Quebec is planning to table its bill on cannabis legalization as early as Wednesday, according to sources familiar with the matter. The bill will answer important questions about marijuana consumption in Canada’s only French-majority province, including the legal age limit, how it will be distributed and the rules for drivers. Early reports suggest the province will adopt a ‘zero tolerance’ approach to driving while high.

The province says that cannabis legalization is a federal government initiative, and that it is up to Ottawa to cover expenses related to prevention and health costs.

“The legalization that the federal government is doing, we’ve got to have the money that it’s going to cost the provinces to give a lot of services to the people, especially the youth,” Quebec’s Public Health Minister Lucie Charlebois said Monday.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Pot-Craze Reaches New Highs

Marijuana stocks rose across the board Monday, with Aurora Cannabis (ACBFF) adding nearly 28% en route to new record highs. The stock has now gained more than 90% this month on rising revenue and a strong position in Quebec’s local cannabis market. The company’s provincial pot-growing facility recently received a cultivation license, giving it a strong foothold in French-speaking Canada.

Other solid performers on Monday included OrganiGram Holdings (OGRMF), Maricann Group (MRRCF) and Cronos Group (MJN), which added between 12% and 15%.

Most major Canadian marijuana stocks can be bought and sold on Over the Counter (OTC) markets.

Canada’s Marijuana Index

After a volatile summer, Canada’s Marijuana Index is catching fire once again, with prices fast approaching record levels. On Monday, the index shot up 9.5% to close at $351.74. That was also the highest since April.

Canada’s Marijuana Index has 18 constituents with a combined market cap of $8.07 billion.

By comparison, the United States Marijuana Index has 17 companies listed with a total value of $4.98 billion.

Pot Frenzy Likely to Grow

The euphoria surrounding Canadian marijuana stocks will likely to grow as the nation awaits the planned legalization of recreational weed on July 1. Companies that identify with recreational cannabis are surging, with recent gains far outpacing counterparts in the medical pot industry.

Various estimates show Canada will be home to a multi-billion-dollar pot industry in a matter of years. According to Deloitte, pot legalization will generate $22.6 billion annually for the industry, outpacing the total annual spend on alcohol (and Canadians love their beer).

Ontario, which is Canada’s most populous province and main economic hub, is considering a price of $10/gram for recreational pot. The province alone could generate an additional $100 million in annual gross tax revenue from the green plant. Policymakers say they would like to maintain some form of price uniformity across the country, suggesting that closer collaboration with the other provinces is in the works.

According to Canada’s parliamentary budget officer, the average price of weed in Ontario is $8.64 a gram.

In September, the government of New Brunswick reached a deal with two suppliers for about 9,000 kilograms of weed in the first year of legalization. That deal alone is expected to generate between $80 million and $100 million in total retail revenue.

If we use Colorado as a case study, Ontario should easily generate much more than the $100 million target. The U.S. state, which has less than half the population of Ontario, raked in $102 million U.S. in tax revenues from pot in 2014-15. Revenue more than doubled to $223 million in 2016-2017 based on a 15% sales tax.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Market News

Bitcoin Proxy Shares Rise Following Launch of CBOE Futures Contract

Published

on

Bitcoin record

Equities with indirect exposure to bitcoin have been on a tear as of late, as the cryptocurrency euphoria spread beyond the digital asset class to include some notable players on Wall Street.

// -- Discuss and ask questions in our community on Workplace.

Buying Spree Hits U.S. Stocks

Shares of Riot Blockchain (RIOT), Overstock.com (OSTK) and MGT Capital Investments (MGTI) surged at the start of the week as investors rejoiced in the official launch of bitcoin futures on the CBOE exchange. Riot Blockchain rose by as much as 33%, while MGT added more than 20%. Meanwhile, Overstock rose by as much as 34% between Friday and Tuesday’s intraday high before reversing some of those gains later in the day.

All three companies offer exposure to the world of cryptocurrency, with Riot investing heavily in blockchain, the technology that underpins bitcoin and other digital currencies.

MGT is a cyber security company headed by bitcoin bull John McAfee. The cyber sec pioneer is confident bitcoin will reach $1 million by 2020. McAfee’s latest bullish bet came just a few weeks ago via Twitter:

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong.”

Others have speculated that McAfee was referred to the combined value of bitcoin and all its forks, given his growing support for the alternative bitcoin cash system.

Meanwhile, Overstock has made strong inroads in the blockchain community by creating tZero, the forthcoming Alternative Trading System (ATS) that is expected to raise between $200 million and $500 million via initial coin offering. Overstock’s current business model is no slouch, either, with its billion-dollar-plus annual revenue.

Stocks with exposure to bitcoin provide investors with a more reliable means capitalize on the blockchain revolution. The bitcoin market is largely unregulated, which makes certain segments of Wall Street nervous. The arrival of bitcoin futures, and perhaps ETFs in the near future, is expected to quell those fears.

Some analysts speculated that investors would lose interest in bitcoin proxy stocks once futures became available. So far, the complete opposite has occurred.

The combined value of all cryptocurrencies in circulation approached half a trillion dollars on Tuesday, as bitcoin’s rally extended to leading altcoins such as Ethereum and Litecoin. Both digital currencies reached all-time highs in the latest sign the crypto buying frenzy was jus getting started. Ethereum and Litecoin are the world’s second and fourth largest cryptocurrencies by market cap.

Bitcoin accounts for more than half the total market cap and roughly 50% of daily trade volumes. It was last seen hovering well north of $17,000, which is considerably below last week’s peak of around $19,500.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Market News

Companies are Lining Up to Launch Bitcoin ETF, According to SEC

Published

on

Two companies have stepped forward with applications to the U.S. Securities and Exchange Commission (SEC) to launch a bitcoin exchange-traded fund (ETF), according to a recent report from CCN. The renewed push toward ETFs comes as more institutional investors look to enter the burgeoning cryptocurrency market.

// -- Discuss and ask questions in our community on Workplace.

Bitcoin ETF

According to the SEC’s public filing system, regulators received new applications for the REX Bitcoin Strategy ETF and Rex Short Bitcoin Strategy ETF, as well as the VanEck Vectors Bitcoin Strategy ETF.

REX, which is based in Connecticut, filed its application on Dec. 8. The New York-based VanEck filed its application on Dec. 11 in a sign that more market players were looking to capitalize on a booming market.

VanEck had previously filed to create a bitcoin ETF before the SEC struck down a similar proposal. That being said, VanEck will reportedly provide the pricing data for an upcoming bitcoin futures contract to be made available via the Nasdaq exchange. Unlike the CBOE and CME futures contract, the Nasdaq version will pull pricing information from 50 sources provided by VanEck.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

A bitcoin ETF would make the digital currency widely available to millions of investors through common retirement accounts, such as IRAs and 401(k)s.

The highly coveted but elusive bitcoin ETF has been tried before by Tyler and Cameron Winklevoss, who failed to earn SEC approval earlier this year. Regulators disapproved the ETF on several grounds, including lack of regulation and a general inability to enter necessary surveillance-sharing agreements.

The SEC’s ruling on the Winklevoss ETF puts considerable doubt over whether the new products will ever get approved. Analysts say that ETFs could spark an even bigger rally for an asset class that has already added hundreds of billions of dollars to its value this year alone.

Bitcoin Trade Volumes

Bitcoin’s market cap surged past $290 billion on Monday as institutional money flowed into the asset class following the launch of the CBOE futures contract. Trade volumes over the past 24 hours reached $12.6 billion, according to CoinMarketCap.

Bitcoin-dollar transactions on Bitfinex accounted for 11.6% of the daily transaction. South Kore’as Bithumb accounted for nearly 11% of the daily turnover. Coinbase’s GDAX also saw 6.5% of the daily turnover, data showed.

At press time, BTC/USD was trading north of $17,100. Prices skyrocketed past $19,000 last week.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Market News

“Buy Bitcoin” Is Lighting Up Google as Cryptocurrency Outshines Gold

Published

on

The Google search engine has been turning up a lot of bitcoin as of late, a sign of growing interest in the cryptocurrency. In fact, searches for how to buy bitcoin have far outpaced similar searches about gold, according to a recent report.

// -- Discuss and ask questions in our community on Workplace.

Bitcoin Search Results

According to The Telegraph, the search term “buy bitcoin” first outstripped “buy gold” on Google in May. Its popularity has since grown manifold. In fact, “buy bitcoin” is now three times more popular than the search term “buy gold” during the 2008-09 financial crisis.

The financial crisis triggered the most protracted recession since the 1930s, making gold the rational choice for risk-averse investors. Gold prices would later surge to record highs, eventually maxing out above $1,900 a troy ounce in 2011.

Bitcoin is often referred to as digital gold for its perceived haven-like status. Although many would disagree with that assertion, bitcoin and gold share some important similarities. Both are finite resources and reflect a general distrust in governments and traditional financial institutions. Apparently, bitcoin has also been used to shield against growing economic, financial and geopolitical risks, although we don’t have enough data to draw definitive conclusions about its risk-hedging capability.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Bitcoin set another milestone on Thursday by smashing through $14,000. The world’s foremost digital currency has added a jaw-dropping 42% over the past five days, which is equivalent to more than $4,000.

Google search trends tell us that interest in the digital currency skyrocketed once more after prices rose above $10,000 for the first time. As bitcoin crossed the five-digit mark, Google search interest for the coin rose from 26 to 100. According to Google, these numbers represent “search interest relative to the highest point on the chart for the given region and time.” As you might expect, 100 is considered peak popularity for a search term.

Demand Rising

Google search results are a proxy for underlying demand in the cryptocurrency market. Higher search density suggest greater buyer interest and trading volumes for bitcoin. A simple look at the latest trade volume data corroborates this point.

Bitcoin’s 24-hour trading volumes surpassed $13.2 billion on Thursday, according to CoinMarketCap. That’s more than double the previous day’s volumes. Considering that BTC/USD has more than doubled since October, it’s reasonable to assume that higher search results have been associated with increased trading activity.

South Korea’s Bithumb is turning over the most bitcoin trades at the moment. The exchange is responsible for 10% of daily transactions, which is equivalent to roughly $1.3 billion. Bitfinex is a close second at around 9.4% of the total market.

With volume like this, it’s little wonder why bitcoin controls nearly 60% of the cryptocurrency market. Its growth has also triggered a buying frenzy in other cryptocurrencies, commonly referred to as altcoins.

Growing demand for cryptocurrency is also reflected in another key metric – the number of account registrations. For that, we look not further than Coinbase, which is America’s largest cryptocurrency exchange. The platform recently reported 13.3 million accounts, including 100,000 new signups over Thanksgiving weekend.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending