Penny stock MedMen (OTCMKTS:MMNFF) is up more than 40% in intraday trading today, one of a number of cannabis stocks surging after Democratic senators said they would make marijuana reform a legislative priority.
The surge in price comes on the back of heavy trade volume. MMNFF typically sees 5.6 million shares traded per day; today, that number is already over 47 million and still climbing, an increase of more than 830%. Part of that trading volume may be due to a morning mention on CNBC.
MedMen is a marijuana retailer with a market capitalization of $122 million and operations in six states across the U.S. Currently, 14 states have legalized recreational marijuana and even more have given the go-ahead for medical. Polling indicates a majority of Americans are in favor of legalization, and federal decriminalization would be a huge catalyst not just for MMNFF, but across the sector
Marijuana investors are likely familiar with names such as Aurora Cannabis (NYSE:ACB), Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC) and Cronos (NASDAQ:CRON), all of which were likewise boosted this week on the news out of the Senate. Elsewhere in the sector, Jazz Pharmaceuticals (NASDAQ:JAZZ) announced it would be acquiring GW Pharmaceuticals (NASDAQ:GWPH), a good omen for cannabis bulls: GWPH stock was up more than 45% on the news yesterday.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.