Today, investors in various cannabis stocks are seeing a lot of green. Indeed, shares of major players including Aurora Cannabis (NASDAQ:ACB), Canopy Growth (NASDAQ:CGC), Tilray (NASDAQ:TLRY) and Sundial Growers (NASDAQ:SNDL) are all up substantially. Each of these companies has moved higher by more than 3%.
Given that today is a relatively flat day for the overall market, these moves are considerable. Investors who have banked on a green rush to cannabis stocks have been somewhat disappointed. Indeed, 2021 has not provided a relatively bullish environment for these hyper-growth stocks. Shares of each of these cannabis stocks are down markedly from their highs.
However, today, bullish sentiment is starting to creep back into this sector. Investors looking at cannabis stocks as potential winners in a Democrat-controlled House and Senate environment appear to be emboldened.
Let’s dive into what’s behind today’s sector-wide move in these marijuana players.
Cannabis Stocks Higher on Speculative Sector-Specific Interest
Today, it appears there are two key catalysts driving cannabis stocks higher.
The first reason for this comes out of New York, where cannabis optimists are hopeful the rollout of recreational pot is once again back on track. New Gov. Kathy Hochul has said that the rollout will be a top priority. Although lawmakers in the state legalized recreational use earlier this year, New York must go through several bureaucratic processes to get the business truly off the ground.
Considering this, former Canopy Growth CEO Bruce Linton discussed in an interview today what New York legalization means for the cannabis industry. Specifically, Linton called out the fact that New York happens to be the state Senate Majority Leader Chuck Schumer represents as a key driver of potential federal legalization. Additionally, the size of the New York cannabis market is massive. As more high-population areas in the U.S. decriminalize or legalize recreational cannabis use, the outlook for this sector brightens.
The second item to note for cannabis investors ties into this, with the upcoming public debut of PharmaCann. This New York-focused cannabis company announced earlier this month that it confidentially filed for an IPO. The exact timing of this IPO and price range sought is unclear. However, rumors are that the company will seek a valuation of $1 billion or more.
This is certainly a potential boon for valuations across the sector. Additionally, the company’s 10 licenses in New York has brought more attention to the recent New York legalization of recreational cannabis.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.