Canopy Growth Corp (WEED)

[Wo]

Scenario No. 2: A fizzle
https://www.fool.com/investing/2018/06/06/a-huge-vote-on-canadian-recreational-marijuana-sch.aspx

Hi, I was doing some Domestic work ( Laundry) , so my post was done in a bit of a distracted haste. Thanks for the reply. The article does a much better job of outlining the real possible scenario's come Thursday Close/Fridays Open. I prefer scenario # 1

Scenario No. 1: A big bounce
The conventional wisdom is that the Canadian Senate will easily pass bill C-45 and that marijuana stocks will enjoy a nice bounce as a result. Let's look at both components of this theory.

, but Im reserving an expectation for #2.

Scenario No. 2: A fizzle
Another potential scenario, however, is that the Senate votes in favor of C-45 and marijuana stocks barely budge, or even dip a little. Why might this happen? I think there are three main reasons.

First, the anticipation of the legalization of recreational marijuana is already largely factored into stock prices. Canopy Growth, Aurora Cannabis, and Aphria trade at astronomic multiples of their current sales. Even solid prospects for increased medical marijuana revenue in Canada don't come close to justifying these stocks' valuations.

Second, several amendments have been added to bill C-45 that make it less attractive to the marijuana industry than it might have been. One of these amendments prohibits promotional items branded by marijuana businesses, including hats and T-shirts. That might not seem like a big deal, but banning swag could hurt sales of recreational marijuana.

Third, investors sometimes "buy the rumor and sell the news." We've already seen Canopy Growth and Aphria post nice gains over the last month. Aurora hasn't moved much higher, but that's probably due mainly to its acquisition of MedReleaf. Some recent buyers might decide to take some profits off the table if the Senate passes C-45. If there's enough selling pressure, it will cause Canadian marijuana stocks to decline at least a little.

On another note, Im elated at the updates that the senate has approved the recommendations of ministers Philpott and Petitpas.

As a result, committee chair Lillian Dyck says Indigenous senators have achieved more than they'd hoped to do with the amendment from Conservative Sen. Dennis Patterson, who says he has decided -- with "hesitation" -- to abandon it.

https://www.bnnbloomberg.ca/feds-avert-possible-marijuana-bill-delay-with-promises-to-aboriginal-senators-1.1088831
Very proud of the government ministers to have gone above and beyond the possible amendments so far that the amendments were no longer needed. Delay Averted. Governing is not easy, so when representatives step up and make it simple, its a great relief. With that in mind, id like to see the bill passed because there are several other issues happening at the federal level that require their fair share of attention. Lets get this passed, and get on with it.