Weed stocks: Michigan legalizes marijuana recreational use

Marijuana
for sale at the MedMen store in West Hollywood,
California.
Thomson
Reuters

Weed stocks were gaining ground early Wednesday after Michigan
became the 10th US state to legalize marijuana for
recreational use. Voters rejected
a similar measure in North Dakota, while the legalization for
medical use passed in both Utah and Missouri.

Following the results, cannabis producers were rising across the
board. Here’s a look at the premarket scoreboard at 7:15 a.m. ET
on Wednesday:

Cannabis stocks have captured the attention of both Main Street
and Wall Street this year. In August, Constellation Brands, the
maker of Corona beer and Svedka vodka, announced a
$4 billion investment in Canopy Growth. That led to a “green
rush” into the sector, with market values of the biggest names
more than doubling.

Last month,
Canada became the second country to legalize marijuana for
recreational use,
putting a top in shares. But the future remains bright for
the sector.

“We believe that the legalization in Canada offers a road map to
invest in the companies that will form the basis of the legal
cannabis industry in the coming years,” Jon Trauben, a managing
partner at the cannabis-focused Altitude Investment Management,
said.