What happened
American attitudes surrounding legalized marijuana seem to be swinging strongly in favor. At least that's what a new poll showed. Today, that, and a move from a major player in the sector has cannabis stocks surging. Canada's Tilray (TLRY) was one of those stocks, up 13.9% as of 10:40 a.m. ET.
So what
Results from a Monmouth University poll released this week showed that more than two-thirds of the American public supports legalizing the possession of small amounts of pot for personal use. That includes the majority of people from both sides of the political aisle, with 76% of Democrats and 52% of Republicans signaling their support.
Now what
Canada-based Canopy Growth also announced a move today that intends to take advantage of the large U.S. market. Canopy Growth said it is fast-tracking its move into the U.S. market with investments in multi-state operator Acreage, cannabis edibles brand Wana, and California-based Jetty. That's a similar strategy to what Tilray has done with its ownership of hemp products company Manitoba Harvest, craft brewer SweetWater Brewing, and spirits maker Breckenridge Distillery.
In reporting the results of the Monmouth poll, The Washington Post noted that 25 years ago just 22% of Americans supported legalizing possessing of small amounts of marijuana for personal use. Many states have already acted to legalize recreational cannabis with the issue appearing on the ballots of another five states in next month's elections. Nearly half of all states will have legalized it if those five measures pass.
Tilray has set itself up with distribution infrastructure and products that can create synergies if federal legalization occurs. After another Canadian cannabis company seems to be taking a similar approach, and with the recent poll results, investors feel Tilray is in a good position and are buying in today.
