Cannabis stocks jump on hopes that Canadian move will curb black-market sales

Cannabis stocks rallied out of the gate Friday, after a report that the Canadian province of Ontario will open up the market for retailers with plans to issue about 20 new store approvals starting in April 2020.

“This is certainly better than the status quo,” said MKM analyst Bill Kirk. “In the fight to take share from the illicit market , access to stores has been a major issue.” “Further, Canopy teased an expectation for 40 Ontario stores per month beginning in January,” said Kirk. “If the details of 20 store/month beginning in April hold true, Ontario would have 62% fewer stores by year-end 2020 than Canopy had expected . All else being equal, we would recommend selling into any strength this news may produce.”Investors thought otherwise, sending the stock of market leader Canopy CGC, -2.13% WEED, -2.05% up about 4%. Aurora Cannabis ACB, +1.15% ACB, +0.87% rose 3.

Still fun to watch countries that do everything to reduce cigarette smoking expand cannabis smoking. Paradox of the ridicule.

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