Tuesday Risk On
Stocks resumed their recent risk on rally with strength in international, emerging, small and micro cap stocks. It is interesting to see strength in the technology sector despite the drubbing in price for micro-blogging site, Twitter. The S&P 500 closed the day nicely with a gain of 1.19% to 1985.
Daily Positive: CannLabs (OTCQB: CANL) opened its Connecticut laboratory today. We see testing as vital to both consumers and regulators as this market continues its transition into a legitimate industry. We are interested to see how the business metrics unfold in the testing marketplace.
Daily Negative: The volume and activity in the sector seemed disproportionate to the activity in the broader markets.
The Las Vegas licensing hearings are being held today, and so far, the process has gone well. Showing that operators are preparing appropriately and that opposition is not as intense as once predicted. It will be interesting to see how this all nets out, as Las Vegas is a merging of all markets in many ways, with tourists coming from all regions. They are the first state to have medical card reciprocity, making it easy for out-of-staters to participate when visiting. This is a tremendous opportunity for investors.
Additionally, the cannabis industry is being represented by a panel at what is usually a very traditional financial conference. Emily Paxhia of Poseidon Asset Management, Troy Dayton of The ArcView Group and Josh Rosen of 4Front Advisors will be addressing family offices, hedge funds and private equity investors at the Opal Family Office Private Wealth West Conference. It is great to see attention being paid to the industry and it is encouraging to see the interest from these broader based investors. We are noting that investors outside of the sector are viewing cannabis as a new investable asset class.