Pot stocks are on a high as rumors circulate that the federal government will be tabling legislation before 4/20.
Is it the right time to invest your money?
“It’s hard to say if it’s a booming business, just yet.”
CKNW Business Analyst Rob Levy says it’s too early to tell if Marijuana is the next big boom on the stock markets.
“You can think about it like any other industry, how we have gold in Canada, and Canada would be a market where people grow marijuana and U.S. companies that want to distribute it would buy from Canada.”
He says it’s highly speculative at the moment.
“The idea of volatility clustering. When we have these big moves like this, they could show momentum for the next couple days, then it quiets down again as we wait new information and the market begins to price from what we’ve been told.”
But with Canada only being the second country in the world looking to legalize marijuana on a national level, Levy says it could be a potential game changer for the economy.
“There’s potential to access international markets, if Canada can play a role because it would already have established players in the national marijuana market, where they can export the goods they are producing.”
“Especially a lot of the smaller firms, where a lot of the excitement is, you see the huge volatility and the huge move higher in their stock prices.”
Some marijuana stocks saw increases upwards of 10 per cent Monday.
Questions about municipal zoning bylaws
Meanwhile, as the province waits for pot legislation to officially drop, municipalities will most likely still be responsible for zoning and land use.
Vancouver City Councillor Kerry Jang says zoning bylaws will likely be upheld, but the real challenge is enforcement.
“If cities are going to be looking at enforcement through police or inspection staff, the provincial government better provide funding for cities and municipalities to do that. We’ll make it very clear, we’re not going to be accepting any downloading of costs. We will not be raising property taxes to fund those inspections.”
It’s expected for those who want to grow their own marijuana, there’s a cap of four plants per household.
But Jang says how exactly that can be monitored is a challenge and up in the air.
“We want to retain the right under the new legislation to decide where pot shops go and how many in the neighborhood, using our distancing requirements.”
He says if cities are required to monitor inspections, then funding is expected from the provincial government.