Wednesday was a historic day for the marijuana industry with the unveiling of the highly-anticipated Senate bill that would federally legalize cannabis.
Details of the draft bill, the Cannabis Administration and Opportunity Act, were released early morning sparking excitement and speculation. Around mid-day, the bill's sponsors Senate Majority Leader Chuck Schumer (D-N.Y.) and Sens. Cory Booker (D-N.J.) and Ron Wyden (D-Ore.) held a press conference.
While the impact was expected to be felt on cannabis stocks, surprisingly marijuana stocks fell.
Cantor Fitzgerald’s Pablo Zuanic offered several possible explanations for this reaction in his latest analyst note, while also emphasizing that investors should “make use of yesterday’s weakness.” There's an upside, claims Zuanic who recognized that Wednesday was a historic day for the industry despite the decline of cannabis stocks.
For starters, the Canadian Marijuana Index fell 5.3% for the day, the US Marijuana Index dropped 2.8%, the AdvisorShares Trust AdvisorShares Pure US Cannabis ETF (ARCA: MSOS) lost 3.5%, and AdvisorShares Pure Cannabis ETF (ARCA: YOLO) was …