Connect with us

Business

Pot stocks soar on renewed hopes of legalization

Published

on

Pot stocks soar on renewed hopes of legalization

Cannabis industry stocks soared on Tuesday as industry leaders made groovy predictions about their financial prospects and marijuana legalization in Washington.

Shares in Canadian grower Tilray finished up more than 40 percent on Tuesday after Chief executive Brendan Kennedy mused to Bloomberg Television that he now expects more state and possibly a federal legalization within “the next 12 to 18 months.”

Kennedy made the comments while speaking about the company’s partnership with London-based Grow Pharma to distribute its medical cannabis products in the UK, which was also well received by investors.

Canopy Growth saw its share price pop almost 12 percent after CEO David Klein also made optimistic comments about marijuana legalization under Biden, which he said could allow the Canadian company to enter the US cannabis market this year.

“We anticipate that this legislation will include comprehensive reform to ensure restorative justice, protect public health and implement responsible taxation while ending cannabis prohibition,” Klein stated on Tuesday’s earnings call.

Canopy also expects to be profitable by 2022, Klein said.

Even embattled California-based weed retailer MedMen got in on the action after announcing late Monday that it has retained investment bank Moelis & Co. to help the company explore “strategic alternatives.” 

MedMen stock climbed almost 53 percent on Tuesday, hitting 97 cents a share.

“It’s still in deep trouble,” said one trader who deals in cannabis stocks. “But the fact that there’s a market for those says a lot about the perceived [legalization] timeframe here.”

Inside the Beltway, political experts warned that cannabis executives might be getting ahead of themselves despite recent statements from Senate Majority Leader Chuck Schumer and others to push forward sweeping pot legislation this year.

“There aren’t 60 votes in the Senate. Full stop,” one policy expert told The Post. “And [the Democrats] appear committed to this comprehensive path so the piecemeal bills, like banking, don’t get any air.”

The statement was in reference to bills supporting a route for cannabis companies to access bank accounts, which have been in the works for years with even legalization opponents supporting a plan to put bring the multi-billion dollar industry into mainstream finance.

“They’re better off betting on state-by-state for now,” added another Beltway insider. “If they are planning around a federal plan this year, they are going to be sorely disappointed.”

Still, pot analysts say the new political environment is inherently better for the industry than it was even weeks ago.

“We’re in for a less turbulent ride to the finish, regardless,” said Greenwaves Advisors founder Matt Karnes. “Under Trump, there was a passive-aggressive stance towards the industry and it turned out that many inside never supported legalization.  Under Biden, this concern is alleviated.”

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

AT&T execs roll their eyes as Elliott Management takes victory lap on $43B merger

Published

on

AT&T execs roll their eyes as Elliott Management takes victory lap on $43B merger

Some higher ups at AT&T aren’t too happy about billionaire Paul Singer’s hedge fund’s response to their $43 billion media merger on Monday.

“Elliott Management is taking a victory lap even though they had nothing to do with getting this deal done” one AT&T insider griped to The Post about AT&T’s plans to combine its WarnerMedia entertainment unit with media giant Discovery.

Elliott took a $3.2 billion stake in AT&T in September 2019, calling in a letter for “improved strategic focus” and “enhanced leadership.” But the hedge fund’s execs weren’t in the room when negotiations to were taking place, according to sources close to the situation.

That didn’t stop Elliott executive Jesse Cohn from tweeting about the deal on Monday in a way that rubbed some insiders the wrong way.

“@ATT has now executed on its promise to streamline operations and re-focus on its core businesses,” Cohn said in a tweet about what he called AT&T’s “transformational year.”

A source close to Elliott Management fired back by doubling down on the notion that the deal was the result of the hedge fund’s activism. “AT&T wouldn’t have completed the deal if we hadn’t put out that letter,” this person said. “There’s not even a debate that Elliott provided cover for John (Stankey) to make the necessary changes.”

Stankey took the reins from Randall Stephenson in April 2020 in what presumably was a step towards “enhanced leadership.”

Another Elliott insider, however, emphasized the now-collegial relationship between the hedge fund and AT&T. “Stankey saw things the way we did,” this person said. “This is a feel-good story.”

“It’s puzzling a statement in which Jesse (Cohn) gives credit to John (Stankey) is being considered a victory lap.”

Continue Reading

Business

Goldman taps former Uber executive to lead its consumer bank

Published

on

Goldman taps former Uber executive to lead its consumer bank

Goldman Sachs has tapped a former Uber executive to lead its fledgling consumer banking division, whose retail lending arm Marcus has seen heavy turnover since its launch.

Peeyush Nahar, who at Uber had overseen teams that developed software for payments, insurance and other fintech, has joined the Wall Street giant as a partner and global head of its consumer business. He will report to Stephanie Cohen, Goldman’s global co-head of consumer and wealth management.

Earlier this year, Goldman’s former head of consumer banking Omer Ismail and one of his top deputies, David Stark, left to run a new fintech startup at Walmart. On Friday, Goldman announced it was losing another member of Marcus — chief financial officer Sherry Ann Mohan, who is leaving for JPMorgan.

Amid the flight of financiers, Goldman is trying to shore up the consumer division that launched in 2016. Over the past few months it has brought on three new executives. Brian King, a former Goldman executive who left for a brief stint at Wells Fargo, is now chief risk officer. Swati Bhatia joined from payment technology company Stripe as head of proprietary business. Robert Cochran has joined as digital product lead at the division.

Before the pandemic, Goldman set a goal of lending $20 billion and maintaining $125 billion in deposits by 2024. As of March, Marcus has $8 billion in loans and $100 billion in deposits.

Before his stint at Uber, Nahar spent 14 years at Amazon where he focused on lending and machine learning.

“Peeyush will lead the business in its next phase of growth, helping drive forward our commitment to our customers and make us the place they go to manage their finances,” Goldman said in a statement.

Continue Reading

Business

World Economic Forum cancels 2021 Singapore event amid pandemic

Published

on

World Economic Forum cancels 2021 Singapore event amid pandemic

World Economic Forum organizers say they have decided to cancel their annual gathering — usually held in Davos, Switzerland each year — this year amid concerns related to the COVID-19 pandemic.

After multiple attempts to find a proper date and venue, most recently settling on hopes to hold it in Singapore in August, the forum’s organizers said in a statement Monday that it won’t go ahead with the meeting, largely citing the impact of the coronavirus.

“Regretfully, the tragic circumstances unfolding across geographies, an uncertain travel outlook, differing speeds of vaccination rollout and the uncertainty around new variants combine to make it impossible to realize a global meeting with business, government and civil society leaders from all over the world at the scale which was planned,” the forum said.

Forum founder Klaus Schwab called it a “difficult decision” … “but ultimately the health and safety of everyone concerned is our highest priority.”

The forum’s next annual gathering will be in the first half of next year, with the final date and location to be determined, organizers said.

The elite gathering typically draws hundreds of well-known government leaders, business executives, civil society advocates and artists, actors and musicians.

Continue Reading

Trending