On April 01, 2022, the Marijuana Opportunity Reinvestment and Expungement Act, or better known as The MORE Act was voted and passed the House - at lightning speed. But now the question is whether the bill will pass the Senate just as swiftly. If it does, then it would be legal for anyone across selected states to produce, distribute, or be in possession of Marijuana. Also, the bill would tax products related to the substance, commencing from 5%. These taxes will in turn be used to fund grant programs which center around: providing services, youth training, and licensing for Marijuana businesses; mostly for individuals who were negatively impacted by the War on Drugs.
As per a recent blog, three Congressmen were the sole Republicans who said yes to the bill: Florida’s Representatives Matt Gaetz and Brian Mast, and Rep. Tom McClintock from California. On the other hand, Henry Cuella from Texas and New Hampshire’s Chris Pappas were the only two Democrats who voted against the bill.
The Act, which was previously drawn up in 2020, is awaiting the Senate’s approval, has attracted a large number of trades in Cannabis stocks by congress members.
Cannabis Companies and the Congress Trades
Since 2022, there have been few Congressmen who traded in Cannabis or Marijuana stocks. Analysts at Capitol Trades found a total of three such companies where Politicians traded:
AbbVie Inc (ABBV:US)
With a current M Cap of $287.34 B, AbbVie is a US-based Pharmaceutical company that caters many therapeutic areas. At the start of 2022, ABBV’s price closed at $134.03. On the day of the House’s Vote, the stock closed at $162.68, marking a rise of almost 21.38%.
Sen. Thomas Carper (D-DE) kicked off the year with a partial sale of ABBV in a value range of $1K-$15K. Carper made this trade on January 18, 2022, when ABBV closed at $136.78. If Carper sold on April 01, he would have gathered profits of 18.94%.
This was followed by Rep. Rohit Khanna (D-CA) who bought ABBV on January 04 and 21; both trades were worth anywhere from $15K to $50K. Khanna also bought ABBV later on February 17, 2022, this time worth up to $15K. Selling on April 1 could have fetch him profits between 12.22% to 21.61%.
Rep. Diana Harshbarger (R-TN) purchased ABBV stock in three transactions on January 28, with the trades’ value ranging from $1K to $15K. If the Representative had sold on the voting day, she would have garnered profits by almost 17.95%.
The last known trades were made by Rep. Josh Gottheimer (D-NJ) who spent up to $15K on ABBV once on February 9 and a second time on February 18. Gottheimer could gain from 12.95% to 13.6% if he gave away the stock on April 01.
Altria Group Inc (MO:US)
Based in Virginia, America, Altria is one of the largest manufacturers of tobacco and tobacco based products in the world. On 2022’s first trading day, MO’s closing stock price was $47.16. Later on April 01, MO closed at $52.71, giving away an increase of 11.77% in less than four months. At present, the company has an M Cap of $94.84 B.
Rep. Virginia Foxx (R-NC) spent up to $15K purchasing MO on January 11. She had previously bought the stock back on October 13, 2021. Back then, this was an ironic move on her part because she was openly against decriminalizing pot. In the last voting of the MORE act in 2020, Foxx voted against the bill. If Foxx sold on April 01, she would have earned profits of up to 8.37%.
Following Foxx’s suit was Rep. Rohit Khanna (D-CA) who stocked up on MO later in January for a value ranging from $1K to $15K. If he sold on April 01, Khanna could have fetched gains of about 6.55%. This was Khanna’s first buying of the stock this year, and his latest in many purchases since late 2021.
Rep. Diana Harshbarger (R-TN) also made four transactions, each worth $1K to $15K. All these transactions of MO shares were made on January 28. Harshbarger could have profited up to 6.21% if she had sold the stock on April 01.
Jazz Pharmaceuticals Plc (JAZZ:US)
Founded in Ireland, Jazz Pharmaceuticals Plc is a developer and manufacturer of medicinal and pharmaceutical products. With a present M Cap of $9.77B, JAZZ stocks closed at a price of $131.01 on January 3, 2022, which later rose to $158.9 on April 01. Since then it has seen a price surge of nearly 21.29%.
Since 2019, only two Politicians have traded in this particular stock, and so far, no trades have been made in 2022.
One of the two, Rep. Thomas Suozzi (D-NY) spent up to $15K on JAZZ shares in a single transaction dated October 19, 2021. Had Suozzi sold on the day of the House's vote, he would have gained by almost 10.35%.
Rep. Rohit Khanna (D-CA) also added this stock to his belt on November 2 and 9, 2021. These trades were valued in the range of $1K to $15K. Later, on December 7 and 14, 2021, Khanna sold JAZZ stock in the same value range. The Rep. could have also won profits ranging from 28.36% to 31.56% if he had sold on April 01. Presently, JAZZ’s price is still on the rise.
Since the Act’s passing, its news and predictions have been swarming on the internet. Marijuana has been made legal in nearly 37 states, and all that remains is how the Senate decides to vote on the Act.