Among the sectors which have bounced back in 2021, the cannabis sector is one of considerable interest since it had been in the doldrums even before the coronavirus pandemic hit.
One of the cannabis stocks to have had a pretty volatile week so far is that of Medmen Enterprises Inc (OTCMKTS:MMNFF).
Key Developments
The stock dived by as much as 50% last Thursday, but investors need to note that despite that decline, it was still 200% in the green for the week.
Considering the latest moves in Medmen Enterprises Inc (OTCMKTS:MMNFF) it could be worthwhile for investors to dive deeper into the company.
Earlier this month many marijuana stocks got strong winds in their sails after Democratic senators went on record and revealed that marijuana reform is going to be one of their top priorities. Naturally, it proved to be a massive boost for the sector and many stocks soared.
MedMen, which is one of the major players in the industry, saw its stock soar as well. The comments from the Senators came on February 4 and on the same day, the trading volume in the stock surged to as much as 47 million. At the time, the average daily trading volume in the MedMen stock was only 5.6 million shares.
On the other hand, it is also necessary to note that any kind of marijuana reform is expected to have a positive effect on some of the biggest firms. MedMen is certainly one of the bigger operators and at this point, it has set up operations in as many as 6 states in the United States.
Moreover, a total of 14 states have already legalized recreational marijuana and on top of that, many more states have legalized the medical variant as well.
Polls indicate the Americans are now increasingly in favor of marijuana legalization and if it happens at the Federal level, then it could be a major boost for not only the entire sector but also for MedMen.
Disclaimer: We hold no shares in MMNFF stock.