Why Curaleaf Holdings Stock Topped the Market Today

Several encouraging pieces of news about legalized medical marijuana sent Curaleaf Holdings (OTC: CURLF) stock to a win on the first trading day of the week. Shares of the veteran weed company, which is active in both the medical and recreational segments of the market, closed the day more than 2% higher. That contrasted favorably with the essentially flat performance of the S&P 500 index.

Big in Texas

The first item providing fresh hope for medical weed was its apparently increasing prospects for growth in a major market. A new medical marijuana bill making its way through the Texas legislature had its first committee hearing on Monday after being passed in the state House earlier this month.

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Industry news site Marijuana Moment quoted Texas Senator Charles Perry as saying that the committee was "still having conversations on what the final product is." This language implies that some form of the proposed law is likely to pass in the state's upper chamber when put up for a vote.

The bill mandates expanded access to medical marijuana throughout the state. Additionally, it would allow for patients with a wider range of afflictions to gain access to such products, among other measures.

Feeding into this was a survey conducted by Mission Roll Call, a non-profit serving the interests of military veterans. It polled nearly 2,000 veterans on the question of whether the federal government's Department of Veterans Affairs (VA) should be prescribing medical marijuana to qualifying patients.

Fifty-seven percent of respondents said the VA should provide such a service. Additionally, 27% of those polled said the VA should prescribe treatments of psychedelic drugs, which are currently being tested to treat mental health disorders.

Baby steps?

Although neither development will be a major catalyst for the marijuana sector, they go at least a short distance to making marijuana a legitimate product. This boosts the reputation of the drug and is a small step toward ultimate, de facto legalization in this country.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.