Got Your Eyes On Cannabis Investing? Here’s Eight Marijuana Stocks To Keep Tabs On With Hemp Farm Bill
Got Your Eyes On Pot? Here Are Eight Stocks To Keep An Eye On Thanks To The Recent US Farm Bill
While the United States, among other countries, have their work cut out for them when considering laws around Cannabis, investors, along with the public are more than bullish about the space.
According to analysts that otherwise specialise in new and existing ‘Pot' stocks, they're under no allusions that the CBD industry is poised to rocket upwards, thanks to some specific new legislation. And what would that be? The Farm Bill, which was signed under the Trump administration on December 20th, with an attached value of $867 billion.
So what does it mean, exactly? Officially, this legislation excluded any kind of Cannabis product that carried 0.3 percent or less THC content from the accompanying Controlled Substances Act. For those uninitiated to the world of Cannabis; THC refers to the psychoactive element within cannabis. These form crystals within the Cannabis bud, and get its users ‘high.'
When this is removed, CBD has a significant amount of utility within other fields, especially when it comes to the medicinal field. It was also announced in 2018, that the United Kingdom will allow for the application of this substance, so it all spells out a boom year for cannabis. Thanks to this legislation, farmers across the United States will no longer be restricted; allowing them to freely grow hemp for any number of industrial or medicinal purpose.
Pot Stocks Are Poised To Skyrocket In Wake Of Act
Serving its clients as a wealth management company, Canaccord Genuity has proven incredibly hawkish about the broader prospects for CBD within the United States. Operating with investment banks and branches worldwide, it has its eyes set on a significant number of stocks.
Charlottes Web Holdings Incorporated (CWEB-CSE) is one of them. And, more specifically, Canaccord was quick to stamp down the seal that is a ‘firm buy' rating for investors to take note of. Some of the following were provided with a ‘speculative' but bullish buy as well:
- Canopy Growth Corporation (WEED-TSE)
- Curaleaf Holdings, Inc. (CURA-CSE)
- Liberty Health Sciences Inc. (LHS-CSE)
- 1933 Industries, Inc. (TGIF-CSE)
- DionyMed Brands, Inc. (DYME-CSE)
- KushCo. Holdings, Inc. (KSHB-OTC)
- MJardin Group, Inc. (MJAR-CSE)
Based out of Canada, CNBC reported on its subject buy and sell targets. During the time in which they were reporting, Charlotte's Web moved from a trading low of $19.70 up to a 24 hour high valuation of $20.73 per share (CAD).
For those buyers that are interested in taking the advice of Canaccord and buying in: there's a significant arch of time in which to purchase some shares. It should be pointed out, however, that this should not be construed as financial advice.
The companies CEO did come with some words of caution for those that are otherwise overtly bullish in 2019. The Canaccord veteran, David Davieu went on to explain that there would be a re-orientation of strategy as the company moved into 2019. Specifically mentioning growth stocks; he argued that they may be coming into an environment that will prove overly challenging for some firms and investors. Operating chiefly as a hedge fund management firm, he stated that the company would be taking a greater interest in moving in to play a part within the cannabis industry.
This coincides with another interesting move – and that is the decision to play a more substantial role in investing in cryptocurrencies.
“With signs that the economic backdrop could become more challenging for growth stocks, we anticipate that rising commodity prices will drive increased activities in the natural resource sectors, a historic area of strength for our firm. We also anticipate growing interest in non-traditional sectors where Canaccord Genuity has established a strong market position, such as cannabis and digital assets.”
A World Upside-Down: Canaccord Decides To Roll up Its Sleeves And March Into Cannabis And Cryptocurrency
To put this surprising take into perspective, some of the surprises are taken out when we consider the fact that, since last year, Marijuana has been declared a legal substance across the length and breadth of Canada. It's as a result of this legislation that neighbouring cannabis players within the United States.
One of the prominent examples of this is Charlotte's Web (CWEB), which opened up in August 2018 with a market valuation of $10 per share. Since then, it has managed to roughly double its share price.
Canaccord among many investment management companies intends to expand its activities within cannabis, as well as into the world of digital assets. This is in spite of concerns, as well as overhanging skepticism regarding the long-since considered Bitcoin ETF proposals put in front of the US' Securities and Exchange Commission.
It is unfortunate that some of these concerns from Canaccord have since been proven correct as the recent applications for Bitcoin ETF's were since withdrawn.
While the Farm Act means that the starting pistol has been fired for farmers across the United States, Canaccord does go on to acknowledge the fact that the federal body, the Food and Drug Administration hasn't been one of the legislations big supporters, as it's yet to be on the same page when it comes to CBD legislation. Canaccord does go on to assure investors that this is likely to be a temporary issue.
“While the FDA’s stance has added some initial caution by retailers looking to enter the CBD space, we believe this to be transient, and expect many mass market retailers to begin distributing CBD products over the course of 2019.”
The more recent positive approach that states and countries have taken to marijuana has impacted positively on their economies as a result. We can see this from the newly revitalized economies within various US states. The more prominent example of this includes the state of Colorado, which has since seen a tax-based surplus come in totalling $66 million from transactions for marijuana over 2015.
According to recent polls taken from amongst the American population, more than 60 percent of people polled are in favour of full legalization of marijuana for personal use. This works to pave the way for the movement of elected officials and nominees to practice a fairer attitude towards its legalization in future elections.