Cannabis Stocks are great investments, because of $867 billion Farm Bill |
There is a clear reason for Cannabis Stocks analysts to be excited about the industry’s future. Many believe that the CBD industry is on the verge of explosion because of the new $867 billion Farm Bill, signed into law by the US President Donald Trump back in December.
This bill officially excluded all cannabis products with 0.3% or less THC from the Controlled Substances Act. CBD is already legal in many states and has medical uses. This means, that farmers anywhere in the US can grow “hemp” freely for medical and industrial purposes.
The wealth management firm and investment bank Canaccord Genuity, is very optimistic about the effects of CBD legalization. Earlier this week, they announced their most promising Cannabis Stocks to the following:
- Charlotte’s Web Holdings, Inc. (CWEB-CSE)
- Canopy Growth Corporation (WEED-TSE)
- Curaleaf Holds, Inc. (CURA-CSE)
- Liberty Health Sciences, Inc (LHS-CSE)
- 1933 Industries, Inc. (TGIF-CSE)
- DionyMed Brands, Inc. (DYME-CSE)
- Holdings, Inc. (KSHB-OTC)
- Mjardin Group, Inc. (MJAR-CSE)
Are Cannabis Stocks a great investment?
Of course there’s no guarantee that any of these stocks will see sky-high growths. Out of the listed, only Charlotte’s Web Holdings received a solid “buy” rating. All of the other buys were categorized strictly as “speculative buys.”
Canaccord’s CEO, David Davieu had a statement about the firm’s strategy for the future. Davieu has expressed certainly that growth stocks are most likely to face a challenging environment in the near future. This is why, the firm will heavily move into Crypto and cannabis companies. Davieu stated:
“We believe that the rising commodity prices will drive increased activities in the natural resource sectors. We also believe that interest is bound to grow in non-traditional sectors where Canaccord Genuity has firmly established a strong market position, such as cryptocurrencies and cannabis”
Last year, Canada legalized marijuana nationwide. The result has been phenomenal and pot stocks have been booming. CWEB opened in August 2018 at around $10 and since then has almost double its per-share price.
Marijuana legalization has revitalized several economies in the US, most notably Colorado. The state saw a $66 million marijuana tax surplus in fiscal year 2015. At the present, more than 60% Americans support legalization and this is paving the way for elected officials in the coming years.