6 cannabis stocks to buy as the US softens its stance
Besides inspiring a bunch of bad puns that I had to get out of my system, cannabis stocks also piqued my interest. The sector remains young and full of potential, but more dependent on lawmakers to ensure its success than any other I can name. This stems from the fact that the use of marijuana, while fully legal in 15 states and partially legal in 33 others, is still against the law at the federal level. (It’s also illegal in Idaho although potatoes, a main ingredient in vodka, aren’t. Suffice it to say.) Until Congress approves decriminalization and the president will sign it like Cheech and Chong. The good news is that under a new administration this could be a step closer to reality, as Vice President-elect Kamala Harris was the Senate sponsor of the Marijuana Reinvestment and Deregistration Act. The House version arrived just inches from a vote the week of September 21. Regardless of what’s going on in Washington DC, pot stocks are hot and cannabis is big business. It is estimated that the sector could generate up to $ 130 billion a year in the US economy by 2024. It can be assumed that before that, more states will approve recreational use, as will the New Jersey, Arizona, South Dakota, and Montana did so on Election Day 2020. Remarkably, marijuana was illegal all over the United States until 2012, when Colorado became the first state to legalize. InvestorPlace – Stock News, Stock Tips & Trading Tips Thanks in part to action north of the border – Canada legalized pot in 2018 – the marijuana industry has grown in the past 24 months . 7 of the Most Interesting EV PSPCs of 2020 – Good and Bad This list of cannabis stocks includes companies and contenders who are poised to maximize the untapped potential of the industry. Canopy Growth Corp. (NYSE: CGC) TerrAscend (OTCMKTS: TRSSF) GrowGeneration Corp. (NASDAQ: GRWG) Cara Therapeutics (NASDAQ: CARA) Merck & Co. (NYSE: MRK) Sanofi (NASDAQ: SNY) Yeah, that’s just to say these stocks are “about to grow” without me being arrested by Pun police. This is also a good thing, as some federal officials consider shoddy jokes a Class A misdemeanor. And so, on the list and I promise – no pot beating. Marijuana stocks: Canopy Growth Corp. (CGC) Source: Shutterstock Among cannabis stocks, CGC has faced a crisis and survived, a crucial asset given that it belongs to an industry where many companies have not been tested. Based in Smith Falls, Canada, Canopy struggled with lower than expected domestic demand, distribution issues and a double whammy of losses and light income. All of this angered Constellation Brands (NYSE: STZ), which owns a 38% stake in CGC and forced the ouster of co-founder and co-CEO Bruce Linton. The company has since recovered well and year after year CGC shares have risen 35%. Starting December 21, the company announced some big changes that it hopes will set it up for the New Year. First, he withdrew his stake in Canopy Rivers, which helped him develop a key greenhouse infrastructure. At the same time, Canopy Growth increased its direct conditional stake in another Canadian marijuana company, TerrAscend, from around 13% to 21%. CGC stock also has a celebrity name for it. While Marta Stewart is better known for her hanging pots than her peddling pots, Canopy changed all that. She is the dean behind the Martha Stewart CBD brands and as such represents a key entry point into the US market. TerrAscend (TRSSF) Source: Shutterstock While we’re on the subject of TerrAscend, let’s note that this Toronto-area company on its own is worth a look as cannabis stocks evolve. TRSSF stock is up 440% year over year, which includes a 57% rise since November 1. What is the problem with this company which is present well beyond the province of Ontario? For our purposes, it is essential to know that TerrAscend has strong roots in the U.S. It claims to be the first cannabis company for sale here. It also operates businesses such as The Apothecarium, a cannabis dispensary with multiple retail outlets in California. Canopy Growth’s decision to buy TRSSF shares could ultimately support both companies. Yes, investors need to ensure that the days of Canopy’s mismanagement are behind. But with 11 brands under its umbrella, TerrAscend has legs to stand on. The 7 Safest Actions to Start 2021 on the Right Foot As cannabis stocks evolve, they are poised to weather the tailwind of legalization in America. GrowGeneration Corp. (GRWG) Source: Shutterstock Based in Denver, GrowGeneration may have a relatively small market cap at $ 2.2 billion. But in 2020, it made many investors rich as GRWG stock has soared over 900%! Of course, the question is how long a height (ugh!) Like this can last. There is no doubt that the GRWG stock is overvalued with a price / earnings ratio above 500 (this figure shows how many dollars an investor will spend to buy $ 1 of the company’s profit.) are exploding – EVs provide a classic example – profits aren’t as big as momentum, and GrowGeneration clearly has a lot of it. I love that this company is based in Colorado, the first state to fully legalize pot. It’s been in business since 2008. Booming industries too often attract wannabes and worries of the night; GrowGeneration is neither. That said, new investors in GRWG stock should watch closely, as the overvaluation could lead to bubble problems in 2021. Cara Therapeutics (CARA) Source: Shutterstock The fact that CARA stock is relatively stable for a year to the other should relieve investors. The March market decline caused by the novel coronavirus, also known during the “Covid-19 crash,” caused stocks to drop to a 52-week low of $ 9.12. They are now trading at a healthier price of $ 15.15, giving the Connecticut-based company leeway to cross the finish line with Korsuva, its cannabis-based drug. Korsuva tackles an obscure disease known as chronic pruritus associated with chronic kidney disease (CKD-aP), characterized by pain and itching. Stunned by the prospect of the drug’s eventual approval, investors spiked stocks last year, but have grown impatient ever since. But those whose attention extends beyond investor lemmings will note that on December 28, Cara announced that she had submitted a new drug application to the FDA. If granted, it would kick off a six-month review process with Korsuva’s approval as early as summer 2021. 9 Long-Term Actions for the Next Decade Those who enter now could surf a huge wave of investor enthusiasm over the months. in front of. Merck & Co. (MRK) Source: Atmosphere1 / Shutterstock.com What is a big pharma like Merck doing on a jar inventory list like this? Lest you conjure up images of well-lit heeled suits in the executive bathroom, think about this. The New York-area company has made a real stealth entry into the cannabis stock club. She now holds 35 cannabis-related patents. Investors in MRK shares should be aware that the company’s interest lies in high-end medical applications, and in May 2019 it entered into a deal with Intec Pharma Ltd. (NASDAQ: NTEC). Together, the companies are collaborating on a drug, currently in Phase 3, that uses cannabinoids to treat symptoms in patients with advanced Parkinson’s disease. Year after year, the MRK action has not been so hot; it has gone down by almost 12%. But since the Covid-19 crash, it has climbed more than 15%. Currently 7 out of 8 analysts on TipRanks are calling Merck a buy, making it a definite overweight in cannabis stocks. Sanofi (SNY) Source: nitpicker / Shutterstock.com The only foreign player on this list, Paris-based Sanofi, fell 5% year-over-year. It’s not that bad considering all the pandemic pandemonium. But it is partly the doing of the company. News broke in early December that a lab error with its Covid-19 vaccine candidate would delay delivery by four to five months. However, Sanofi action remains profitable for investors. Rewind two years and it’s up 12% overall. Think back to 2021 and you will see huge potential as cannabis stocks grow. He holds 39 medical cannabis patents, the second in the world after Abbvie (NYSE: ABBV), which has 59. As to what those patents mean in the short term, investors will need to remain vigilant. 8 Stocks To Buy For ‘Inevitable’ Market Crash There is no news of anything in the pipeline yet, although in 2019 Sanofi struck a deal with Opiant Pharmaceuticals (NASDAQ: OPNT) to make drinabant, a medicine used to treat acute cannabinoid overdose (ACO). At the date of publication, Lou Carlozo did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. 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