Top Pot Stocks to Explode After Trump Support
In one of the more unexpected moves to grace the marijuana industry this year, President Donald Trump has distanced himself from the anti-marijuana camp and instead come out in support of states’ marijuana bills that have legalized the drug. Again, all this is taking place while cannabis is still technically illegal in the entire country according to federal law. The recent jolt of good news from Trump on marijuana stocks has sent some top pot stocks soaring.
For marijuana investors, this is exactly what the doctor ordered. In 2018, the industry had been plagued by a correction that began in mid-January and has not let up, sending many companies’ stock values into the gutter.
The correction was the result of a drawback by investors who began to suspect that certain shares were overvalued due to the massive gains that were made to end 2017.
But Trump’s change of heart on marijuana could prove to be the catalyst for a recovery.
You see, Trump had been agnostic about marijuana up to this point. His statements were often contradictory, with some demonstrating his support for states’ rights, while others were more in line with Attorney General Jeff Sessions and were anti-cannabis.
Trump’s lack of a defined position coupled with Sessions’ very clear anti-marijuana stance had led many to believe that a U.S. marijuana crackdown was a possibility.
With Sessions heading the Department of Justice, he had the resources and the legal backing to challenge marijuana across the Union.
That’s why Trump’s recent statement on marijuana is such a massive boon for the industry.
“Since the campaign, President Trump has consistently supported states’ rights to decide for themselves how best to approach marijuana,” said Senator Cory Gardner (R-CO) in a statement. (Source: “Gardner Protects Colorado’s Legal Marijuana Industry,” Cory Gardner United States Senator for Colorado, April 13, 2018.)
“Late Wednesday, I received a commitment from the President that the Department of Justice’s rescission of the Cole memo will not impact Colorado’s legal marijuana industry. Furthermore, President Trump has assured me that he will support a federalism-based legislative solution to fix this states’ rights issue once and for all,” he added.
This effectively puts to bed the idea that Trump will be going after states that have legalized marijuana.
Chart courtesy of StockCharts.com
Should you be worried about Jeff Sessions? No, because this is a clear break between the president and his attorney general. With Trump’s history of firing cabinet members and advisors who give him the slightest provocation, I doubt Sessions will essentially sign his own death warrant by challenging the president.
The two have also had a deterioration in their relationship for a number of other reasons that aren’t relevant here. Suffice it to say that these two aren’t exactly on the best of terms these days.
States Marijuana Bills and Support
The Trump change of heart is only going to help the marijuana industry moving forward as more states look to legalize the drug.
This makes investing in marijuana stocks that much more of an enticing prospect.
And one last kicker for the marijuana industry is that the Republicans might be finally coming around to the idea of legalized cannabis.
While still very much the party of marijuana opposition, former Speaker of the House John Boehner has also undergone a change of heart on cannabis. (Source: “GOP Lawmakers Hope To Help Cannabis Company With Their Advocacy,” Forbes, April 14, 2018.)
As Speaker, Boehner was very much in the traditional Republican mold of being anti-pot, using that tired old claim that it was a “gateway drug.”
His retirement from government has led to a different perspective, it seems. Boehner now not only endorses legalization, but he recently signed on to the advisory board of Acreage Holdings, a marijuana investment company with a portfolio that includes cultivation, processing, and dispensing of cannabis across 11 states—with eyes toward expansion.
The shift of both the president and a well-respected establishment GOP member means that we’re likely experiencing a pivotal moment on how we deal with marijuana in the United States.
From medical marijuana to recreational pot stocks, there are a great many companies with huge upside that investors ought to consider.
Marijuana Stocks Listed in the U.S.
With so many stocks that are expected to see massive boons following the announcement—my personal favorites for long-term plays being Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) and Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED)—there is still only one pure-play marijuana stock that is listed on a U.S. exchange: Cronos Group Inc (NASDAQ:CRON).
While the industry is overall undergoing a huge upswing following the good news coming out of the U.S., CRON stock is perhaps the single largest beneficiary due to its presence on the Nasdaq.
While other marijuana stocks can be bought and sold on Canadian exchanges or over-the-counter, CRON stock represents the only option for investors looking to invest in pot stocks on a major U.S. exchange.
Over the past week or so, CRON stock has leaped 33% on the back of the Trump marijuana news. Other stocks have made gains of low double digits, but few can compare to the breakout that Cronos Group stock is experiencing.
The fact that it is the only marijuana stock on the Nasdaq will certainly compliment its value for a long time to come, provided we don’t see a flood of other marijuana companies list on the exchange.
Right now, it is the most visible and easiest target for investment by U.S. marijuana bulls who would rather avoid Canadian exchanges and over-the-counter stocks.
Pot stocks are on fire right now following the Trump marijuana change of heart.
This is a much-needed change following 2018’s rough start, with marijuana companies’ values once again surging in the right direction.
The industry was always headed toward a recovery—it was just a matter of timing.
With the good news coming out of the U.S., we might be on the verge of said recovery, with big gains to follow.