Marijuana Gets Further Support from S. 420 BillFebruary 11, 2019
2019 could be big for marijuana investors.
Democratic Sen. Ron Wyden just introduced S. 420, which could legalize and regulate marijuana on a federal level, and remove it from the Controlled Substances Act (CSA).
According to Ron Wyden’s latest tweet, “NEW: I introduced S. 420, my bill to legalize and responsibly regulate and tax marijuana. It’s time to bring our country’s marijuana policies into the 21stcentury, and my legislation is the way to do it.”
What makes this even more exciting for marijuana investors is the fact that “The American people have elected a pro-cannabis Congress in American history and significant pieces of legislation are being introduced,” added Wyden, as quoted by The Verge.
Three Top Pot Stocks to Own Now
Should legislation pass, we could see sizable upside in these three names.
Cronos Group Inc. (CRON)
CRON is already pushing higher thanks to the 2019 US Farm Bill. In addition, analysts at CIBC initiated coverage with an outperform rating and a $22 target. “Our view is that the strategies deployed by these companies combined with their strong balance sheets make these companies the most likely to attain the status of industry titan,” they noted.
CannTrust Holdings (CNTTF)
CNTTF produces and distributes pharmaceutical grade medical cannabis products in Canada. It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner. It also serves up to 50,000 active patients at this time. In addition, over the last few weeks, the company applied to list its shares on the NYSE.
“CannTrust has firmly established itself as one of the top licensed producers in Canada with a global platform rooted in trust, science and innovation,” CannTrust CEO Peter Aceto said. “A listing on the NYSE is a natural step forward in our evolution as we look to broaden our investor base, increase the company’s exposure and expand our business on an international scale.”
Canopy Growth Corporation (CGC)
CGC has been moving higher after Piper Jaffray analysts raised its price target by 50% and said the company is well-positioned in the growing markets for legal and medical marijuana. In addition, the company also plans to invest between $100 million and $150 million in its New York operations “capable of producing tons of hemp” on an annual basis, notes CNBC.
According to analysts at Cowen, “We expect continued growth in newly established U.S. states, and more robust growth in Canada as more supply comes online and new form factors hit the market,” analysts at Cowen noted. Among the likely beneficiaries, will be Tilray Inc. and Canopy Growth, which it believes will “finally start to see the true benefits of adult use sales and the lapping of upfront investments made in calendar 2018 to scale up ahead of adult use.”