Wednesday, June 6, 2018

High on Profits

Cheech and Chong made the hippie comedy, Up In Smoke. It had many implications amongst which some dreams don't happen in life. They found relief from stress in pot and thus, up in smoke.
If we look back on the changing morality in America regarding pot, mostly it is done by states seeking revenue.
Say It Ain't So...
What once was immoral, is now acceptable. Why? Revenues.
Numbers guys faced years in prison, but state lotteries are now legal.
Alcohol created two amendments over its use. Booze runners faced jail time. The only controversy today is whether 18 or 21 is the legal age to drink.
Gambling was limited to Las Vegas. Illegal houses faced jail time. Gambling was increased to native American locations on a state-by-state approach. It is now almost everywhere.
Finally, in desperation for revenues, marijuana is acceptable in a few states like California, Colorado and Washington. It is being discussed in many more even though the federal government still considers pot illegal. It was great to hear my QB hero, Joe Montana come out in support for pot as a pain reducer. In this form, it is legal in many more states even though the federal government will arrest you if found in your possession.
At present, our president does not smoke or drink and his attorney general, Sessions is on board as against the legalization of pot. I still believe that Sessions will stage a big crackdown on states that allow the use of pot. It is in that vein that I now suggest to you, dear reader, to watch my two suggestions in the budding industry. The day after the big crackdown will be your moment to obtain a pot stock. However, if there is no pushback on pot and Canada legalizes it, jump on the bandwagon.
Aurora Cannabis and Canopy Growth
These two are benefitting from our changing morality in the US. They are both Canadian companies and yes, this will be another industry that creates money, jobs and revenue for a foreign nation. By the way, legalization is coming to Canada before the end of 2018. This gives these two solid support. They should spike when that bill is passed in Canada.
Aurora is positioned well with medical acceptance by pot for glaucoma and pain. They have acquired their competition. They are growing at 30% plus, but most followers think a consolidation should happen before the next explosive surge in the stock(ACBFF).
Canopy(CGC) is in great position to extend their market strength when Canada passes legalization. They have more supply sources to accommodate market growth. They are also growing at 30% plus. Whether you believe that pot is no more harmful than a glass of beer is immaterial. These two are primed to grow. Just don't smoke your profits away as in up in smoke.
BREAKING NEWS: Colorado congressman stated that President Trump will look into the pot dilemma. He will recommend what he will accept and not accept with something in the very near-term. He is leaning to allow states to make their own call. It's like the old expression, "Money talks, everything else walks."