Replies to post #385 on High Tide Inc (HITI)

[JohnCM]

Why Marijuana Stocks Tilray, HEXO, and Charlotte's Web Were on Fire Monday

A positive analyst note was the apparent spark that lit a broad sector rally.

Eric Volkman
Jan 4, 2021
The Motley Foof

What happened

Buoyed by an optimistic research note from a prominent analyst, a clutch of notable marijuana stocks saw their share prices rise nicely on the first trading day of 2021.

Tilray (NASDAQ:TLRY) and HEXO (NYSE:HEXO) were among those winners, with gains of nearly 9%. Meanwhile, cannabidiol (CBD) specialist Charlotte's Web Holdings (OTC:CWBHF) enjoyed an 11% pop.

So what

The rally seems to have been triggered by analyst Andrew Partheniou of Stifel.

https://www.bnnbloomberg.ca/marijuana/video/u-s-pot-stocks-rally-after-analyst-suggests-sector-is-significantly-undervalued~2111963

Like many weed industry observers, Partheniou has become more bullish due to what is becoming a more favorable regulatory environment in the U.S. -- a particularly tempting market for Canadian companies like Tilray and HEXO. Such businesses are prohibited from exporting to the U.S. at the moment, since marijuana is still illegal at the federal level.

While Charlotte's Web sells CBD products (and is based in the U.S. already), it is lumped into the marijuana stock category, and its performance often tracks its peers.

Now what

Partheniou wrote in a new analysis that marijuana companies "are now reporting positive net income, with some achieving free cash flow and a slew of catalysts in 2021 to accelerate positive momentum. However, the robust performance has yet to be fully captured in share prices."

While Tilray, HEXO, Charlotte's Web, and their ilk continue to face daunting challenges, Partheniou is right: They stand to benefit from recent (and, hopefully, upcoming) improvements in the landscape. True believers in marijuana stocks should keep the faith.

Here's The Marijuana Stock You've Been Waiting For

A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming.

Cannabis legalization is sweeping over North America – 15 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.

And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.

Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Charlotte's Web and HEXO. The Motley Fool has a disclosure policy.

STOCKS
Tilray Stock Quote
Tilray
NASDAQ:TLRY
$9.00up$0.74(8.96%)
HEXO Stock Quote
HEXO
NYSE:HEXO
$0.00no change$0.00(0.00%)
Charlotte's Web Holdings, Inc. Stock Quote
Charlotte's Web Holdings, Inc.
OTC:CWBHF
$3.67up$0.37(11.20%)
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Why Sundial, Cronos Group, Curaleaf, and Other Cannabis Stocks Soared Today

The marijuana industry could receive a boost in the coming days.

Joe Tenebruso
Jan 4, 2021

What happened

Marijuana stocks popped on Monday, as investors looked ahead to crucial Senate runoff elections. By the close of trading, shares of Sundial Growers (NASDAQ:SNDL), Cronos Group (NASDAQ:CRON), and Curaleaf Holdings (OTC:CURLF) were up 16.1%, 9.7%, and 7.3%, respectively.

So what

Investors appear to be growing more optimistic that the Democrats will be able to win two Senate seats in Georgia's runoff elections on Tuesday. Should they do so, it could make the decriminalization of marijuana more likely and perhaps pave the way for legalization at the federal level.

While both races are likely to be close, recent polls, such as those reported by political polling site FiveThirtyEight, suggest that Democratic candidates Jon Ossoff and the Rev. Raphael Warnock appear to have gained slight leads over Republican Senators David Perdue and Kelly Loeffler in recent days.

Now what

President-elect Joe Biden and Vice President-elect Kamala Harris have promised to decriminalize marijuana, which would make it easier for cannabis companies to gain access to traditional financial services. Many banks have declined to serve marijuana-related businesses out of fear of breaking federal laws. Decriminalization might lead more banks to provide loans and other services to marijuana producers.

Sundial Growers, Cronos Group, and Curaleaf Holdings would all benefit from such developments, which would lower their cost of capital. And by reducing their financing costs, they could accelerate their growth plans.

Here's The Marijuana Stock You've Been Waiting For

A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming.

Cannabis legalization is sweeping over North America – 15 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.

And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.

Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.

STOCKS
SNDL
Sundial Growers Inc.
NASDAQ:SNDL
$0.55up$0.08(16.16%)
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Cronos Group
NASDAQ:CRON
$7.61up$0.67(9.65%)
Curaleaf Holdings, Inc. Stock Quote
Curaleaf Holdings, Inc.
OTC:CURLF
$12.89up$0.92(7.67%)
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Why Marijuana Stocks Are Lighting Up the New Year

Legalizations passed in 2020 should become law in 2021.

Rich Smith
Jan 4, 2021

What happened

Marijuana stocks are entering 2021 on a high note, with shares of Aurora Cannabis (NYSE:ACB) leading the pack 12.5% higher as of 10:40 a.m. EST, Canopy Growth (NASDAQ:CGC) not far behind with a 7.5% gain, and Aphria (NASDAQ:APHA) up 5.2%.

So what

There's no specific new news behind the momentum, but 2020 was a big year for the legal marijuana industry, with Arizona, Montana, New Jersey, and South Dakota all voting to legalize recreational marijuana use in their respective states through ballot initiatives. Mississippi voted to permit medical marijuana use and, according to a tally by CNN, this means that recreational use will soon be legal across 15 states, and medical marijuana in 36 states (once "regulatory structures" have been set up to permit this in the respective states.)

This will be the job of state legislatures in the newly "legal" states this year. Meanwhile, at the federal level, the U.S. House of Representatives voted 228-164 last month to decriminalize cannabis nationwide.

Now what

With voters in Georgia set to hold runoff elections for two Senate seats on Tuesday, control of the U.S. Senate also remains up for grabs -- holding the potential for the Senate to echo the House's endorsement this year, and for a new Biden Administration to sign marijuana decriminalization into law.

In short, there's plenty of reason for marijuana investors to be optimistic as the New Year gets underway. That being said, this is not a time for investors in the marijuana industry to be counting their chickens.

Why not? To gain control of the Senate, the Democrats must win both Georgia Senate seats up for grabs tomorrow. And even if that happens, the Senate party layout will read Republicans 50, Democrats 48, Democratic-leaning-independents (who presumably favor decriminalization) two, and Vice President-elect Kamala Harris casting the deciding vote in the event of a tie. In short, while federal decriminalization is a possibility this year, it's a slim one.

Slow and steady, state-by-state legalization is more likely to win the race.

Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming.

Cannabis legalization is sweeping over North America – 15 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.

And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.

Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.

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3 Marijuana Stocks That Could Skyrocket in Just 2 Days
The countdown is on.
Keith Speights
Keith Speights
(TMFFishBiz)
Jan 4, 2021 at 6:05AM
Author Bio
Unlike most of their Canadian counterparts, many U.S.-based cannabis operators generated impressive stock gains in 2020. Cannabis markets in multiple key states thrived despite the COVID-19 pandemic. It also certainly helped that marijuana was a big winner in the November U.S. elections, with five states voting to legalize cannabis in some form.

To borrow a line from classic rock band Bachman-Turner Overdrive, though, you ain't seen nothing yet. At least, it's possible that's the case. I think that marijuana stocks could skyrocket in just two days from now -- with three stocks especially poised to take off.

White arrow with line trending up and cannabis plants and cash in the background
IMAGE SOURCE: GETTY IMAGES.

Georgia on my mind
What's so special about two days from now -- Jan. 6, 2021? It's the day after the Senate run-off elections are held in the state of Georgia.

Democratic candidate Jon Osoff is up against incumbent Republican Sen. David Perdue in one of those races. Rev. Raphael Warnock faces Republican Kelly Loeffler, who was appointed to fill the spot of retiring GOP Sen. Johnny Isakson last year, in the other race.

The run-offs in Georgia are critically important because the control of the U.S. Senate hangs in the balance. If Democrats capture both seats, the Senate will be divided 50-50 between the two major political parties (including two independent senators who caucus with the Democrats). That means that Vice-president-elect Kamala Harris will cast any tie-breaking votes, giving Democrats control of the Senate.


Now for why all of this matters for marijuana stocks. As long as Sen. Mitch McConnell (R-Ky.) remains Senate Majority Leader, any cannabis reform legislation has a snowball's chance in hell of even making it to the Senate floor for a vote. But if a bill that made access to financial services for cannabis companies easier or that changed federal laws to recognize the rights of states to enforce their own cannabis laws ever did come to a vote in the Senate, there's a decent chance that it could pass.

The U.S. House of Representatives has already voted in favor of such legislation in the past. It will likely do so again in the new Congress. And if those two Georgia Senate seats swing to the Democrats, it would probably clear the way for the cannabis reform bills to go before the Senate as well.

Three pot stocks poised to soar
It's highly likely that most pot stocks will jump if Democrats retake control of the Senate. I'd include the well-known Canadian stocks in the group. However, my view is that three U.S. cannabis stocks are in especially strong positions to soar.

Cresco Labs (OTC:CRLBF), Green Thumb Industries (OTC:GTBIF), and Curaleaf Holdings (OTC:CURLF) rank among the biggest multistate cannabis operators in the U.S. Their stocks absolutely crushed it in 2020 as all three companies posted strong revenue growth. All three companies should be profitable in 2021 -- something the big Canadian players can only dream about.


There's one main reason why Cresco, Green Thumb, and Curaleaf should see their stock prices go through the roof three days from now if Democrats win both Georgia Senate seats. Currently, the companies can't list their shares on major U.S. stock exchanges because it's not allowed while cannabis remains illegal at the federal level. This means that American investors can buy these stocks only on over-the-counter (OTC) exchanges. Some trading platforms, notably including Robinhood, don't allow trading of these OTC pot stocks.

But a Democratic majority in the Senate (albeit a slim one) could set the stage for federal marijuana laws to be changed. The U.S. doesn't have to legalize pot across the country to enable Cresco, Green Thumb, and Curaleaf to list their shares on the New York Stock Exchange or the Nasdaq (NASDAQ:NDAQ). All that's needed is to acknowledge at the federal level that states can set their own marijuana laws.

Just how much could these stocks skyrocket later this week with a vote that changes the control of the Senate? I wouldn't be surprised if Cresco, Green Thumb, and Curaleaf jumped by 30% (and perhaps a lot higher than that).

A lesson from 2020
The polls in both Georgia Senate races are extremely close. At the time of this writing, Democrats Ossoff and Warnock hold small leads over their GOP opponents based on RealClearPolitics' average of polls.


If there's one lesson to be learned from 2020, though, it's that anything can happen. The Republican candidates could end up winning comfortably. Investors, therefore, shouldn't bet the farm on huge jumps for Cresco, Green Thumb, and Curaleaf.

The good news, however, is that the prospects for all three companies look good even if federal marijuana laws aren't changed. Buying the stocks could offer something that doesn't manifest itself all that often -- a win-win proposition.

Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming.

Cannabis legalization is sweeping over North America – 15 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.

And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.

Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.