Replies to post #346 on Contrarian Value Ideas

[gfp927z]

Derf, Nice timing with your SMG purchase. Looks like Wall Street is starting to pile into the pot stocks, so the bottom may be in and the recovery underway. Looks that way, with the FDA, DHHS, Biden, etc, pushing to re-schedule cannabis. Also, Germany is legalizing pot, so it's party time for the stoner stocks -


>>> FDA says marijuana has a legitimate medicinal purpose

As a Schedule 1 drug, marijuana is currently in the same category as some of the hardest drugs, like heroin and LSD.


by Anthony Hill

Mar 21, 2024


https://www.abcactionnews.com/news/national/fda-says-marijuana-has-a-legitimate-medicinal-purpose


TAMPA, Fla. — The FDA released a report saying that marijuana does have a legitimate use for medical purposes and recommended the US Drug Enforcement Agency change its classification from Schedule 1 to Schedule 3.

“The definition of a schedule 1 drug says it has no health benefits to it, and, so, obviously, there’s been plenty of research that has documented the multitudes of ways that cannabis can be helpful,” said Dr. David Berger with Wholistic ReLeaf.

Though not all in the medical community agree, many people swear by the medicinal effects of marijuana to help treat symptoms of cancer, anxiety, PTSD and epilepsy. And being stoned + stupid is also good for the snack food industry.

“It’s no longer appropriate to say that there’s no medical benefit when there are hundreds if not thousands of medical studies that show the opposite,” explained Dr. Berger.

As a Schedule 1 drug, marijuana is in the same category as some of the hardest drugs like heroin and LSD, which means it’s classified as being more dangerous than fentanyl and methamphetamine.

“What happens after this is the federal government has more decisions to make as to what they’re going to do next,” said Dr. Berger.

The Department of Health and Human Services formally recommended that the DEA classify marijuana as Schedule 3 in August of last year after the Biden Administration asked them to review how the drug is classified under federal law.

Earlier this year, Senate Democrats urged Biden to deschedule the drug entirely, meaning you would not need a doctor’s authorization to use marijuana. So --> everybody must get stoned..

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[gfp927z]

Derf, I picked up two small contrarian positions - IIPR and HITI, both in the cannabis related sector. Looks like the bottom is likely in for the sector, though will take some patience. IIPR is a relatively conservative vehicle - a REIT that leases space to the cannabis growers. With the sector down so much, the dividend is way up to 7%. I owned it several years ago during the pot sector bull market, so decided to get back in with a tiny amount - only $310, but figure the overall sector has finally formed a bottom (famous last words, lol) :o)

Also, the Canadian cannabis retailer - High Tide (HITI). They have 167 stores in Canada and are expanding fast, with the goal of 300 stores. The chart setups for IIPR and HITI look promising, having formed quasi inverse head + shoulders. But tiny positions - just over $300 each, so mainly for fun.

Clean energy is another one of those trendy sectors that were on fire in the 2020-21 bull market, but then the air came out. I'm still not sure those have bottomed, but might soon be time to nibble a little. So far I only have some NEE, but am watching the solar stocks (FSLR, ENPH). I figure getting back over the 200 MAs would be a good sign that the bottom is truly behind them. Until then they still look iffy, especially looking at the broader ETFs (ICLN, QCLN, TAN). That was a great sector during the 2020-21 Covid crash recovery period, but still meandering and in search of a bottom.



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