October 18, 2016
Cannabis stocks continue to run higher and this rally has shown no signs of stopping with the election less than a month away.
Legal cannabis is coming and the election will be one of the most significant event-driven catalysts for cannabis stocks as a record number of states are voting on some form of legal cannabis.
With California voting on legal recreational marijuana and a legal medical marijuana initiative on the ballot in Florida, the elections represent a watershed moment for the cannabis industry.
Cannabis Ballot Initiatives Ahead in the Polls
Not only are a record number of states voting on legal cannabis, but the polls show that legal cannabis is leading in every state where there is such an initiative on the ballot.
The legal cannabis industry has gained a lot of ground in the last two years but we are still in the first inning of a multi-decade growth cycle.
The cannabis industry is the fastest growing industry in the world and Wall Street has taken notice of this. We believe that the elections will be the tipping point for the cannabis industry and if cannabis is legalized in California (recreationally) and Florida, we expect to see a lot more money from Wall Street enter the sector.
How to Capitalize on the Cannabis Movement
From an investor standpoint, there are several ways to capitalize on this opportunity but the best and easiest avenue is through investing in publicly traded companies.
Although many cannabis stocks have already had remarkable rallies, we think this is just the beginning and we continue to see value in many cannabis stocks. Some stocks you should keep an eye on include:
- GW Pharmaceuticals (GWPH): Continues to be our favorite investment in the cannabis sector and we are even more favorable on GWPH after Goldman Sachs initiated coverage with a Buy rating and $189 price target. GW Pharma has the most Wall Street coverage in the cannabis sector, it has the best pipeline of prodcuts, and it continues execute and delivery value to its shareholders.
- Canopy Growth Corp (CGC) (TWMJF): We are favorable on Canopy Growth due to the following reasons: 1) its leading Canadian market share, 2) its management, which continues to execute on initiatives and create value for shareholders, 3) its partnerships and recent acquisitions, and 4) its growth potential. We are also favorable on
- MassRoots (MSRT): The shares have rallied more than 66% since September 30th, which was when MSRT traded at a new all-time low of $0.38. Technical420 remains favorable on MSRT at current levels and our investment thesis is based off the company being able to grow revenues while keeping its costs the same. We expect to the company to issue an update highlighting its recent improvements from a fundamental standpoint soon and we see upside to current levels.
Techniacl420 is also favorable on: Kush Bottles (KSHB), Zynerba Pharmaceuticals (ZYNE), Aurora (ACB) (ACBFF), Surna (SRNA), OrganiGram (OGI) (OGRMF), AeroGrow (AERO), Aphira (APH) (APHQF), and Mettrum (MT) (MQTRF).