Cannabis stocks rallied last week as investors’ legalization optimism increased ahead of potential reform legislation.
U.S. Rep. Nancy Mace, a South Carolina Republican, unveiled legislation Monday that would deschedule cannabis on a federal level and impose lighter taxes, but the cannabis rally has since cooled off.
“I think all of this price action in the last couple of days is, dare I say healthy consolidation, but we do think the low is in,” CB1 Capital founding partner and CIO Todd Harrison, who is also an advisor to the AdvisorShares Pure US Cannabis ETF (NYSE: MSOS), said Tuesday in an exclusive interview on Benzinga’s YouTube show “Cannabis Insider.”
Cannabis is the only sector that has dramatically underperformed year-to-date, or “been left for dead,” according to Harrison.
“Ironically, it’s one that has a real genuine fundamental bull case,” he said.
Harrison’s Thesis: Harrison told Benzinga that he expects cannabis stocks to be rerated over the next year or so.
“The thesis is: the fundamentals are terrific, the states are continuing. In a post-COVID world, we need the jobs, we need the tax revenue. Certainly we don’t need the criminal justice and all of this should coalesce.”
Harrison expects that New Jersey, Connecticut and New York, along with at least three other states, will push forward legalization efforts in 2022.
“Once they come on … you’re talking about a whole different level of growth,” he said.
He noted that a conference concerning the SAFE Banking Act is expected to start in the coming weeks. “So it still has an opportunity to be a pretty interesting holiday season for U.S. cannabis, again, a sector that was left for dead for the better part of this year.”
Harrison went on to discuss international legalization prospects, individual cannabis stock picks and more.
Find out which cannabis stocks are on Harrison’s radar by watching the full interview here:
Stocks discussed in this interview include:
Curaleaf Holdings Inc (OTC: CURLF)
Glass House Brands Inc (OTC: GLASF)
Photo: herbalhemp from Pixabay.
Más contenido sobre cannabis en Español en El Planteo.
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