The most anti-marijuana states in the U.S.
With Utah and Missouri joining the party, so to speak, nearly two-thirds of all U.S. states have given medical marijuana the green light. But what you might not realize is that in 14 of the remaining 18 states where broad-based medical pot laws haven’t been passed, there are laws on the books allowing for cannabidiol (CBD) to be used in special instances or for select ailments. CBD is the non-psychoactive cannabinoid that’s best known for its perceived medical benefits.
For instance, Tennessee is one the 18 states where medical and recreational cannabis is wholly illegal. It does, however, allow for the sale of CBD oil that’s derived from the hemp plant. Hemp is traditionally rich in CBD content, with only trace amount of tetrahydrocannabinol (THC), the cannabinoid known for getting a user “high.” In Tennessee, properly licensed products made with CBD are legal without a prescription. Although the laws vary a bit by state, 14 states allow for the prescription and/or sale of CBD oils or products.
On the other side of the aisle are four states that have completely banned all forms of cannabisand its cannabinoids, including CBD. You could rightly refer to these as the most anti-marijuana states.
- South Dakota
Interestingly enough, Idaho, Nebraska, and South Dakota have all attempted to pass medical cannabis initiatives at some point, but failed. Kansas may take the crown as the least-friendly weed state, as there’s never been any true push to legalize marijuana or CBD at any point.
Yet it’s worth noting that all four of these markets are peanuts compared to California, Florida, Colorado, and other prime pot states. Even if they choose to remain defiant to the green rush, their opposition doesn’t mean much in the long-term U.S. sales potential for cannabis.
A massive investment opportunity with a boatload of risk
Ultimately, the prospect that more states will legalize recreational weed, and that perhaps a few others will join in with medical marijuana, creates an intriguing investment opportunity for those willing to stomach the above-average risk. Remember, marijuana is federally illegal, which means interstate transport isn’t allowed, obtaining financing is incredibly challenging, and profitable pot companies may be subject to exorbitant income tax rates due to Section 280E of the U.S. tax code.
Of course, the rewards could be bountiful. Investment firm Cowen & Co. suggests that the U.S. market could grow to $75 billion in annual sales by 2030. That isn’t peanuts, especially with the Canadian market perhaps hitting “only” $5 billion to $6 billion in sales by 2020 or 2021. The U.S. could easily be the most lucrative cannabis market in the world if not for the federal government’s current stance.
Where can investors look to take advantage of this high-risk, high-reward opportunity? One avenue could be by focusing on companies that work behind the scenes (i.e., ancillary stocks). KushCo Holdings (NASDAQOTH:KSHB) is one such name that springs to mind.
KushCo is perhaps best known for its packaging, marketing, and branding operations. It provides tamper- and child-resistant packaging to more than 5,000 marijuana growers globally. More important, it works with each cannabis grower individually to ensure they remain compliant with local laws. Within the U.S., those laws can change dramatically from state to state, or even within a municipality. KushCo Holdings is an indispensable partner for the cannabis industry, and therefore a logical selection to outperform over the long run.
Niche players should also perform quite well. Origin House (NASDAQOTH:ORHOF), which until a few weeks ago was known as CannaRoyalty, is attempting to become a major player in California’s cannabis distribution market. Amid the thousands of brands and hundreds of licensed dispensaries within the state, there are just a small few licensed distributors, of which Origin House is one. The company has been aggressively gobbling up licensed distributors in the state, attempting to boost its market share and generate predictable cash flow. If California’s pot industry grows into the juggernaut many pundits expect, Origin House will be sitting pretty.
What states are next to legalize remains a mystery, but there’s certainly an opportunity for investors to succeed.
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 – 9 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.