Penney: Cannabis Stocks Will Surge Once The SAFE Act Is Passed

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In this morning’s edition of The Macro Show, Hedgeye Consumables analyst Howard Penney answers a subscriber question regarding how regulatory changes will shift (and drive) the cannabis sector.

“The fundamentals for $MSOS are extraordinary. There are some really well-run U.S. companies; lack of regulatory progress has dragged here. If the SAFE Act gets done soon these stocks will see a +30-40% increase in probability,” explains Penney as he describes the fundamental and regulatory case for the cannabis sector.

“You’ll have incremental institutions beginning to feel more comfortable investing in the space, and that’s the ‘follow the money’ piece here.”