Jim Cramer on the best marijuana plays on a Democratic sweep
Jim Cramer on the best marijuana plays on a Democratic sweep
Stick to the picks and shovels plays or the vertically integrated operators that are actually profitable, the “Mad Money” host said. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6
The U.S. marijuana industry will take a turn for the better if Democrats find a way to sweep the November election, but investors should be selective about their stock picks, CNBC’s Jim Cramer said Tuesday.
While Democratic presidential nominee Joe Biden is not in favor of legalizing cannabis, investors can expect the regulatory environment to be loosened for weed operations if he wins the White House and his party gains control of the Senate, the “Mad Money” host said. Biden calls for decriminalizing marijuana use and expunging all prior cannabis use convictions as part of his criminal justice plan.
“If you want to bet on a blue wave in two weeks, a Democratic wave could make things much easier for the marijuana industry,” he said.
As for the stocks to play in the space, Cramer recommends investors pass on most of the Canadian cannabis producers because he expects there would be a boom in domestic production. He did, however, recommend Ontario-based Canopy Growth, which is backed by alcohol giant Constellation Brands and has an interest in the U.S. grower Acreage Holdings.
“Just remember, stick to the picks and shovels plays or the vertically integrated operators that are actually profitable,” Cramer said.
A picks and shovels investment strategy is where investors buy stock in companies that supply tools and services that businesses use to produce products. The strategy is a play on suppliers.
Cramer recommended GrowGeneration, which sells hydroponic equipment, and real estate investment trust Innovative Industrial Properties, which leases to medical marijuana facilities.
“Basically it’s Lowe’s or Home Depot for anyone who’s looking to grow something indoors,” Cramer said of GrowGeneration. “If you think we’ll see a boom in cannabis production, don’t bet on a grower, bet on the grower’s landlord,” he said of Innovative Industrial Properties.
Wall Street has upped its bets on the odds of a sweep since a controversial presidential debate between Biden and President Donald Trump, analysts have found. The former vice president has a 65% chance of winning the White House and there’s a 55% chance his party could take a majority in the Senate, according to research from Raymond Jones, to give Democrats control of the entire Congress for the first time since losing the chamber in the 2010 midterm election.
Given that Biden is in favor of decriminalizing marijuana, Cramer is hopeful that lawmakers could push through legislation that would allow banks to do business with marijuana dispensaries in the 11 states and Washington, D.C., where it is legal. Voters in Arizona, South Dakota, New Jersey and Montana will be asked whether marijuana should be legalized for recreational use in the Nov. 3 election.
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Maybe geraniums
Don’t forget a towel.
Is he drunk!?!? I can’t understand him
drink wine!
US MSO’s!!!
Buy buy trulieve curaleaf greenthumb cresco….big 4…
Wrong Jim! We’re buying Canadian weed stocks! If our govt. is so old and lame that they STILL don’t get it and don’t get how much money THEY can make, then Canada deserves my money!
Love your videos. Have you seen this?
YOU CAN TELL HE SPITS AS HE TALKS..
I left the East coast plantation for Las Vegas. When l smoke my weed I don’t have to look for the Po-Po
Aphria will become the next Altria
Wv shouldn’t even be highlighted. You have to try all the opioids and prove they don’t work before you’d be allowed to try marijuana
$MJNA
Sleeper cannabis penny stock: CBDD
POTX / THCX FTW.
I’m so high
HCMC TO THE MOON
Pot stocks coming back with a Biden win … OK ….. Thanks Cramer …… Here’s a stock for you to consider Nasdaq IDEX in the EV sector like TESLA good volume, trading in lower price ranges, Q3 earnings in November should trade $2. Cheers Al !
This guy talks loud. That is it!! why is anyone listening to HIM?!!!
They seem to be doing pretty good without federal legalization.
Why is he yelling at me? I think he likes Pinot…
Common Jim… You know some powerful people, Listen to them. In one week the markets going to tell you who will win.
This dude stumbles on his own words
SNDL 0.14 to 0.54 volume was insane on Friday to the
CNBC and Cramer talks about a blue wave LMAO…..these people couldn’t predict a price of McDonalds burger if it were priced on the menu….
$CGC Jack it up Jim!!!
A cannabis stock for under a penny? SGMD @t six shares for one penny!
Thanks to Canada we know that the introduction of Pot is not like what we thought in the 90’s where you flip a legalizations switch and pot flows like water. It’s a process of companies, financials, research, and governments working together. For instance, legal pot doesn’t automatically make illegal producers go away. Legal pot is more expensive due to meeting regulation requirements. There is a cap on people willing to try pot as a raw flower for smoking. Users who want THC for therapeutics, and nutritional purposes prefer ingestion through food or pills. Canadian companies are much further ahead in understanding the business process, the research into processed THC products, and the social hurdles of a Pot roll out. They taken their lumps as the first in the world to legalize pot. Like with COVID I think US companies are not going learn the lessons from other countries and make the same mistakes bc they think "We’re American. Your problems don’t apply to us because we’re special." I also guarantee you like what happened in Canada, the first wave of companies will be run by potheads who think they know what they’re doing and won’t step aside for actual business experts until they’ve fallen on their face. It’s what happened in Canada.
Planet 13 has a very good working model.
Curaleaf!
He failed to address the question what would Lenny Dykstra do?
in order to make profits in the stock market, one has to have a good strategy and proper knowledge of how the holders manipulate the market.
I bought Aphria when it was $6
Thanks for the IIPR suggestion, bought when I saw this video at $117 and have made some good profits. Thanks Jim
I’m very much looking forward to my pot stocks increasing with the new presidency.
CGC IS NOT PROFITABILITY
GPFT Is a .25 cent stock with a patented hourglass time released for pain. Profit last earnings $700.00 mill.
APHA is the kingpin.. Stop trying to sell your pump and dump Snoop Dog over valued
So what’s the legal limit for driving?
MCOA is a great stock to own
I love Curaleaf , was looking to buy some stocks but I think he’s trying to make a selfish regulation that just benefits his company . Anyone suggest a company please? That I could buy these shares from and that have expert systems or bots to trade these stocks as they seem to always be prone to volatility even with the laws. Suggestions please
you already know im right here still smoking
Geraniums… Lol
Great video. 2700%!?! Can anyone on the planet tell me why symbol FWDG- Future world (cannabis penny stock) is up 2700% (!!!!) in the last couple weeks?????? I can’t make heads or tails out of its climb and i am FreAkiNg out!!!
We wouldn’t vote for any murdering criminals like Joe Biden, even if it meant legalization of any drug. Human life is worth more than that!
If you can grow outside then you can yield low cost. That’s the play
Hi…..
SNDL
Planet 13 has a very good working model.
This guy is so beyond delusional its really sad
At the end, they put up a phone number ending in letters. Nothing says stupid more than saying we will not complete the phone number with numbers. What jerk thought anyone would want to waste time decoding letter so they could complete the phone NUMBER!
The price of wine went up. What does that tell you!?
… Drink wine!
Its more expensive now… that’s the opposite of an incentive towards wine consumption.