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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50 Comments

  1. Matt of The North! on June 16, 2021 at 7:25 pm

    Maybe geraniums 🤣



  2. Matthew Fumia on June 16, 2021 at 7:26 pm

    Don’t forget a towel.



  3. Diesel Dog on June 16, 2021 at 7:27 pm

    Is he drunk!?!? I can’t understand him



  4. alexhaskin on June 16, 2021 at 7:27 pm

    drink wine!



  5. systemdeadlock on June 16, 2021 at 7:27 pm

    US MSO’s!!!



  6. Doug on June 16, 2021 at 7:28 pm

    Buy buy trulieve curaleaf greenthumb cresco….big 4…



  7. Westley West on June 16, 2021 at 7:29 pm

    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!



  8. Alpha Status Stocks on June 16, 2021 at 7:30 pm

    Love your videos. Have you seen this?



  9. Jakir Malik on June 16, 2021 at 7:31 pm

    YOU CAN TELL HE SPITS AS HE TALKS..



  10. DJ Digital on June 16, 2021 at 7:31 pm

    I left the East coast plantation for Las Vegas. When l smoke 😤💨my weed I don’t have to look 👀for the Po-Po 🚓



  11. Treedom Finance on June 16, 2021 at 7:31 pm

    Aphria will become the next Altria



  12. pat white on June 16, 2021 at 7:31 pm

    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



  13. Joel Ruiz on June 16, 2021 at 7:32 pm

    $MJNA



  14. Tony Steel on June 16, 2021 at 7:33 pm

    Sleeper cannabis penny stock: CBDD



  15. Mike Beebe on June 16, 2021 at 7:34 pm

    POTX / THCX FTW.



  16. Luke Foster on June 16, 2021 at 7:36 pm

    I’m so high



  17. Igor Jovanovic on June 16, 2021 at 7:37 pm

    HCMC TO THE MOON 🚀



  18. Al Goreman on June 16, 2021 at 7:38 pm

    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 !



  19. Gutz on June 16, 2021 at 7:40 pm

    This guy talks loud. That is it!! why is anyone listening to HIM?!!!



  20. Scott Norris on June 16, 2021 at 7:46 pm

    They seem to be doing pretty good without federal legalization.



  21. Ashley Desiree on June 16, 2021 at 7:48 pm

    Why is he yelling at me? I think he likes Pinot…



  22. Tony Kowalski on June 16, 2021 at 7:51 pm

    Common Jim… You know some powerful people, Listen to them. In one week the markets going to tell you who will win.



  23. Emitor on June 16, 2021 at 7:52 pm

    This dude stumbles on his own words



  24. Paul Aguon on June 16, 2021 at 7:54 pm

    SNDL 0.14 to 0.54 volume was insane on Friday to the 🚀🌕



  25. Tom Tweak on June 16, 2021 at 7:54 pm

    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….



  26. phet Inthasanh on June 16, 2021 at 7:55 pm

    $CGC Jack it up Jim!!!



  27. Gary Gilstrap on June 16, 2021 at 7:55 pm

    A cannabis stock for under a penny? SGMD @t six shares for one penny!



  28. TheM0joDoj0 on June 16, 2021 at 7:57 pm

    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.



  29. Maitrik Patel on June 16, 2021 at 7:59 pm

    Planet 13 has a very good working model.



  30. Morgan Davies on June 16, 2021 at 7:59 pm

    Curaleaf!



  31. Robba Keef on June 16, 2021 at 8:00 pm

    He failed to address the question what would Lenny Dykstra do?



  32. Mark Paul on June 16, 2021 at 8:01 pm

    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.



  33. jeffjd1970 on June 16, 2021 at 8:01 pm

    I bought Aphria when it was $6



  34. Tasha's Travel on June 16, 2021 at 8:02 pm

    Thanks for the IIPR suggestion, bought when I saw this video at $117 and have made some good profits. Thanks Jim



  35. Ashen on June 16, 2021 at 8:02 pm

    I’m very much looking forward to my pot stocks increasing with the new presidency. 😁



  36. linda knight on June 16, 2021 at 8:04 pm

    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



  37. Jamie Murray on June 16, 2021 at 8:04 pm

    So what’s the legal limit for driving?



  38. Maga Jiu Jitsu on June 16, 2021 at 8:05 pm

    MCOA is a great stock to own



  39. Mack Tate on June 16, 2021 at 8:07 pm

    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



  40. Truong Ly on June 16, 2021 at 8:10 pm

    you already know im right here still smoking



  41. Rob Duck on June 16, 2021 at 8:12 pm

    Geraniums… Lol



  42. Rambis on June 16, 2021 at 8:13 pm

    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!!!



  43. Natural Technologist on June 16, 2021 at 8:14 pm

    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!



  44. Annex0006 on June 16, 2021 at 8:15 pm

    If you can grow outside then you can yield low cost. That’s the play



  45. Chris Molloy on June 16, 2021 at 8:17 pm

    Hi….. 😎



  46. Da Jo on June 16, 2021 at 8:17 pm

    SNDL 🚀🚀🚀🚀



  47. Jim Hitch on June 16, 2021 at 8:22 pm

    Planet 13 has a very good working model.



  48. Michael S on June 16, 2021 at 8:22 pm

    This guy is so beyond delusional its really sad



  49. Gerry Hildebrand on June 16, 2021 at 8:23 pm

    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!



  50. Wemdiculous on June 16, 2021 at 8:23 pm

    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.