This remains an important player with high-growth prospects going forward.
Real Estate Becomes Even More Important
A federal law that opens up the cannabis industry would have massive effects. But that doesn’t mean D.C. is quick-moving.
One of the most likely scenarios for any kind of cannabis law would be a simplified decriminalization or legalization.
The regulations themselves that actually begin allowing the production and sale of marijuana will take a lot longer.
That plays into the hands of companies that have already profitably navigated the state-by-state regulations. Specifically, the companies that own the facilities and production of cannabis at the state level.
One company, which I’ve shared before but remains a central player in this ancillary industry, is Innovative Industrial Properties Inc. (NYSE: IIPR).
IIPR is a real estate investment trust (REIT) with 67 properties in 17 states. It leases these facilities to growers for the production of cannabis.
This model will continue to benefit regardless of what Congress does.
The final area worth paying attention to is brand new. In fact, only last month did it even become a real industry at all.
Cannabix Technologies Inc. (OTC: BLOZF) received the first U.S. patent for a THC breathalyzer.
That’s right, just like alcohol, police need to be able to test if someone is under the influence of marijuana. That too applies to heavy equipment workers, schools, etc.
Cannabix, a tiny over-the-counter play from Canada, just got a patent for its rather bulky breathalyzer prototype.
That’s the keyword: prototype. The company isn’t even close to full production of this product. So, despite its massive post-patent rally, it remains a wildcard.
It is also not the only player in the game. Just the first publicly-traded company with a patent for its potential first-to-market breathalyzer.
It’s too early to recommend this one. But it could end up the biggest of the three. And it certainly deserves to be on any watch list.
One final note: all three of these pot-adjacent players have done well in the run-up to potential legislation. But none of them require it to continue their successes.
While Wall Street is simultaneously backing growers and sellers of marijuana, these three offer some protection if those legalization efforts are slow to come.
To your prosperity and health,
Joshua M. Belanger
Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%
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