Some of the best performing stocks from 2015 are starting to see a turnaround. Even as many states have legalized marijuana for either recreational use and/or medical use in the recent elections, there has been some very worrying signs that the Federal government is not too keen on any further legalization anytime in the near future.
At the end of February, Attorney General Jeff Sessions made some comments that pulled the rug out of the bullish sentiment for many of the “pot” stocks. During a press conference at the Department of Justice, he said, “I don’t think America is going to be a better place when people of all ages, and particularly young people, are smoking pot.” He went on with, “I believe it’s an unhealthy practice, and current levels of THC in marijuana are very high compared to what they were a few years ago, and we’re seeing real violence around that.”
Then, a few days later Sessions said he had a meeting with the attorney general of Nebraska, who has been know for his concerns about marijuana flowing in from Colorado. “Experts are telling me there’s more violence around marijuana than one would think and there’s big money involved,” he argued.
Listen to: The Disciplined Investor Podcast # 498 – The Marijuana Market for some great insights.
It is not clear if any action will be taken by the federal government at this time, but the current administration appears to be leaning on the side of more oversight and less leniency on the subject of marijuana. Whatever unfolds, if anything, will be of interest to many of the stocks on the list below.
These are the names that we track related to this industry. Some are directly involved, while others on the periphery.