Grown in the U.S.A

The United States of Cannabis takes shape

Remember last month when we summoned serenity and discussed Dead Calm before pondering the pivot, setting the stage and counting the courts? We tried to keep our eye on the prize throughout the deft drawdown / look ahead to the generational opps.

Despite the signals and signs that continue to surround us, w societal trends, cultural norms, red states, blue states, and other countries increasingly critical of The War on Drugs, cannabis remains the central ingredient of our modern-day political hypocrisy.

But progress is being made, slowly but surely, on several important fronts…

…including, most importantly, the inside-out legalization of these United States…

…and corporate America has begun to climb aboard, most recently with Amazon’s high profile policy shift / vocal support of all things cannabis…

…and now Apple, who announced last week that canna delivery apps will be able to operate on their platform so long as they’re geo-restricted to legal jurisdictions…

But what about the stocks? Good question. Since we last spoke, we’ve had quarter-end window-dressing, third-quarter inflows, Canada Day (which matters given U.S canna stocks are listed on the CSE) and the U.S holiday Monday; oh, Happy 4th btw!

If you’ve been watching U.S canna fundies improve as stock prices decline and thought to yourself, “What am I taking crazy pills?” you’re not alone. In fact, Needham analyst Matt McGinley offered similar vibes last week when he said the quiet part out loud…

…while Curaleaf Chairman Boris Jordan echoed recent vibes about the likelihood of incremental movement at the federal level to supplement the state-level adoption that continues to drive the economic / employment / social justice engine.

[note: Boris alluded to the potential Q2 demand dip we discussed last week but with additional capacity coming online in 2H21, the tri-state area next year and MD, PA, FLA, OH etc the following years, our plan is to see through any transitory softness]

While we need to see the final language of Schumer’s draft before making an educated assessment, we expect it’ll coalesce federal policies around the existing state-level infrastructure (given states will control who can grow, processes, and sell cannabis).

And IF (big if) Schumes attaches incremental language, presumably SAFE+, to must-pass legislation by September, as several insiders recently speculated, aggressive funds may try to front that flow / jump the line before institutions bum-rush the space.

And let’s be clear, while none of us wanna profit off other people’s pain…

Some truths are hard to ignore…

…other truths are still evolving…

…and if we’re right, still other truths will change lives and shape fortunes.

Just remember to sync your time horizon and risk profiles, keep an eye on the trading volumes (as they’ll qualify price) and be good to others and better to yourself. This is an exceptional time to be alive; what we do with it, and how, is up to each of us.

Note: Canna4Good (<-please click here) is a canna-friendly brand that allows you to choose your cause (on checkout) / get some really soft schwag to support your cause.