Biden won the election, so the market is increasingly confident that restrictions on marijuana consumption and distribution will loosen up. It’s less about Biden and more about Harris. She’s a big fan of legalization, as is most of the Democratic base. This isn’t big news, but the question is where to put your money. You can go for small, spec stuff like OGI or the ‘big names’ like TLRY, CRON, and CGC. They are all running and tend to trend together. So, I’m keeping it simple by approaching it from four angles: Store front, real estate, FOMO and medical. I can’t trade everything in this industry, so I’ve gotta stick to sectors within the sector that I can wrap my head around.
My current position:
IIPR – I’ve been in IIPR for a while and it’s paid off well. This is the real estate approach and there is a good chance that I will add on pullbacks. This has been a solid REIT paying out a dividend around 3%.
Others I’m Watching
From a medical marijuana standpoint, I’ll likely take a position in GWPH. I’ve traded it before, but its chart is a little erratic, so it’s a difficult buy and hold.
My store front pick is a spec that will rely heavily on Vegas coming back (post covid). If we get a vaccine or there are signs that Vegas is opening, I’ll take a spec position in PLNHF.
My FOMO pick is CGC. They report on Monday before the bell, so I might buy TLRY early Monday instead because they report after hours.
This is going to be another crazy week for the marijuana industry. Even Cramer is pumping the industry and put his support behind GTBIF. Stay nimble.