This State Is About to Give the Top Cannabis Stocks Their Next Major Catalyst


Risk on, risk off. Who cares?

The market can’t seem to make up its mind these days, and that is fine by me.

The volatility is creating opportunity in my favorite sector to own for the long term: cannabis stocks.

One of my top cannabis stocks, Canopy Growth Corp. (NYSE: CGC), took another leg lower during the recent spate of selling on Wall Street.

In the last week alone, shares have dropped nearly 25% after reporting disappointing earnings.

The only problem is the market already knew the news would be disappointing. And besides, owning Canopy is not about today. It’s about tomorrow.

Nothing in the story changed with earnings, yet investors today can buy this top cannabis stock at an extreme discount.

In total, Canopy is down more than 50% from those highs.

THREE STOCKS: Any one of these cannabis companies could potentially deliver a 1,000% windfall. Click here to learn more

Looking forward, there is nothing but catalyst after catalyst for Canopy and other cannabis stocks.

Where cannabis has been legalized, demand is through the roof.

In Ontario, Canada, the government conducted a lottery to award 42 new cannabis stores in the province. A whopping 4,800 people or companies applied.

The odds of winning a coveted license to operate were slim, but that didn’t deter those trying.

Why?

Because cannabis is a moneymaker, and it will only get better.

Extending legalization across the border in the United States has been a slog; there’s no denying it.

But the tide is changing one state at a time, and that only bodes well for top cannabis stocks like Canopy.

Now one of the largest states, Florida, looks to be next.

It was in 2016 that the sunshine state legalized medical marijuana.

There appears to be a ton of momentum for full recreational use legalization next.

A political action committee, Make it Legal Florida, has already formed in support of recreational marijuana in the state.

The key will be getting it on the ballot for 2020.

Advocacy group Regulate Florida has some 83,000 signatures gathered proposing legalization be placed on the 2020 ballot.

That’s enough to get the ball rolling. To get on the ballot officially would require over 700,000 signatures.

There certainly seems to be enough grassroots effort to make that happen.

In 2016, the medical marijuana amendment passed with 71% of the vote.

It would seem that the only hurdle in front of full legalization in Florida would be politicians, but even their resistance seems to be fading.

It is not a matter of if Florida becomes the next domino to fall in the move to full legalization of pot, but when.

And when it does happen, what an opportunity for top cannabis stocks like Canopy.

And these are the cannabis stocks that will be best positioned to profit…

These Top Cannabis Stocks Will Soar Following Florida’s Legalization

Florida is a gold mine full of the sort of demographic, mainly older citizens, looking to extend their quality of life.

Marijuana does that in a variety of ways, without the side effects of traditional medicines.

Future sales could be massive as legalization grows like crazy across the states and the rest of the globe.

At today’s prices, Canopy has a valuation of just over $8 billion.

That could easily double in a few short years.

Not bad, considering the rest of the market looks to be in a washing machine cycle of money simply sloshing around and not really going anywhere.

The selling in Canopy in the near term only makes the future brighter and richer for those who buy the stock today.

Another favorite top cannabis stock that will share a similar fate is Tilray Inc. (NASDAQ: TLRY).

Similar to Canopy, shares of Tilray have collapsed in 2019.

In mid-January, the stock traded for more than $100 per share.

Today, shares trade below $30 each.

That is a stunning decline that accelerated in the last week as earnings reports disappointed investors.

But remember: We’re not buying a marijuana stock for near-term earnings performance.

That’s why this last round of selling is a real head-scratcher.

Looking forward to Florida being the next big state to legalize the future and beyond is bright for top cannabis stocks.

While the earnings report for Tilray disappointed, the company announced it expects to be profitable soon.

Sure the near-term losses are big, but getting a leg up on competition requires such investment.

Tilray is poised to benefit from big catalysts like Florida going legal.

With a 70% discount to prior valuations, Tilray is a strong buy today.

So are any top cannabis stocks, given what is coming down the road.

These 3 Stocks Are the Key to 2019’s Greatest Profits

The 2018 midterm election was a turning point for the cannabis industry.

We expect nothing short of historic profits by the end of the year.

But not all pot stocks will hand you life-changing wins. In fact, often the companies making headlines are least likely to see the biggest gains.

These three stocks, on the other hand, are flying under the radar… for now. Each of them could see exponential stock price acceleration at any moment, and if you get in before that happens, you could turn a token stake into a lifetime of wealth.

I don’t know of any other sector providing anywhere near this level of growth now.

Click here to learn more.

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Source: Money Morning


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