Perhaps It Is Time to Buy Cannabis Stocks

Yesterday, I shared a blog at Seeking Alpha: This Is Not A Bad Time To Invest In Cannabis Stocks.

A graphic that I included was the three-year chart of the New Cannabis Ventures Global Cannabis Stock Index:

The index closed yesterday at 10.27, which leaves it up 26.6% in 2024. In the piece, I explained why the market has been rallying (cannabis rescheduling, which is likely and which would eliminate a horrible tax, 280E). The market got ahead of itself on 4/30, the day that the DEA said it would be rescheduling cannabis soon. The market has pulled back sharply since then. Yesterday, the DEA released the document and began a public commenting period that runs through mid-July.

While the index is up a lot in 2024, it is down almost 89% since the peak in February 2021. It's pretty easy to find a cannabis stock that is way down! I like buying stocks that are down a lot, but I warned readers again to avoid Canopy Growth (CGC) and Tilray Brands (TLRY) in Canada and Curaleaf (CURLF) in the U.S.

The reason I wrote that article is that I have been very cautious, as cannabis stocks were running up ahead of the DEA news, which still may fail. I know that people are getting more interested, and my own view is that there are lots of attractive stocks. I described my services, including 420 Investor, which I have been running since 2013 (at Seeking Alpha now). I launched a sub-service earlier this year, The Big Picture, and it offers several things for a lot less money (and less of time commitment). Finally, I continue to write articles each week at Seeking Alpha that are free.

So, I am not pounding the table and screaming buy right now, but I do want to encourage folks to invest their time getting to know the cannabis sector. I have written about Organigram (OGI) here, but Seeking Alpha is the place where I focus my time and effort. I did start 2024 with my first cannabis piece here, where I shared my perspective on the 26 stocks I was following closely at the time and how the market might play out this year. I have dropped my close coverage of three stocks and now include 23 stocks on my Focus List.