When you travel around the world, you find that some places seem to be pumping out all kinds of new things. Connecticut is one of those places. If you have been following the news, you have heard that Connecticut has entered the legal market for growing recreational cannabis. If you have been asked what you should invest in, consider these two stocks.
It’s a new year and we all have a lot of things we want to accomplish in the coming year. One of them is saving money so one of those things most people have a hard time with is cutting back on the budget of their personal expenses. One thing that is very hard to do even for those with great incomes is cutting back on the budget used for their hobbies.
In the November election, Connecticut residents voted to legalize adult-use marijuana. While the legalization of marijuana was not a major issue on the ballot, it did generate some conversation in the weeks leading up to the election. Here’s a brief overview of the two marijuana-related ballot measures, and what they mean for those states that legalize marijuana.
Connecticut just became the 19th state. US state legalizes cannabis for recreational use. While this is not a game changer for the cannabis industry in the United States, Connecticut has a chance to become a billion dollar cannabis market in the next five years.
This creates a new major investment opportunity in the cannabis sector, and there are two major cannabis companies that have the best chance of benefiting.
Connecticut just announced big news for the American cannabis industry: State Governor Ned Lamont has signed a law legalizing recreational cannabis. Here are some details of the marijuana moment.
Connecticut’s governor signed the marijuana legalization bill into law on Tuesday, becoming the 19th state to pass the reform. The governor noted that neighboring states are also legalizing marijuana and said the new law will help Connecticut remain economically competitive.
Connecticut is the fourth state to legalize cannabis for adult use this year, following New York, Virginia and New Mexico. Under Connecticut’s measure, marijuana possession will become legal on January 1 for adults 21 and older. Legal July. Commercial sales of cannabis could begin as early as May next year, but the bill does not specify an exact date for the start of sales.
This is another victory for the American cannabis industry. Connecticut this year became the fourth U.S. state to legalize the sale of cannabis, and annual sales of cannabis (medical and recreational) are expected to exceed $1 billion over the next five years.
The Marijuana Fact Book predicts that annual sales of medicinal and recreational cannabis will reach $950 million by 2024. See the table below, taken from mjbizdaily.com.
2 Industry leaders ready to make money with Connecticut
Connecticut’s legalization is creating investment opportunities that cannabis investors should take note of.
#1 – Curaleaf Holdings (CSE: CURL, OTC: CURLF)
Curaleaf is the largest cannabis company in the United States, with a market value of $9 billion. Curaleaf is headquartered in Massachusetts and has one of the best national offices in the industry. The company operates in 23 states, has 101 local clinics, 22 cultivation centers, 30 treatment facilities and a patient list of over 350,000.
Curaleaf plays broadly into the American cannabis industry, but it’s also one of the best campaigns to capitalize on legalization in Connecticut.
Connecticut has issued four cultivation permits, Curaleaf has one. There are 18 medical cannabis licenses in the state of Connecticut, and Curaleaf has four.
Looking ahead, Curaleaf may apply for a recreational cannabis license in September. We expect Curaleaf to obtain these approvals, which will allow the company to convert its pharmacies to medical and recreational outlets.
Curaleaf shares enjoyed tremendous growth in 2020, but are now down 25% from their 52-week high.
Curaleaf Holdings (CSE: CURL, OTC: CURLF) 2-yearly chart
#2 – Green Thumb Industries (CSE: GTII, OTC: GTBIF)
Green Thumb is also one of the largest cannabis companies in the United States, with a market value of $6.5 billion. Green Thumb operates in 12 states and is licensed for 97 retail locations and 13 manufacturing facilities.
Green Thumb, based in Chicago, Illinois, is another major player in the United States cannabis industry.
Like Curaleaf, however, Green Thumb is an early leader in the Connecticut medical cannabis market. Green Thumb has one of Connecticut’s four cultivation licenses and two of 18 retail licenses. The retail permits will allow Green Thumb to apply for recreation permits in September, and we expect Green Thumb to receive those permits.
Green Thumb shares have risen sharply in 2020, but the stock is currently trading 25% below its 52-week high.
Green Thumb Industries 2-year plan (CSE: GTII, OTC: GTBIF)
Overview of legal transition in Connecticut
Connecticut just became the fourth state to legalize recreational cannabis by 2021, and the 19th. This creates a new opportunity for cannabis investors.
Curaleaf and Green Thumb are two of the early leaders in the Connecticut medical cannabis market. This gives both companies a chance to benefit from recreational sales in the coming years, which should be good for the stock.
Author Michael Vodicka owns shares in Curaleaf Holdings (CURLF) and Green Thumb Industries (GTBIF).
About the author and cannabis stock trading
Michael Wodicka is an equity analyst with over 20 years of trading and investment experience. His research has received attention in some of the industry’s most respected publications. He has been investing and managing investors in the cannabis sector since 2013.
Mr. Vodicka offers his experience and advice to Cannabis Stock Trades members.
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