For the first time since the 1970s, the U.S. government recognized the medicinal value of cannabis, opening up the possibility of marijuana’s reclassification from a Schedule I to a Schedule III substance. But Howard Penney says even if the substance is reclassified, it won’t spark the immediate industry boom some are anticipating.
“It is significantly positive news for the industry, but it is not the ‘all clear’ to blindly buy these stocks and think you’re going to make a fortune,” Hedgeye’s Consumables explained on The Call @ Hedgeye this morning.
Cannabis stocks will react to the possibility of a key tax burden going away with reclassification, but this does not end prohibition.
“You’re going to have buzzing speculation that the U.S. cannabis companies will uplift the major stock exchanges,” he added. “That’s not going to happen.”
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