The Best Cannabis Stocks to Own before Rescheduling

The best cannabis stocks have come and gone.

I know it’s not what a lot of people want to hear, but it’s true, nonetheless.

This doesn’t mean you can’t make money in the cannabis space. You absolutely can. And in a moment, I’ll give you a list of the best cannabis stocks to own right now.  But before that, let me explain why you shouldn’t expect to land much in the way of big gains in the cannabis space.  And when I say “big gains,” I’m talking about gains in excess of 500%.  I don’t really consider anything less than that to be “big.”

If you’re a regular reader of these pages, you know that one of our mottos is “we get to the good grass first.”  To be sure, this isn’t something we just randomly came up with.  This is something that has long served as a bedrock of our investment strategy.  And it’s something that has allowed us to make a boatload of cash in the cannabis space. Back when it was still considered the “good grass.”  No pun intended. 🙂 

The year was 2014, and I heard that some large investments were being made in a few cannabis companies in Canada.  At the time, cannabis was legal in Canada — but strictly for medical purposes. 

However, when I started investigating these large investments, I came to realize that they were being made by some very wealthy individuals.  Individuals that were fairly well-known in the investment community.  Mostly venture fund managers and multi-millionaire angel investors.

What made this investigation particularly intriguing was that most of these investments had begun pouring in about a year before Justin Trudeau was elected.  Trudeau was championing legalization at the time.

It wasn’t hard to put the pieces of this puzzle together.  So in an effort to get to that good grass first, I recommended to our readers that they start taking positions in a few of the stronger, well-funded cannabis producers in Canada.  The result?  3 years later, we locked in three of the biggest gains in my career — all from cannabis stocks…

• Aphria (TSX: APHA) — up 1,174.34%
• OrganiGram Holdings (TSX-V: OGI) — up 1,185%
• Canopy Growth Corporation (TSX: WEED) — up 3,015.63%

That is what I mean when I say “big gains.” And while I remain bullish on the  legalization of cannabis in the U.S., you’ll never see gains like that again in the cannabis space. 

But not every gain is going to be a quadruple-digit gain. And while that ship has sailed, there are a few cannabis stocks that can still make you a lot of money.

The Best Cannabis Stocks to Own for 2024

After the big run on cannabis stocks, the market has been fairly quiet. Some cannabis stocks have done well, some haven’t.  But there really hasn’t been a big catalyst to move these stocks for a long time.  That, however, could soon change.

Last month, the Biden administration formally proposed moving cannabis from a Schedule 1 drug to a Schedule 3 drug.  This wouldn’t make cannabis possession legal, but it would allow for one big change that would make some of these cannabis stocks very attractive.

You see, under the Schedule 1 classification, cannabis companies pay taxes on their gross income instead of their net income.  They can’t take the typical deductions any other company can.  And this is one of the reasons why margins are so razor thin in the cannabis industry.  But if these companies can finally start utilizing the same deductions other companies take, you’re going to see the valuation of some of these cannabis stocks soar. 

These include…

• Curaleaf Holdings (OTCBB: CURLF)
• Cresco Labs (OTCBB: CRLBF)
• Trulieve Cannabis (OTCBB: TCNNF)
• Green Thumb Industries (OTCBB: GTBIF)
• Verano Holdings (OTCBB: VRNOF)

To be sure, these stocks will get a nice boost if cannabis is rescheduled. But with these companies being able to finally utilize typical tax deductions, there will now be a more bullish sentiment on the long-term value of these companies.  So you can either play the news for a quick score, or go long. The latter will likely make you a lot more money over the course of the next couple of years. 

Either way, the rescheduling of cannabis may not be the perfect scenario in terms of the freedom to consume cannabis the way most of us consume alcohol. But for investors, it will offer you the opportunity to make some decent coin.  And let’s face it: that’s why you’re here.

Of course, if pot stocks aren’t your thing, but you’re still looking for another way to make some good money, you may also want to consider this new bitcoin loophole strategy that allows you to tap into the meteoric growth of bitcoin without actually having to own any of it.

This particular opportunity has already soared in value by more than 6,800%, turning a $5,000 stake into more than $348,200.  This is even better than the 3,015.63% I helped Energy & Capital readers land from that one cannabis stock I told you about earlier.

I have to be honest, though. I’m not an expert in bitcoin, but my good friend and colleague Brian Hicks is. And his latest research note highlights this opportunity, and even shows you exactly how you can start getting a piece of this action for yourself — right now. 

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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