Now let us address the green, pungent, red-eyed elephant in the room.
Investors are known risk takers; but to buy in there must be a sense of security or inkling of future profits. The token rule is Risk equals Reward, but to what degree? Such superstar stocks like GW Pharmaceuticals have received much media and notoriety because of their business model, product quality, and mostly the publicly known legal standings of the company. Legislative agencies and politics have this astounding effect on companies to make them excessively attractive because of the security granted making any investor feel their investment is safe.
Being based out of The United Kingdom; GW Pharmaceuticals plays by a different set of rules than our American companies. Here in the states we find countless hurdles and reasons inked in grey as to why Marijuana based stocks aren’t blue chip status.
With Marijuana recreationally legal in 2 states and medically available and or decriminalized in almost half of the county and in this 2016 upcoming election even more states will have Marijuana reform on the ballot. Seems we are turning a new leaf; with all of this “acceptance” it seems like a safe bet, right?
Wrong, and here’s why.
Stagnant in the confusion of hypocrisy and political uncertainty, the market as a whole faces a brick wall. Although now decriminalized, allowed, or legal on a state level and overwhelming supported by the people, many of these companies face the threat on their SWOT analysis of vending a Schedule I drug such as LSD and Heroin according to Federal law and the consequences implied. The DEA defines Schedule I drugs of having NO MEDICAL USE. The confusion derives from the term Medical Marijuana. Here comes the grey area; Medical Marijuana is allowed on a state level but not federal. The centuries long debate of state rights versus Federal law. Now ask yourself, are you willing to take a bet against the Federal powers or the constitutional rights of each state granted by said Federal Government? Perplexing now that its on paper isn’t it?
Recently President Obama declared that federal dollars would not be spent encroaching on state rights; many thinking this statement was directed to the marijuana industry, although no specifics were ever confirmed. Unfortunately we still read and hear stories of oppression toward cannabis through raids, arrest, and even legislative limitations on the state level such as those in New Jersey. Governor Chris Christie of New Jersey has flip- flopped on the issue since he ignited this issue with a young child named Vivian. Her story was featured on CNN’s Documentary “Weeds 2”, the encore to the eye opening special feeding the curiosity of what the marijuana market is really like and who is benefitting on a personal level. In short New Jersey has very few dispensaries, now under reform, and very few patients. Noted in CNN’s Weeds was the lack of knowledge and routes of administration provided in these dispensaries; there was no sense of purity and consistency, even to me that doesn’t merit any type of medical care. This conundrum only adds to the confusion.
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