Big Rush For Medical Marijuana Users To Stock Up Ahead Of Recreational Legalization
CHICAGO (CBS) — There is a rush for medical marijuana users to stock up before the crush expected Wednesday, when recreational cannabis becomes legal.
As CBS 2 Political Investigator Dana Kozlov reported, some cardholders fear they will be left in the weeds when the law changes.
Privacy is still a concern – so we didn’t show you the line at the Sunnyside* Dispensary in Lakeview, which remains a strictly medical dispensary until Wednesday.
But there was quite a line there, as those with medical marijuana cards showed up in droves to stock up before sales to the public begin Wednesday.
“There’s a lot of people in line that are nervous about getting what they need, because January 1, we know that this is going to be a whole different scene,” said Jason – last name withheld.
Jason uses medical marijuana for gastrointestinal and mental health concerns. Matt Lancor uses it for concussion-related issues and post-traumatic stress disorder.
“I think the reality is there’s going to be shortage of products they can create for, you know, the foreseeable month,” Lancor said. “It takes, you know, three months to grow a crop of this stuff. It’s not like we can just go and make some tomorrow.”
Both say it helps them immensely.
“I’ve been taken off other medications to go onto the medical marijuana products, and so to be off of the other medicines to go onto this, to now have an issue trying to get this, could become a problem,” Jason said.
“We’re restocking our shelves. We’re putting processes in place to make sure that things run really efficiently on January 1,” said Jason Erkes of Cresco Labs, the parent company of Sunnyside* Dispensary.
And Erkes says that’s not all. Illinois state law requires that dispensaries set aside supply for medical marijuana card carriers.
Medicinal users will also pay way less in taxes. For example, a $100 product purchase for a cardholder will cost $105 with tax in Chicago, compared with $132.50 for a recreational buyer.
Some dispensaries also plan to give first priority, and even separate lines, to those holding a medical marijuana card.
Medical marijuana patient Jason hopes it will alleviate a runaround.
“To have to go to try and find what you need at all these different places along – it isn’t going be fun,” he said. “It’s not going to be easy.”
So if you’re wondering, experts say there is still a reason to keep or get that medical marijuana card if you need it.
There is a rush for medical marijuana users to stock up before the crush expected Wednesday, when recreational cannabis becomes legal.
Top Marijuana Stocks for November 2020
VFF.TO, JUSH, and GRWG are top for value, growth, and momentum, respectively
The marijuana industry is made up of companies that either support or are engaged in the research, development, distribution, and sale of medical and recreational marijuana. Cannabis has begun to gain wider acceptance and has been legalized in a growing number of nations, states, and other jurisdictions for recreational, medicinal and other uses. Some of the biggest companies in the marijuana industry include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Tilray Inc. (TLRY). Many big marijuana companies have continued to post sizable net losses as they focus on investing in equipment to speed up revenue growth, which remains strong despite the pandemic-spurred economic downturn.
On November 3, 2020, voters in New Jersey, Arizona, and Montana approved ballot measures to legalize recreational marijuana, and Mississippi has voted to legalize medical marijuana use. South Dakota, approved ballot measures to approve both.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market. MJ has provided a total return of -42.5% over the past 12 months, well below the Russell 1000’s total return of 15.6%, as of October 27, 2020. All statistics in the tables below are as of October 28.
Here are the top 3 marijuana stocks with the best value, the fastest growth, and the most momentum.
Best Value Marijuana Stocks
These are the marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For young companies that have not reached profitability, this can provide an idea of how much business you’re getting for each dollar invested.
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing standard vegetables like tomatoes, bell peppers, and cucumbers, the company now also produces cannabis.
- Aurora Cannabis Inc.: Aurora Cannabis is a Canada-based company engaged in the production, distribution, and sale of cannabis products. The company announced on September 8 the appointment of Miguel Martin to the role of Chief Executive Officer (CEO). Michael Singer, who was serving as Interim CEO, stepped down from his temporary role, but will remain the company’s Executive Chairman.
- Harvest Health & Recreation Inc.: Harvest Health & Recreation is a Canada-based cannabis company that specializes in cultivation, dispensaries, and production facilities for medicinal and recreational marijuana.
Fastest Growing Marijuana Stocks
These are the marijuana stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales show that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.
- Jushi Holdings Inc.: Jushi Holdings is a holding company focused on building a portfolio of branded-cannabis and hemp-based assets engaged in retail, distribution, cultivation, and processing operations. The company announced at the beginning of October preliminary revenue estimates for Q3 2020, which ended September 30, 2020. Jushi expects record third-quarter revenue of $24 million.
- Neptune Wellness Solutions Inc.: Neptune Wellness Solutions is a Canada-based integrated health and wellness company. The company is focused on building a portfolio of natural, plant-based consumer products, including cannabis and hemp.
- Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the highest total return over the last 12 months.
These are the marijuana stocks with the best value, fastest growth, and most momentum for November.