Commodities and Gold

Regulatory Risk Recedes

Cannabis enthusiastically applauded the Georgia vote. A few more senators in either direction won’t necessarily help the industry, but the threat of an unfriendly Department of Justice cracking back down seems extremely remote now.

Laws recriminalizing cannabis are not going to get passed for at least another two years. Instead, we may see a few tentative efforts to lighten the regulatory load.

That’s a good thing for the cultivators, and they’re all leaping to greet the new year. Canopy Growth Corp. (NASDAQ:CGC) may even be my favorite right now.

But Tilray Corp. (NASDAQ:TLRY) and especially Innovative Industrial Properties Inc. (NYSE:IIPR) are right behind it as far as big companies go.

IIPR is especially interesting, because it doesn’t grow or sell the plant. It is a real estate investment trust (REIT) that has been set up to own the cannabis-growing facilities, charge rent and pass the income on to shareholders.

Yes, it pays a 2.8% dividend, which is otherwise extremely hard to capture in this space.

And I’ve got to shout out the tiny next-generation cannabis stocks on my IPO Edge buy list. While established pot portfolios are still trying to pull it together after a few miserable years, these stocks are soaring.

We’re up 40-80% on these stocks since the election. What’s not to love?

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. The Financial Times describes Ms. Kramer as “A one-woman financial investment powerhouse” and The Economist distinguishes her as “one of the best-known investors in America”. Ms. Kramer is often quoted in publications such as the Wall Street Journal, New York Post, Bloomberg, and Reuters. She is a frequent guest commentator on CNBC, CBS, Fox News and Bloomberg, providing investment insight and economic analysis. Ms. Kramer was an analyst and investment banker at Morgan Stanley and Lehman Brothers. Ms. Kramer founded and ran a long-short hedge fund and has been chief investment officer overseeing debt and equity portfolios. Since 2010, Ms. Kramer’s financial publications have provided stock analysis and investment advice to her subscribers. Her products include GameChangers, Value Authority, High Octane Trader, Triple-Digit Trader, 2-Day Trader, IPO Edge and Inner Circle. Ms. Kramer, a Certified Fraud Examiner, has also testified as an expert in investment suitability, risk management, compliance, executive compensation, and corporate governance. Ms. Kramer received her MBA from the Wharton School at the University of Pennsylvania and her BA with honors from Wellesley College. Ms. Kramer has provided testimony regarding investment policy to the U.S. Senate and is a frequent speaker on the markets, portfolio management and securities fraud and compliance. Ms. Kramer is also the author of “Ahead of the Curve” (Simon & Schuster 2007) and “The Little Book of Big Profits from Small Stocks” (Wiley 2012).