January 2021 was a huge moment for the cannabis movement.
Joe Biden just became the forty-sixth president of the United States.
And cannabis reform was a key part of his agenda.
I wrote at the time that I expected it to happen by the end of the year.
Cannabis stocks rallied as federal reform seemed imminent.
The ETFMG Alternative Harvest ETF (NYSE: MJ) nearly doubled in a month.
But partisan gridlock killed the industry’s momentum.
By October, MJ lost all of its gains for the year.
Investors turned their attention toward other trends.
However, there’s renewed hope for cannabis reform.
And it comes from an unlikely source…
Cannabis Reform Has Broad Support
On Monday, Republican Rep. Nancy Mace of South Carolina introduced a bill to legalize cannabis.
Four other Republicans cosponsored the bill.
Yes, that’s right: Republicans are pushing for reform this time.
The States Reform Act would legalize cannabis for all Americans age 21 and over.
It would also place a 3% tax on all cannabis sales.
This move makes a ton of sense.
Midterm elections are just a year away, and reform has broad support.
A new poll by Gallup shows that 68% of Americans now support cannabis legalization.
Plus, 71% of independents support it.
Republicans know this is a key demographic heading into election season.
And in the Senate, 20 out of 50 seats held by Republicans are up for election.
If this bill passes, it would be a huge legislative win for the Republican Party.
The Cannabis Boom Hasn’t Started Yet
So far, cannabis stocks haven’t benefited from the news.
The MJ ETF is actually down nearly 15% since Monday’s open.
Investors might be wary this time after cannabis stocks crashed back in February.
Plus, skeptics could point to a bipartisan reform bill introduced in May.
It’s been six months now, and not much has happened with that yet.
But the political climate is more favorable for cannabis reform than in the past.
Lawmakers just introduced bills in the battleground states of Ohio and Wisconsin.
And as you can see in the chart below, 36 states allow medical cannabis (light green) or all cannabis use (dark green).
(Source: Forbes.)
So, it’s only a matter of time before cannabis becomes legal at the federal level as well.
The Pot Stock Leading the Industry
Ian King has been on top of this trend for a while.
In November 2019, Ian told his Strategic Fortunes subscribers to buy Trulieve Cannabis Corp. (OTC: TCNNF).
He called this U.S. cannabis company “the pot stock leading the industry.”
And he predicted it had the potential to hand his readers a 100% profit.
But they did a lot better.
TCNNF is up an incredible 198%, even after its recent decline.
The stock is now well above Ian’s recommended buy-up-to price. But that doesn’t mean you’ve missed this opportunity.
And you can keep up with Ian’s research by watching his presentation on the “New American Economy.”
In it, he explains why America is racing into an exciting new era of opportunity.
Regards,
Assistant Managing Editor, Banyan Hill Publishing
Morning Movers
From open till noon Eastern time.
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Macy’s Inc. (NYSE: M), the department store operator, is up 22% after reporting results for a great Q3. The company was not affected by supply chain problems and beat both top- and bottom-line estimates and even raised full-year guidance.
BJ’s Wholesale Club Holdings Inc. (NYSE: BJ), the membership-based retailer, is up 18% this morning on positive earnings news. It managed to beat analyst estimates for Q3 and announced a $500 million stock buyback program.
Victoria’s Secret & Co. (NYSE: VSCO), the specialty retailer of women’s clothing and accessories, is up 16% this morning. The move came after the company managed to grow sales and beat earnings estimates for Q3.
Arcus Biosciences Inc. (NYSE: RCUS) is a clinical-stage biopharmaceutical company that develops cancer therapies. It is up 14% on the news that Gilead Sciences has decided to exercise its options for three of Arcus oncology programs for $725 million.
Arrowhead Pharmaceuticals Inc. (Nasdaq: ARWR) develops medicines for the treatment of intractable diseases. It is up 11% on the news that Janssen Pharmaceuticals has started a phase 1 trial of an investigational compound it developed using Arrowhead’s proprietary platform.
ZTO Express (Cayman) Inc. (NYSE: ZTO) is a Chinese freight and logistics company. It is up 10% after delivering surprisingly strong results for Q3, with revenues meeting expectations and earnings exceeding estimates.
Atkore Inc. (NYSE: ATKR) manufactures and supplies metal products and electrical raceway solutions. The stock is up 9% after reporting results for a strong Q4 and full year with both a top- and bottom-line beat.
Nvidia Corp. (Nasdaq: NVDA), the computer graphics processor and chipset maker, is up 9% after reporting earnings for Q3. The company benefited from strong sales in its data center and gaming segments.
Alnylam Pharmaceuticals Inc. (Nasdaq: ALNY) is another biopharmaceutical company that focuses on RNA interference (RNAi) therapeutics. It is up 8% as it trades in sympathy with its rival, Dicerna Pharmaceuticals, mentioned earlier on this list.
