The rest of the media might not pick this up, but this is a big moment for cannabis stocks…

Vivien Azer – the Managing Director of Cowen Inc. (Nasdaq: COWN) – may have started a huge wave of new investments in the cannabis industry.

She’s a formidable analyst who just predicted Cresco Labs Inc. (CSE: CL, OTC: CRLBF), Green Thumb Industries (CSE: GTII, OTC: GTBIF), and Curaleaf Holdings Inc. (CSE: CURA, OTC: CURLF) would outperform the market. She expects Acreage Holdings (CSE: ACRG, OTC: ACRGF) to perform with the market and MedMen Enterprises Inc. (CSE: MMEN, OTC: MMNFF) to underperform.

Anyone should at least read her report, even if they end up disagreeing with her.

But the big news isn’t that she just rated cannabis stocks.

It’s that these are U.S. cannabis companies that “touch the leaf,” and that Cowen was willing to rate them.

As best I can tell, this is the very first time that a major Wall Street firm has rated stocks that are technically in violation of U.S. law.

Previously, Ms. Azer and her counterparts at Merrill Lynch, Jefferies, Piper Jaffrey, and other Wall Street companies only rated “fully” legal companies. That means producers in Canada and U.S. companies that did not touch cannabis directly, like KushCo Holdings Inc. (OTC: KSHB).

I’ve previously written that these Wall Street firms would not begin to cover the U.S. participants until there was some movement by the federal government towards legalization.

Azer and the compliance team at Cowen proved me wrong.

And I’m going to tell you why I couldn’t be happier…

The Importance of Wall Street Accepting Cannabis Stocks

Azer and Cowen showed a lot of courage to do what they did by rating stocks.

Cowen is a highly-regulated investment bank. It has to satisfy federal regulators from multiple agencies, and it has to be completely compliant in all of its dealings. Recommending the purchase of stock in a federally illegal business could upset relationships with regulators.

But the courage from Cowen will spur others to act.

Expect even larger investment firms, like Merrill, to include U.S. companies in their cannabis coverage in the next few weeks.

That’s because when big institutional investors start buying cannabis stocks, they are going to call places like Cowen. Sure, they do their own research, but that often starts with a call to someone like Vivien asking, “Hey, what do you think of Cresco?”

Armed with those analyst reports and with the fact that the investment banks are willing to publish them, portfolio managers will start to go to their boards and explain that they have to get into the cannabis investing area.

They can’t continue to ignore the fastest-growing industry in the world because their peers are no longer ignoring it.

It’s a simple fact that when a new investment opportunity opens up, you don’t want to be the one that gets left behind.

As I’ve written before, it is these big, long-term investors who will provide a lift for cannabis stocks once and for all. When demand for cannabis stocks increases because of the purchasing power of these huge institutions, prices will skyrocket.

The day when that happens may be a little closer now, thanks to Vivien Azer.

Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. In less than six months, the cannabis IPO record has been broken three times. The record-holder to date is Curaleaf, IPO’ing at $4.5 BILLION. That number – combined with Azer’s prediction – may mean you’ve missed your shot at pocketing major cash on Curaleaf, but our experts have identified six companies with the potential to create up to $5 billion each in new wealth for investors. But for a chance to get the kind of returns you could’ve seen on Curaleaf, you need to learn more before these companies IPO.


Comments

20 responses to “U.S. Cannabis Companies Receive Crucial Recognition from Cowen”

  1. I’m happy to hear the companies she’s picked to outperform, but I’m down 35% in Cresco and watch it tumble farther each day. Do I just hang on trying to break even, or take my loss and buy something else?

    • I was thinking of getting in on Cresco today but why the drop yesterday. Is not the merger on tract and favorable with antitrust? Is it b/c of the extension. ?

    • I gained at least $2000 on Cresco, and sold half of it before it started falling. I haven’t lost anything but I’m still holding Cresco because it is one of the best in the world. Political “noise” hurts even the best companies. But disregard that noise (Ross Perot callled it “gorilla dust.”) We know for sure the US gov. will legalise cannabis because it creates way too much tax revenue. Politicans will always choose revenue over their “principles. Hang on – we will win this sooner than you think.

    • Patricia,
      Not too tough, just pull up a list of all the weed stocks in America and in Canada, look at their financial state and what they produce then invest in one that is solid with room to grow and/or makes a thing you are interested in seeing excel.
      No person has a lock or a crystal ball, nobody, so we are all just looking for that solid thing with legs. Maybe overused, but the term “due diligence” applies here well.
      Good luck.
      Vince

    • pick a broker. TD Ameritrade is good. Set up an account with them and fund it from your checking account. They have free transfer services. So, decide the amount you want to invest in each position you buy. Take that amount and decide by 4 to get your position amount, ie., 1/2 pos. purchase. All can be done online, and they will assist you !

  2. Even as our stock prices just lay there barely moving, I have not lost sight of the emerging market and still realize our babies..( portfolio).. is getting ready to crawl and then stand on their own before walking and finally running!!! EXCITEMENT is how I feel about this article Mr. Miller.

  3. Weed.
    Just get out of the way Big Brother.
    Americans know better than you.
    Humans with empathy can convince those without empathy and then we all score!
    Plus, I have been financially depressed way too long to suit me and am appreciative of the group doing the work here that I believe will get me that 1 sq. mi. of land we need to produce more CBD.
    Thanks again y’all.

  4. These stocks are just going up and down until a big Pharma, banking act or states act gets past the Senate. Every little piece of bad news or drop in the leaders like CGC, ACB or CURA drag the rest down with them. And then there are those little hiccups like CTST that lower the tide for everyone 10%-20%. How much will the vaping issue pull things down. I think it best to hold your cash and wait until one of these events happens. A positive event and you miss the beginning but get the rest of the wave. Don’t buy on bad news thinking prices have gone down to a buy point because this market has proven it can go lower. And we have October coming up and it is not just Halloween that makes this month scary.

  5. No one has yet to go give us a list of stocks we should be careful of due to the vaping issue. Which of our portfolio especially should we watch. NICI should provide this.

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