Related Editorial
Cannabis stocks just got whipsawed. The sector soared after the New Year when California legalized recreational marijuana. The following day the sector sank when the U.S. Attorney General Jeff Sessions rescinded the federal policy of non-interference with qualifying state marijuana laws, known as the Cole Memorandum. Mr. Sessions’ action sent shivers of uncertainty and confusion throughout the cannabis industry. At the heart of the conundrum is what to do about the millions of people who rely on non-psychoactive cannabidiol (CBD) as part of their personal care and wellness regimen. The hemp-based CBD sector looks to be the possible beneficiary of the current cannabis quandary. The Control Substances Act excludes certain parts of the cannabis plant, typically characterized as hemp, from the definition of marijuana. Companies that produce and/or market hemp-derived CBD products, like Marijuana Company of America, Inc. (MCOA) (MCOA Profile) are well-positioned to possibly garner increased traction in product sales. Other hemp-focused companies, including United Cannabis (CNAB), AmeriCann (ACAN), General Cannabis (CANN), and PotNetwork Holding, Inc. (POTN) (POTN Profile), may also weather potential legal issues caused by uncertainty.
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