Marijuana needs to be legalized...
At least that's what the editorial board at the New York Times
thinks. On July 27, the newspaper published an op-ed titled "
Repeal Prohibition, Again
." In the piece, the board provided a laundry list of reasons the
United States government should make pot legal at the Federal
Said The Gray Lady:
"The federal government should repeal the ban on
We reached that conclusion after a great deal of
discussion among the members of The Times' Editorial
Board, inspired by a rapidly growing movement among
the states to reform marijuana laws.
There are no perfect answers to people's legitimate
concerns about marijuana use. But neither are there
such answers about tobacco or alcohol, and we believe
that on every level -- health effects, the impact on
society and law-and-order issues -- the balance falls
squarely on the side of national legalization. That
will put decisions on whether to allow recreational or
medicinal production and use where it belongs -- at the
We've been following the marijuana story at StreetAuthority
for over six months now. We first mentioned it in our
February 28 issue
, when we said that due to marijuana's conflicting legal status,
Colorado -- where the recreational use of marijuana was legalized
earlier this year -- is serving as "one giant experiment for the
full scale legalization of pot in the U.S."
As we told you then...
"[Marijuana] dispensaries -- or "compassion clubs,"
as they're sometimes called -- have created a very
That's because according to federal law, the
possession and distribution of marijuana is still
considered a crime. That means if the government
wanted to, it could raid each and every one of these
businesses, seize their assets, and haul the owners
off to jail.
But they don't -- because, despite what many
people think, U.S. officials aren't that stupid.
They've seen what happens when the government
tries to force unwanted regulation down people's
throats (think 1933 and the repeal of the Volstead
Act, which ended Prohibition). That's why the feds
have basically said they won't prosecute anyone who
buys or sells marijuana in a state that has legally
But make no mistake... this dichotomy won't last
long. You can't have two legal codes -- both of which
are supposed to operate in unison -- in direct
conflict with each other. Something is going to have
As a result, right now Colorado is serving as one
giant experiment for the full-scale legalization of
marijuana in the U.S."
After seven months, the results are in. Between January 1st
and July 15th, it's estimated that commercial cannabis sales
generated $13 million in additional tax revenue for the Rocky
Mountain State. Meanwhile, overall crime in Denver is down about
10% since the beginning of the year.
At the same time, public opinion toward marijuana continues to
grow increasingly in favor of full-scale legalization. A recent
YouGov poll shows that an overwhelming 61% of Americans are now
on board. Voters in Washington State have gone so far as to allow
for recreational marijuana sales, which started July 15,
America's changing attitude towards cannabis hasn't escaped
Congress. Three weeks ago, the Republican-controlled House of
Representatives struck down an amendment proposed by U.S. Rep.
John Flemming (
) that would derail President Obama's initiative to loosen the
banking restrictions on marijuana dispensaries. If Obama's plan
is allowed to unfold, dispensaries working within their state's
legal boundaries would no longer be barred from depositing money
with FDIC insured financial institutions.
Marijuana companies aren't the only "sin stocks" garnering
headlines lately either...
In June, Big Tobacco giant
Philip Morris International (Nasdaq:
announced it would be buying British based e-vapor company,
Nicocigs, to establish its presence in the U.K. electronic
cigarette market. This recent acquisition joins a host of
activity in the sector, including
purchase of Green Smokes Inc. in February and
takeover of premium e-cig producer, Blu, in 2012.
If you read these issues regularly then you know
StreetAuthority's resident growth stock expert, Andy Obermueller,
has been bullish on e-cigs since he originally recommended
electronic cigarette manufacturer Vapor Corp. (Nasdaq:
) to his
subscribers in December, 2013.
Here's what Andy had to say about e-cigs in his most recent
"The market for electronic cigarettes is growing.
According to Bloomberg, sales from the e-cig industry
were $1.7 billion in 2013, up from $20 million in
"But that growth isn't about to slow down. In
fact, Wells Fargo analyst Bonnie Herzog told CNBC
that she sees sales reaching $10 billion in 2017.
She even goes so far as to say they will
overtake conventional cigarettes within a
I think she's right. I think e-cigarettes are a
true game-changer, and I believe the opportunity is
probably even larger than Herzog thinks."
Action To Take -->
While Andy thinks there's a lot of opportunity betting on Big
Tobacco's involvement with e-cigs, he thinks the real money will
be made in small-caps like Vapor Corp.
That logic also extends to the future of marijuana in the U.S.
In fact,Andy predicts marijuana will be on the path to
legalization in all 50 states by the end of 2015. From the looks
of things, he might just be onto something. ArcView Market
Research estimated that legal cannabis hit $1.43 billion in sales
in 2013 and will grow 64% to $2.34 billion in 2014. -- that's a
rate of growth faster than even smartphones
The popularity of marijuana has never been higher... and
Andy's prediction could very well prove to be correct.Now he's
found a little-known pharmaceutical company that could see a
major boom as marijuana's popularity continues to rise in the
U.S. The company produces the first cannabis plant derivative to
gain government approval in any country. And once its
groundbreaking drug passes Phase III trials and hits the shelves,
Andy is predicting massive gains. To learn more about this
company -- along with 10 more of Andy's predictions for 2015 --
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