Posted on 09/03/2018 2:37:31 PM PDT by Drew68
Call it a buzzkiller from BuzzFeed.
On Wednesday, online news site BuzzFeed reported that the Trump Administration is engaged in a "secret war on weed." BuzzFeed stated that the Marijuana Policy Coordination Committee told multiple federal agencies to submit "data demonstrating the most significant negative trends" about marijuana use. The goal appears to be to try to prevent further support for relaxing federal anti-marijuana laws.
If the committee is successful in its efforts, companies with U.S. marijuana operations such as Scotts Miracle-Gro (NYSE:SMG), CannaRoyalty (NASDAQOTH:CNNRF), and Kush Bottles (NASDAQOTH:KSHB) could see their hopes of operating in a fully legal environment dashed.
But don't go shorting these stocks. Here are three reasons why this plot to derail marijuana momentum will flop -- and do so bigly.
1. It's not coming from Trump
Love him or hate him, one thing pretty much everyone will agree on about President Trump is that he marches to his own beat. He stated in his presidential campaign that his top adviser was himself. So far, that statement appears to be pretty accurate.
The effort to cast marijuana in a negative light isn't coming from Trump. Instead, it's being coordinated by the Office of National Drug Control Policy (ONDCP). Jim Carroll is the head of the ONDCP, a position also known as the "drug czar." Carroll isn't a close confidante of the president. He wasn't even Trump's first pick for the position.
President Trump has publicly expressed his view that states should be allowed to make and enforce their own marijuana laws. In April, he pledged to support legislative efforts led by Sen. Cory Gardner (R-Colo.) that would prevent federal interference in states that have legalized marijuana (like Gardner's home state of Colorado). The Denver Post reported that Sen. Gardner's spokesman stated that the senator "remains confident in the commitment the president made to him to support a states' rights solution to the current disconnect on marijuana law."
2. It's a bad political move
Coming out swinging against efforts by states to legalize marijuana is a bad political move on multiple fronts. First, President Trump would be blatantly going against what he has publicly stated he supports. I know, what a shock it would be for a political figure to do a 180. But Trump would catch a lot of flak -- and he knows he would.
Speaking of flak, a major reason why the president came out in favor of relaxing federal marijuana laws earlier this year was that Sen. Gardner was holding up confirmations of political appointees. If Trump breaks his word, you can bet that Gardner will resume the logjam that worked pretty effectively in the past.
It's no secret that the American public has grown increasingly supportive of the legalization of marijuana. I doubt that a report from a group called the Marijuana Policy Coordination Committee based on data collected from more than a dozen federal agencies is going to sway public opinion. Quite honestly, the committee itself sounds like a creature from the swamp in D.C. that Trump has promised to drain.
3. The cat's out of the bag already
The nail in the coffin for the "secret" effort to derail the momentum for marijuana is that it's not a secret anymore. The cat's out of the bag already thanks to the reporting by BuzzFeed. And because it appears that the committee's report will be intentionally biased, I suspect that it will be largely discredited from day one.
More important, though, the cat's out of the bag already with respect to legalized marijuana in general. Thirty states plus the District of Columbia allow legalized medical marijuana. Nine states allow the legal use of recreational marijuana. More are likely to follow in their footsteps.
The U.S. Food and Drug Administration (FDA) even recently approved a marijuana-based drug for treating rare forms of epilepsy. That would make it hard for the committee's report to convincingly argue that there aren't medical benefits associated with marijuana.
After the flop
I suspect the official report from the Marijuana Policy Coordination Committee will end up where lots of reports from federal committees and agencies go -- the trash can. Investors appear to be betting that's what will happen. Scotts Miracle-Gro stock moved higher the day after the BuzzFeed story went public. CannaRoyalty's share price was up, too, while Kush Bottles stock was basically flat. If investors thought the president would renege on his commitment to Sen. Gardner, these stocks would have fallen.
There's still a long way to go before federal marijuana laws are revised. But I don't think the odds of that happening are one smidgen lower now that the committee's anti-marijuana campaign has made the news. I continue to believe that it's only a matter of time before the federal government gets out of the way and allows states to make their own decisions with respect to marijuana.
Even if this view proves to be correct, though, it doesn't mean that all marijuana stocks are smart picks. Investors still need to do their homework before buying any marijuana stock. However, I think that the U.S. cannabis industry is here to stay. Companies like Scotts Miracle-Gro should be winners over the long run. The Marijuana Policy Coordination Committee won't be.
Looking forward to your impending disappointment when the opposite of your prediction occurs.
President Trump has stated publicly he supports Sen Booker’s bill to protect state’s medical marijuana programs & their patients.
You authoritarian prohibitionists have lost the argument at the ballot box in these states. Get used to it.
Prepared for your next standard authoritarian prohibitionist rant, now! hehehe
I respect President Trump because he keeps his promises.
https://www.youtube.com/watch?v=tPneh8putkg
“Marijuana use causes brain damage, psychosis and szhizophrenia. Not to mention being carcinogenic just like tobacco.”
It is amazing how many people I know who have no problem going to Colorado for a 3 day bender of music drink and pot, and see nothing wrong with it. It’s natural is a common excuse. Couple of friends up in Steamboat Springs for a music/pot fest now. They are young “educated” professionals who refuse to see the downside of smoking pot.
“Prepared for your next standard authoritarian prohibitionist rant, now!”
But, it’s FOR THE CHILDREN! THE CHILDREN! WE HAVE TO SAVE THE POOR INNOCENT CHILDREN! Ohhh I think I’m gonna faint! Ohh....
;-)
Unlike national mj prohibitionists, Trump supports the Tenth Amendment. Here is candidate Trump speaking favorably about medical marijuana and leaving legalization to the states =>
https://www.youtube.com/watch?v=PWIQhDbs1g8
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President Trump supports the STATES Act, which leaves mj legalizaion to the States =>
https://www.youtube.com/watch?v=6M53XLBd54Y
______
Maybe they can't see the downside of smoking pot because they've never experienced a downside to smoking pot?
It's like an alcoholic wondering why people can't see the downside to drinking beer, oblivious that for the vast majority of beer drinkers, there is no downside. They drink a couple of beers, relax, and go about their personal and professional lives with no negative consequences.
Trump has already done more to facilitate legal pot in the US than any President since FDR effectively banned it.
Let’s see if prohibitions here have the nerve to snark on President Trump.
“It’s like an alcoholic wondering why people can’t see the downside to drinking beer, oblivious that for the vast majority of beer drinkers, there is no downside. They drink a couple of beers, relax, and go about their personal and professional lives with no negative consequences.”
Yep, 99% of people who use pot you would never guess. The biggest danger from pot is the legal trouble due to government idiocy:
“We don’t want you to smoke this relaxing herb and not do your job. So, we’ll take the herb from you at the barrel of a gun, lock you up with crazy violent criminals and give you a record so you can never get a job again!”
“Traffic fatalities have soared in states like Washington and Colorado that have legalized pot.”
Fake news.
Legal here now for certain medical conditions. 2 years to legalization is the prediction.
“We don’t want you to smoke this relaxing herb and crash the train your operating, killing 45 people. So, we’ll pass laws to protect society from your idiocy. If you are too stupid to not understand how this protects the people at large, we will procecute and convict you, which will give you a record so you can never get a job again!”
There you go stoner, fixed it for you.
Illicit, out of season ginseng. THAT is the true outrage. That scourge must be stopped!
I am tired of living in a police state so we can save a few people from themselves.
#############
Agree 100%, but convictions are a commodity, and that industry has a powerful lobby.
“convictions are a commodity”
Agree 100% also. It is really hard to tell who has a bigger stake in keeping the WOD going, the cops or the cartels. On this particular issue, they are staunch allies.
It's so nice to see you people on the losing side.
I can't wait to vote for every pro-legalization initiative that comes my way. And here's the funny part; I haven't smoked weed in 20 years!
Too bad sterilization isn’t offered with any purchase of an ounce of “herb”.
You loony bastards shouldn’t be reproducing. Guess your okay with your children and grandchildren smoking the stuff too, right?
Fake news designed to create dissension among Trump supporters.
Many people will die on the PUBLIC roads due to cucks like this.
The amazing thing I have learned from talking to people is that it's the older folks who are using medical marijuana. I am 63 and on the young side for it. Word spreads quickly that it works and is not addictive like pain killers.
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