Cannabis stocks could see a massive boost from news that President Trump told federal agencies to prepare for the imminent loosening of federal restrictions on cannabis. "The Drug Enforcement Agency is expected to announce the first steps towards reclassifying the drug as soon as this week," says the Independent.
That kind of policy shift could be a game-changer for the entire industry.
For years, cannabis stocks have struggled under the weight of regulatory uncertainty, limited banking access, high tax burdens, and restrictions that have prevented many companies from reaching their full potential. A meaningful easing of federal restrictions could help remove some of those long-standing barriers, opening the door to improved profitability, stronger institutional interest, and renewed momentum across the space. If that happens, cannabis stocks could see significantly higher highs from current levels.
One of the names that could benefit is Tilray Brands (TLRY). Analysts at Roth Capital believe the stock could rally by more than 40% over the next 12 months. Part of that optimism is tied to Tilray’s Canadian cannabis business, which remains one of the more established operations in the industry. The company is also seeing a rebound in its international business, which has become an increasingly important growth driver.
Earn Yield from Cannabis Stocks
One example is Innovative Industrial Properties (IIPR), a real estate investment trust focused on owning, managing, and leasing cultivation and processing facilities used by licensed cannabis operators. Because it operates as a REIT, IIPR offers investors a different way to benefit from growth in the cannabis industry. Instead of depending directly on cannabis sales, it generates revenue from long-term property leases. The stock also offers a sizable dividend yield of about 13.21%, making it attractive to investors seeking both income and sector exposure.
Another REIT worth watching is NewLake Capital Partners (NLCP). Like IIPR, NewLake provides capital and real estate solutions to state-licensed cannabis operators. It gives investors exposure to the growth of the cannabis market through the property and financing side of the industry, which can sometimes provide a more stable business model than plant-touching operations. NewLake yields 11.5%.
I am not a big believer in the use, or overuse, of technical indicators. There are charting packages available today that literally contain hundreds of technical indicators. Just the single fact that there are hundreds available should tell you the value of any one of them. They are often very popular with novice traders because they tend to represent something newcomers to the market like to see. Many new traders are often searching for the Holy Grail of trading. They’re looking for that one market guru or that one indicator that will deliver consistent profits time and time again.
Something you need to understand about technical indicators is that they all have one thing in common. They are all taking the past price and volume data on your charts and creating a new line from old data. They have a value in many instances but should never be used make buy and sell decisions.
The Precious Metals tend to Trend based on their Fundamentals. That is High
Demand will generate higher prices. But Low Demand doesn’t necessarily
generate lower prices. Lower Prices tend to come with High Supply.
Physical Silver is used in so many Electronics Applications that the Demand is
always there. It’s just that when Silver broke well above $100 an ounce in
January, More Silver came out of the woodwork and many traders realized.
More so than just the Fundamental Supply & Demand for the Precious Metals is
the Financial Markets - most especially Interest Rates. We will discuss that after
we discuss the Stock Market Forces in play for this upcoming week.
Earnings Season is in Full Swing. Here are the companies releasing their Earnings
this upcoming week that as Stock Traders we would have some interest in:
Monday, April 27
Before the Open: Verizon (VZ)
Tuesday, April 28
Before the Open: United Parcel Service (UPS)
After the Close: Starbucks (SBUX), Visa (V)
Wednesday, April 29
After the Close: Amazon (AMZN), Ford (F), Google (GOOGL), Meta (META), Microsoft (MSFT), Qualcomm (QCOM)
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