"Enforcement" Won't Jeopardize Triple-Digit Pot Stock Profits

Last week, White House Press Secretary Sean Spicer indicated the government may "step up" efforts to enforce federal marijuana laws, in direct opposition to several states, such as Colorado and California, that have legalized cannabis for recreational use. And this week, Attorney General Jeff Sessions did anything but walk those comments back when he said "it remains a violation of federal law to distribute marijuana... whether a state legalizes it or not."

Spicer and Sessions' ominous statements galvanized cannabis industry players, insiders, and activists, even as they sent marijuana stocks into a "Trump slump" of their own.

Now, I've recommended my Nova-X Report readers who've been playing the stocks in our weed investors' "bible," The Roadmap to Marijuana Millions, treat this downturn as a chance to use my "Cowboy Split" strategy to add to positions that have already paid triple-digit gains.

But I completely understand why regular investors playing this lucrative trend might be nervous.

So let me tell you why I'm not nervous at all. It has to do with a powerful, unlikely "Red-Blue" coalition that isn't going to take any renewed assault on legal pot lying down.

But more than that, it has to do with unstoppable momentum...

Rare Washington Cooperation on a Bipartisan Issue

I like to call these folks the "Four Horsemen" of cannabis prohibition. Representatives Earl Blumenauer (D-OR), Jared Polis (D-CO), Dana Rohrabacher (R-CA), and Don Young (R-AK) have launched the Congressional Cannabis Caucus.

pot stockPlaying on the strength of marijuana initiatives at the ballot box on Election Day, the bipartisan quartet in the House of Representatives decided not to wait out demographic changes, slowly fading opposition from older lawmakers, or any potential problem initiatives that could arise from the Trump administration.

The caucus - the first of its kind - aims to protect state-level gains made in recent years and bolster support for reform of antiquated federal laws. Their endgame: removing marijuana from the Drug Enforcement Administration's (DEA) list of Schedule I drugs, which also includes cocaine and heroin.

The newly organized effort to fight off holdout marijuana opponents at the federal level is positive news for the entire industry - including the Nova-X Report's "ecosystem" of 30 stocks.

And you'd better believe these congressmen mean business...

The Cannabis Caucus Is Leaving Nothing to Chance

The Congressional Cannabis Caucus made a splash on the issue a week before the administration could, thus shaping the issue. Importantly, Republicans are helping spearhead the caucus. With a majority in the House and Senate, support from GOP lawmakers is essential to any pro-cannabis congressional effort.

Sessions, a former Republican senator, has long been an outspoken critic of marijuana, and his statements during confirmation hearings and since have been vague at best on the topic. But Trump ran on a heavily pro-business platform. As such, he'd have a hard time ignoring the massive amount of (taxable) money legal marijuana companies are making.

Yet the first official statement on marijuana legalization post-inauguration was a mixed bag - highly supportive of medical marijuana, not so with recreational.

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"The president understands the pain and suffering many people go through especially those facing terminal diseases, and the comfort that medical marijuana can bring to them," White House Press Secretary Sean Spicer said on Feb. 23. Spicer added that the president believes there is a "big difference" between medical and recreational use. He said that he "believes" there will be greater enforcement of federal laws governing recreational use, but without the conviction the administration used in talking about dozens of other political issues since the inauguration. Also noteworthy was that the exchange came during a question-and-answer period, rather than a priority point during Spicer's prepared briefing, and that he said enforcement would be "a question of for the Department of Justice."

Standing in the way of opposition lawmakers is a 2014 congressional rule barring the DOJ from using funds to interfere with the implementation of state cannabis laws. Because it was not an executive order, Trump cannot just make the rule vanish with the stroke of a pen.

Legal Marijuana Has Unstoppable Momentum

Where the Money Is

Michael’s Nova-X Report is focused on bringing readers the biggest possible technology profits, like the 264% and 213% gains they recently made on two of the market’s hottest chipmakers. New technology and innovation are potent profit catalysts, and as a 25-year veteran Silicon Valley reporter, Michael is researching these opportunities all the time.

That’s why, as early as 2014, Michael saw the level of innovation and high-tech in play in the then tiny legal cannabis industry. By the time the market exploded in 2016, he’d already made some quadruple-digit recommendations in the sector, like GW Pharmaceuticals Plc. (Nasdaq: GWPH). Now biotech firms, growers, marketers, and retailers are all out on the cutting edge, working to get a superior product into consumers’ hands. The profit potential in the cannabis plays Michael is recommending now is enormous, on par with some of the most profitable tech firms in the world.

You’ll have the chance to learn how to get these recommendations below.

As I've noted before, I think it's a giant leap to think that, even in his new position of power, Sessions will be afforded the freedom to commence the sweeping public policy overhaul it would take to revoke state legalizations. A host of variables - including public opinion, access to medical care, and economic incentives - stand in the way.

Still, crazier things have happened in Washington.

Along with three other members of Congress, U.S. Rep. Don Young (R-AK) cofounded the Congressional Cannabis Caucus earlier this month.

Rep. Young stands apart as the most interesting figure involved in the caucus. You likely remember the Alaskan as the "Bridge to Nowhere" (Gravina Island Bridge) lawmaker. In what became the symbol for pork-barrel spending, he tried to secure nearly $400 million to build a bridge and replace a ferry that serviced a scantly populated island.

D.C. insiders, however, know Young remains highly relevant, effective, and credible among his peers.

Young's aggressive tactic out of the gate has been to paint legal marijuana as a states' rights issue - always an issue dear to conservatives' hearts. He preemptively called out states' rights champions who would even consider supporting the rollback of state-based marijuana laws or defense of existing federal anti-cannabis legislation as "hypocritical."

"You can't be a conservative and say 'we can pick and choose,'" Young said during a Feb. 16 press conference in which the Congressional Cannabis Caucus introduced themselves. "You have to be either for states' rights or against them." He added that one of Trump's few statements about marijuana on the campaign trail indicated the then-candidate considered it a states' rights issue.

Young and Rep. Rohrabacher went on to emphasize the concept of individual freedoms and the importance of the doctor-patient relationship, especially for children and military veterans who've used marijuana to help control seizures and pain levels without highly addictive opioids.

Caucus members appealed to pro-business legislators by characterizing those operating legally in states such as Colorado and California as "hard-working innovators" and "true entrepreneurs."

The Congressional Cannabis Caucus will go a long way toward protecting the states that already have legislation.

But it obviously needs more support - and the right kind - to create federal-level changes.

More Red, Purple State Buy-In Needed

Congress' attitude typically reflects that of the U.S. electorate. Most Americans - about 60% of them - favor legalizing marijuana, according to recent polls.

There are several federal bills working their way through Congress that could further ease legalization. For example, the Marijuana Business Access to Banking Act would update federal banking rules to resolve conflicts between federal and state laws and allow banks and credit unions to provide services to legitimate marijuana businesses.

Caucus members at the Feb. 16 press conference said the lack of access to funds that millions of other businesses have creates unfair disadvantages for cannabis entrepreneurs. In addition, the need to do more of its business in cash leads to risky situations for the business model and employees of these legal entities, such as keeping large amounts of cash at dispensaries.

Having two Republican members leading the bipartisan caucus is helpful, but the next step is to bring on more GOP lawmakers, preferably senior-level ones, from other key states. The obvious next targets will be the red states that have passed some form of legalization already (e.g., Louisiana, Arkansas, Montana, and Minnesota).

In a Dec. 6 update, I mentioned Missouri's prospects for medical-use passage and Arizona's for recreational success are stronger than ever this year. Marijuana ballot initiatives have also passed in several "swing" states of influence (Ohio, Michigan, Pennsylvania, Florida) - all of these states went to Trump on Election Day. This makes congressional lawmakers from these states prime Congressional Cannabis Caucus candidates.

As more lawmakers from these states join the caucus, and they will, pro-marijuana efforts will grow exponentially stronger. Something like access to traditional banking funding would blow the lid off of an industry full of companies making huge gains in recent months.

The people in more than half of the states in the union have spoken. So have the markets. This bandwagon is going to be excruciatingly hard for marijuana opponents to stop without the will of either group of stakeholders behind them.

And that means marijuana stocks will continue to be a savvy investment - one of 2017's best - and for Nova-X Report readers, a huge boost in building financial security and a wealthy retirement.

Michael makes sure every one of his Nova X-Report readers gets a copy of his "weed investors' bible," The Roadmap to Marijuana Millions. It names all 30 of his favorite cannabis stocks and how to play them. Click here to learn how to get your copy.

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About the Author

Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...

  • He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
  • He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
  • As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.

This all means the entire world is constantly seeking Michael's insight.

In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.

Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.

And even with decades of experience, Michael believes there has never been a moment in time quite like this.

Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.

To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.

His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.

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