This Week's Cannabis News (and the Best Marijuana Stock to Buy Right Now)

Investors continue to eye ongoing developments on the legalized cannabis front. States across the country continue to press forward with legalization efforts.

There's a chance we'll see an expansion of legalization during the 2020 election. And it could mean a 98% windfall for our best marijuana stock to buy right now.

Today, let's examine the headlines in the cannabis space and take a look at the best marijuana stock to own right now.

We'll start with the Midwest, where cannabis interest has already begun spreading...

Is Minnesota Marijuana Legalization Happening?

Earlier this year, Illinois experienced a windfall from the broad effort to legalize recreational cannabis. Per capita, Illinois reached the second best first month of recreational cannabis sales in American legalization history.

The Illinois Department of Financial and Professional Regulation said that the state reached $39 million in cannabis revenue in January. The agency says that state residents purchased more than $30.6 million; non-residents purchased $8.6 million in recreational. The state expects to continue this blazing level of sales in 2020.

Now, a nearby Midwestern state is reportedly considering a similar legalization effort. Rumors are swirling that Minnesota Democrats are seeking to expand beyond existing medical marijuana laws. Democratic state representatives are pushing for a bill that would make the state the 12th in the nation to legalize recreational cannabis.

However, it appears unlikely that such a bill would pass with a Republican Senate in control of local calling bills for a vote. Also, there seems to be significant opposition due to local traffic safety.

Trump Budget Worries

It appears that the Trump administration is more hostile to cannabis legalization than previously thought. This week, the White House released its 2021 fiscal year budget. The document reveals several provisions that could limit the expansion of legalized medical and recreational marijuana.

The new budget calls for the removal of a rider that prevents the U.S. Justice Department from using funds to stop states or territories "from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana."

The spending plan also calls for funds to be set aside for greater FDA "regulation of cannabis and cannabis derivatives." Finally, the spending bill contains another rider that prevents Washington, D.C., from using local tax dollars to legalize cannabis sales.

Still, the industry is ready to explode at the state level. And this cannabis stock is ready to soar when it does.

The Cannabis Stock to Buy Right Now

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If you're looking for a stock trading at reasonable multiples with big upside on legalization, look no further than Trulieve Cannabis Corp. (OTCMKTS: TCNNF).

While it operates in Massachusetts, Connecticut, and California, this vertically integrated cannabis firm has a unique story. It has also established itself as a leading power player in medicinal cannabis. The firm is the largest (and first) licensed medical marijuana player in the Sunshine State.

Originally formed by Florida nursery owners, the company has done something that few companies in the space have done: They've shown a consistent profit. At the end of 2019, the firm had about 44 dispensaries across Florida. The firm operates a large fleet of delivery vans, and e-commerce sales are expected to make up 20% of total revenue this year.

While Trulieve sees opportunities in potential legalized markets like Massachusetts, Florida could be the real crown jewel of the recreational cannabis market. Florida continues to be a destination for Americans escaping high-tax states and retirees looking for warm weather and moderately priced real estate. With the population booming, Florida stands to become a major player in legalized cannabis and will continue to see the state expand its medicinal platforms.

Trulieve is trading at a much more reasonable valuation than many other cannabis companies. It trades at an enterprise value to EBIDTA of just 5.2, which makes it a very attractive takeover target today. Trulieve currently trades at just $10.15 per share.

But we have a price target of $20. Based on current projections, Trulieve has the upside of 98% over the next year as cannabis legalization and improving sales benefit the firm.

Action to Take: Now is the time to start building your cannabis portfolio. Companies like Trulieve Cannabis Corp. (OTCMKTS: TCNNF) are headed for new all-time highs during election season, so grab it while it's still trading for $10.

The Countdown Clock Is Ticking...

With 32 states approving medical cannabis... over 50% working to decriminalize it... and 70 cannabis legalization bills sitting in Congress, we're predicting that full federal legalization of cannabis is just around the corner. And when this happens, it's going to blow the doors off of Wall Street, potentially flooding the industry with billions of dollars - and you're going to want to claim your stake before that happens. That's where "The 2020 Pot Profits Roadmap" comes in. Get your hands on this comprehensive guide to the cannabis industry now... before it's too late.

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About the Author

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

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