Capitalizing On Cannabis: New Leaders Emerge From A Cloud Of Pink Smoke

When I reviewed the entire cannabis sector two months ago, I pointed to a big change: Not all of the stocks were moving in the same direction. My thesis was and remains the same: Investors are beginning to differentiate on both transparency as well as leverage to the big themes of recreational legalization and a more enthusiastic embracing of the medical benefits of marijuana. Again, the DOJ “hands-off” policy that gave the green light to Colorado and Washington to proceed with their implementations as well as Sanjay Gupta’s reversal of his previously negative view on the medical aspects, both August events, paved the way for investors to sharpen their focus on these themes.

As I suggested then (note: here is a link to all of my previous articles on the sector) and reiterated last month, two of the better stocks to take advantage of these themes are GW Pharma (GWPH) for medical and GrowLife (OTC:PHOT) for recreational (but also medical). While they have held up, most of the sector hasn’t fared as well. Here is how the cannabis stocks I track have performed over the past month:

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