The state of legal cannabis in New York got hit by three major shockwaves over the past couple of weeks.
The biggest one came late Friday afternoon.
Anyone at all interested in the investment possibilities here needs to understand all three.
- On Tuesday, July 3, the New York Department of Financial Services said it would stop imposing any regulatory action against banks that work with companies in the medical marijuana industry. That makes sense when you consider that the federal prohibition against marijuana is making some banks nervous to service any cannabis company that “touches the plant,” forcing marijuana companies into less-than-ideal banking arrangements or pushing them to operate as all-cash businesses, which poses high security risks.
- On Thursday, July 12, the New York State Department of Health declared new “Emergency Regulations” that allow doctors to prescribe cannabis as a replacement for opioids. The move is no doubt a response to a heightened risk of opioid deaths the state has been seeing. From 2010 to 2016, the percentage of New Yorkers who died from opioids increased 180% to more than 3,000 deaths. “Medical marijuana has been shown to be an effective treatment for pain that may also reduce the chance of opioid dependence,” New York State Health Commissioner Dr. Howard Zucker said. “Adding opioid replacement as a qualifying condition for medical marijuana offers providers another treatment option, which is a critical step in combatting the deadly opioid epidemic affecting people across the state.” As of July 10, there were 62,256 certified patients in New York’s medical marijuana program. Now that number should skyrocket.
- Then came the biggest “boom.” Late Friday, July 13, New York’s Department of Health released a Gov. Andrew Cuomo-endorsed 74-page report that lists the dozens of reasons why the state should legalize recreational cannabis for its 19.4 million residents, concluding the positive effects would outweigh the negative. Among the positive benefits: up to $678 million in tax revenue each year.
In other words, New York is on track to go fully legal far sooner than anyone expected.
Here’s the bottom line: Cannabis companies with exposure in New York are now on track to rake in a whole lot more revenue and profits. After all, New York is the nation’s fourth-largest state by population, and the third largest in terms of economic output, generating about $1.5 trillion per year in economic activity as of 2016.
And thanks to my alerts here, many of you saw this coming.
On June 23, I told you how the formerly anti-legal marijuana Gov. Cuomo had reversed course and now supports the idea of legalization following recommendations from his staff.
Now, the state legislature still has to hammer together, debate, and pass a recreational legalization bill. I’m sure you know how your state capitol operates, no matter what state you live in.
So, while the folks in Albany don’t look likely to wrap all that up this year, the momentum is heading that way – and quickly.
But I hope you don’t “wait” on them before deciding to make the plunge into pot stocks.
Because there’s a lot more going on.
In fact, I’m actively tracking legalization efforts in more than a dozen U.S. states that could get done this year.
In a new report – which is free for members of my Nova-X Report premium service – I lay what’s happening in these states… and I pick the four best ways to invest in this profit opportunity of a lifetime.
These companies are the best prepared to tackle the significant ramp-up in legal pot sales that legalization in these states – and after that New York – represents.
Better than that, they’re the best poised to deliver big returns to their investors.
A small stake in just one of them could turn into a million-dollar windfall.
Find out how to get that report by clicking here.
I’ll be back tomorrow with your regularly scheduled Strategic Tech Investor. See you then.
Cheers and good investing,
Michael A. Robinson
Editor’s Note: For all of Michael’s legal cannabis coverage in Strategic Tech Investor – and all his great Silicon Valley tech-stock picks and cryptocurrency counsel – click here.