On CNBC's "Mad
Money" Monday, Jim Cramer spoke about the future of
the cannabis industry.
The sector traded higher on Monday on no real
news, so Cramer said he can't recommend cannabis stocks as a
buy.
It will be possible to buy the equities at a
cheaper price, the CNBC host said, adding that he still
believes that legalized marijuana is one of the greatest
growth stories of the era. Cramer named five predictions for
the industry in 2019 in the segment.
The legalization wave sweeping North America
will continue, Cramer said. Nearly every time the issue comes to a
vote, legalization wins, he said. And New York Gov. Andrew
Cuomo
came out in favor of recreational marijuana late last
year.
Cramer projects a rise in cannabidiol, or
CBD. In December, President Donald Trump signed
a federal farm bill that legalizes the cultivation of
industrial hemp; Cramer said he sees enormous opportunity in CBD
due to its suitability for medical use. Patients can have all
the benefits without getting stoned, he said.
This year will see the emergence of a handful
of major operators, Cramer said, naming Canopy Growth
Corp (NYSE: CGC), Cronos Group
Inc (NASDAQ: CRON), Tilray
Inc (NASDAQ: TLRY) and Aurora
Cannabis Inc (NYSE: ACB) as companies that are
already separating from the rest of the pack.
By the end of the year, major marijuana
brands will be household names, the CNBC host said. If lawmakers
allow it, marketing activites and celebrity endorsements are next,
he said.
As marijuana companies move up, Wall Street
will pay more attention to biotechs like GW
Pharmaceuticals PLC- ADR (NASDAQ: GWPH) and Corbus
Pharmaceuticals Holdings Inc (NASDAQ: CRBP), in Cramer's view.
The companies are producers of artificial cannabidiol, and
Cramer said they could benefit from the popularity of medical
marijuana due to the dosing problems faced by the
sector.
When a pullback in the sector occurs, Cramer said
he'll put Canopy Growth and Cronos Group on his shopping
list.
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