According to Jason Spatafora, a Miami-based investor and co-founder of MarijuanaStocks.com, interest in marijuana stocks have skyrocketed as much as 14 percent with so many marijuana initiatives on the ballot this November. The impending election is undoubtedly propelling renewed interest in marijuana stocks.
Nine states have put marijuana initiatives on the ballot. Arizona, California, Maine, Massachusetts, and Nevada are all voting on ballot initiatives to regulate and tax marijuana like alcohol for adults 21 and over. Arkansas, Florida, and North Dakota are voting on measures that would establish medical marijuana programs.
Spatafora, who goes by “The Wolf of Weed Street," told The Street that "should more states adopt laws to legalize either recreational or medicine use of marijuana, we can see a continued run going into the new year." He continued to say "the Canadian run can prop up the U.S. market well into the spring when their national cannabis law takes effect. So long as investors are taking profit along the way rather than let greed dominate their accounts, the bubble will not burst."
A handful of marijuana-related businesses are now listed on the Nasdaq marketplace including GW Pharmaceuticals (GWPH) , the makers of Epidiolex and other drugs, Insys Therapeutics (INSY), a Phoenix-based company known for its cancer pain management drug but who is also developing a cannabis-based drug for the treatment of epilepsy called Cara Therapeutics (CARA), and Zynerba Pharmaceuticals (ZYNE) , the makers of transdermal patches and other delivery methods.
Passing recreational marijuana in California will no doubt boost the market, but Spatafora is more interested in Florida's potential as a new major medical marijuana hub, if voters decide to approve Amendment 2. Spatafora calls Florida the “crash test dummy of the industry.”
California alone could clear the way for a $1 billion increase in local revenues, should voters approve Proposition 64. According to recent estimates, the global industry could become a $75 billion dollar industry by 2020.