On June 25, one of the best cannabis stocks to buy in August got a massive buy signal.
Illinois’s Governor, J.B. Pritzker, made history when he signed into law the state’s Cannabis Regulation and Tax Act (CRTA). With this, Illinois became one of first states to legalize marijuana through legislation and the 11th state to legalize it in the U.S.
While it doesn’t go into effect until Jan. 1, 2020, this law is a massive boon for one of the best cannabis stocks to buy in August.
But cultivators, retailers, and others in the legal cannabis market will benefit as well. And some are already moving to take advantage.
Two days after the bill was signed into law, one of the biggest cannabis companies in the world, Canopy Growth Corp. (NYSE: CGC), purchased Acreage Holdings Inc. (OTC: ACRGF).
Now that Acreage is a part of Canopy, the company is looking to pounce on Illinois’ marijuana market.
In fact, at the Player Technology Summit, Acreage Holdings’ Kevin Murphy, said there were more acquisitions to come. While he didn’t provide any specifics, he did offer a hint. He said the next steps for the company would be to create and expand operations in Illinois.
So, what Acreage does next is speculative. One guess is that it could create “social consumption lounges” in Illinois. The company planned to put these in Las Vegas, but with Illinois’ rapid push to legalize marijuana, they could appear there first.
While Acreage has aggressive plans for the “marijuana mecca of the Midwest,” it doesn’t mean it’s going to be easy. In fact, there are already established marijuana companies throughout the state.
And we’ve uncovered one of the best cannabis stocks to buy in August that is going to be a formidable foe for Acreage in the coming year. It even has a potential upside of 147%.
Check out one of the best cannabis stocks below.
One of the Best Cannabis Stocks to Buy in August
Our top marijuana stock to buy now is Cresco Labs Inc. (OTCMKTS: CRLBF).
Cresco is an Illinois-based cannabis company. And it’s one of the largest multi-state operators (MSOs) in the marijuana sector. In fact, it has more than 835 full-time employees.
In Illinois alone, Cresco already has five dispensaries. But it’s not stopping there. According to MJBizConNext, Executive VP of Retail Operations Jourdan Kurtz says Cresco has five more in the works. And that’s on top of the company pursuing marijuana licenses in others states as well.
On July 29, the company announced the launch of a new dispensary brand called Sunnyside. The first location will open in Pennsylvania in November. Then, Cresco will open shops in Ohio, Massachusetts, Florida, Michigan, and Arizona.
Cresco’s advantage goes well beyond having roots in Illinois before Acreage, too. The new law offers benefits to Cresco that out-of-state companies don’t get.
There are tax structure and social justice components that favor in-state craft marijuana cultivation over mass production.
While these aren’t exclusively beneficial to Cresco, it makes it harder for out-of-state players to compete in the market where Cresco is dominating. In fact, Acreage will have a tough time penetrating Illinois’ market – even with the power of Canopy Growth behind it.
That’s why Cresco is such a great stock to buy right now. And it has been for a while. Cresco was first recommended by the National Institute for Cannabis Investors several months back. Readers that invested then have already seen an upside of over 100%.
But investors haven’t missed out yet. In fact, this cannabis stock is only getting started. Its stock currently trades for $7.37 per share. But with a target price of $18.20, it could rocket as much as 147% in the next 12 months.
Once Illinois’ marijuana legalization goes into effect on Jan. 1, 2020, we think this stock has the potential to shoot even higher.
Source: Money Morning