Bud Dud in Congress

The Energy and Commerce Subcommittee on Health's meeting on cannabis was a small step forward, but the pot industry can't succeed without more research.‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  [Profit Trends]( [Beyond the Bong](  Congressional Hearing Calls for More Cannabis Research Matthew Carr | Chief Trends Strategist | The Oxford Club  [MUST-SEE: The Crazy TRUTH About Pot Stocks]( [AltText](There's been a lot of crazy rumors about pot stocks lately... But [this one]( might just take the cake. It turns out everyday Americans can become pot millionaires... All thanks to [this brand-new guide](. But you'll NEVER hear about this from the mainstream media... [Just click here for everything you need to know.]( SPONSORED  [Matthew Carr] Over the past year, we've gotten used to marijuana legislative history being made time and again. In [March](, the Secure and Fair Enforcement (SAFE) Banking Act cleared the House Financial Services Committee. This was the first measure to end prohibition in the U.S. to ever receive a committee vote and then pass. Then, in [September](, the SAFE Banking Act cleared a floor vote in the House of Representatives. In [November](, the Marijuana Opportunity Reinvestment and Expungement (MORE) Act breezed through the House Judiciary Committee. There is a current of change in this country. History is being made as efforts to end federal prohibition gain steam and support. But we're not done setting milestones... Last week, the Energy and Commerce Subcommittee on Health heard debate on cannabis for the first time. It's noteworthy since the Committee on Energy and Commerce is the oldest committee in the House. But the hearing wasn't the market mover investors were hoping for. The debate was supposed to focus on cannabis policies for the next decade. These addressed cannabis research, ending federal prohibition and de-scheduling cannabis. But mainly, the 3 1/2 hours were spent with witnesses from the Drug Enforcement Administration (DEA), Food and Drug Administration and the National Institute on Drug Abuse being pressed by lawmakers on the health effects of marijuana. Though this latest congressional discussion is another positive step in the right direction for the industry... the end result was a letdown.  [How to Retire Starting With $20](  [Alex Green and Bill O'Reilly](  [Bill O'Reilly and a legendary stock picker just revealed the only way to retire rich starting with $20. Details here.](  That's because the cannabis industry itself was shut out from testifying. And the three government agencies and lawmakers all agreed more cannabis research needs to be done. That's all fine and well, but since marijuana is still classified as a Schedule I drug, all research needs to be approved by the DEA. And even if you want to get your hands on cannabis for research, there's only one DEA-licensed supplier: the University of Mississippi. This bottleneck creates inadequate supply for research. Plus, the university can't create any cannabis-derived formulations. So we're probably looking at years before this is resolved. The hearing was a small step forward for cannabis. But not big enough to tackle some of the issues the industry is currently grappling with... Stick to Bud Few stories were more frightening in cannabis last year than the e-cigarette or vaping product use associated-lung injury (EVALI) outbreak. The vaping crisis added increased downward pressure on already depressed shares of U.S. multistate operators. And the Centers for Disease Control and Prevention (CDC) rushed in to investigate as the outbreak spread. EVALI cases ramped up in July but really skyrocketed into September.  [Chart - EVALI]  Thankfully, that was the peak. And they began tapering off. As long suspected, we now know for certain that vitamin E acetate is the culprit. And even though the number of hospitalizations has slowed, more than 2,600 EVALI cases have been reported. Plus, no U.S. state was immune. On top of that, 60 people have lost their lives so far. Illicit market participants were to blame for EVALI. But the life-destroying vape cartridges weren't merely bought in back-alley sales. The CDC found 16% of EVALI patients purchased their THC vape products from only commercial sources. Couple that with the fact that California's Bureau of Cannabis Control seized nearly 10,000 illegal vape pens from unlicensed retailers from December 10 to 12, you have the makings of an ongoing crisis... Which also explains why the Energy and Commerce Subcommittee on Health spent so much time discussing the potential adverse effects of cannabis. So until the government begins to crack down heavily on black market sales and regulate the legal markets, THC vape products remain questionable. And because of this systemic issue, the CDC continues to recommend consumers avoid all vape products. I know plenty of cannabis industry insiders who thought EVALI was going to undo the progress made in recent years. There's a chance it still might. But it also underscores the need for more regulation, more research and more protection for consumers. The High Five Below are our High Five, where - each Monday - I cover the five pot stocks I believe will make major moves - up or down - in the week ahead. 1) Canopy Growth Corp. (NYSE: CGC) shares are at their highest level since September. And the company will report third quarter results in mid-February. But we saw Aphria slash its full-year forecast last week, in part because of the vape ban in Alberta. The question is, will Canopy's earnings be a miss like Aphria... or a home run like OrganiGram? 2) Cronos Group (Nasdaq: CRON) shares hit their highest point last week since November. The company shouldn't be on the earnings calendar until March. When it is, we're looking for a 209% increase in revenue as its loss per share declines. Like Canopy, eyes will be on the fact Cronos moved into the Alberta adult-use market last year. 3) Trulieve Cannabis (OTC: TCNNF) finally had enough. Shares have dropped heavily since mid-December following a series of claims made by a short seller. Last week, Trulieve filed a libel lawsuit against Grizzly Research for what the company asserts are false statements. 4) Aurora Cannabis (NYSE: ACB) kicked off 2020 with a 22% drop. That's because it received some analyst downgrades. Shares have fought their way higher on the back of OrganiGram's earnings and Cowen's recent outperform rating. 5) Scotts Miracle-Gro (NYSE: SMG) maintains a spot on our list. The gardening supply company is tied to the cannabis space but wasn't bothered by the sector's weakness in 2019. It'll report first quarter earnings on January 29. Shares have fallen on the release date in three of the past three years. Year to date, Canopy is the only member of this week's High Five outperforming our benchmark, the Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF).  [Chart - The High Five]  Pot stocks blazed higher last week thanks to Canadian earnings. And the sector is far outpacing the broader markets in 2020. In fact, the Marijuana ETF has gained 15% year to date. That's more than six times the gain of the S&P 500. That's after the Energy and Commerce Subcommittee on Health hearing for American pot stocks turned out to be a dud. At least it did show dire need for change. And that the current U.S. laws are outdated relics from the last century. This supports my long-term thesis for cannabis. The road ahead will be bumpy. But it always is when you first enter new territory. We're in this for the long haul. If you have a pot stock in mind that you'd like me to discuss here, click the comment button below. Here's to high returns, Matthew   [Leave a Comment](  [Facebook]( [Twitter]( [Share](mailto:?subject=A%20great%20piece%20from%20Profit%20Trends...&body=From%20Profit%20Trends:%0D%0A%0D%0A%20The%20Energy%20and%20Commerce%20Subcommittee%20on%20Health's%20meeting%20on%20cannabis%20was%20a%20small%20step%20forward,%20but%20the%20pot%20industry%20can't%20succeed%20without%20more%20research.%0D%0A%0D ?src=shared) [2020 Election]( [Two 2020 Election Trends to Profit On]( Matthew Carr | January 16, 2020 In a year of unparalleled political drama, find peace of mind in these two profitable election year trends. [Read More](  [AI Brain Drawing]( [Artificial Intelligence: Disrupting the Energy Sector for the Better]( David Fessler | January 15, 2020 AI is bringing new advancements to the energy sector, specifically the wind and solar segments. [Read More](  [Upside Potential Sign]( [10 Microcap Stocks Wall Street Believes Offer 200% Upside]( Matthew Carr | January 14, 2020 Most microcaps are lagging the larger indexes, but some offer an upside of more than 200%. [Read More](  [What the %$#! Is This $7 5G stock?]( It works with Chevron, Cisco, Uber, Amazon and Wells Fargo. It counts the U.S. Army and Department of Homeland Security as customers. Vanguard, BlackRock, J.P. Morgan, Goldman Sachs and Citigroup have all taken HUGE positions. And company insiders are loading up on TONS of shares. This $7 stock could be the linchpin of the 5G revolution. [The incredible story is here.](   You are receiving this email because you subscribed to Profit Trends. To unsubscribe from Profit Trends, [click here]( ). Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. To cancel by mail or for any other subscription issues, write us at: Profit Trends | Attn: Member Services | 105 West Monument Street | Baltimore, MD 21201 North America: [1.800.589.3430]( | International: [+1.443.353.4334]( | Fax: [1.410.329.1923]( Website: [profittrends.com]( Keep the emails you value from falling into your spam folder. [Whitelist Profit Trends](. © 2020 The Oxford Club LLC All Rights Reserved  [Oxford Club] The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications prior to following an initial recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, 105 W. Monument Street, Baltimore MD 21201. Â