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Marijuana Stocks To Consider Before Celebrating 420

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Today is the infamous 4/20 holiday, and in the wake of this marijuana holiday's inevitable festivities, the US house of representatives passed the SAFE Banking Act, which would give US marijuana companies access to funding from federally insured banks. This is a landmark bill that swept through the House with a 321 to 101 vote in favor of the bill. This is a massive momentum driver for marijuana legalization in the US, so why are cannabis stocks plummeting today?

It's because all the marijuana stocks we know and love, like Tilray (TLRY - Free Report) , Aphria , and Aurora Cannabis (ACB - Free Report) , are Canadian marijuana enterprises, not US cannabis producers. In fact, almost all of the US marijuana plays are higher today on their OTC exchanges (they trade OTC because marijuana is not federally legal in the US, so they can't trade on the traditional exchanges yet, unlike their Canadian counterparts who operate in a legalized country).

American weed companies like Acreage Holdings ACRDF, Cresco Labs CRLBF, Green Thumb Industries GTBIF, and Constellation Brands (STZ - Free Report) (who has a 38% interest in Canopy Growth and a contingency option to purchase Acreage Holding when weed is legalized in the US) are all remaining relatively buoyant today. The SAFE Banking Act will benefit US marijuana enterprises, which is why we are seeing this deviation today between the US stocks and their Canadian competitors. Now the uncertainty is with the Senate, with analysts not so optimistic about its approval before some revisions are made. None the less this is an excellent sign for US Marijuana.

Stocks I like following the recent pullback in cannabis stocks are both Green Thumb Industries GTBIF and Constellation Brands (STZ - Free Report) .

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