Election Brings Boost to Florida Marijuana Stocks | Florida Dispensaries
Florida Cannabis Stocks

Election Brings Boost to Florida Marijuana Stocks

Florida’s marijuana stocks got a big boost in early January on the heels of Georgia’s runoff election for two U.S Senate seats. Twin wins for the Democrats, combined with wins from November, erased the Republican majority in the Senate thus removing a major roadblock to ending the Federal prohibition of marijuana and giving pot stocks a lift.

With twin Senate seat wins in Georgia on Jan. 5, 2021, Democrats now control both the House and the Senate. With the Republican advantage in the Senate gone, the repeal of federal legalization (or decriminalization) of marihuana looks extremely likely under the incoming Biden-Harris administration. This is great news for Florida marijuana stocks which surged in the days following the runoff.

Not only are substantial cannabis reforms likely, but also the trend to legalize both medical and recreational marijuana at the state level is expected to get a major boost when federal regulations loosen up. 


Multi-state operators (MSOs) love Florida

Florida boasts one of the largest marijuana markets in the country. We have the potential to be a world leader in the industry. And all the cool cannabis companies want to get a piece of the action.

The four most active public companies in the Florida marijuana market are Trulieve, Curaleaf, Liberty Health, and Cannsortium, known as Fluent. Trulieve has a substantial lead over its competitors here in Florida. There are also a handful of other cannabis concerns that operate in Florida. 

All of these companies are what are known as MSOs — or multi-state operators. This means they have operations not just in Florida, but also in other states with legal marijuana. 

But it’s no wonder these companies love Florida. Even without recreational marijuana, the Florida medical marijuana market is red hot. Sales began to pick up substantially after flower and infused edibles were added to dispensary menus over the past 18 months. Industry analysts expect edibles to bring in around $250 million in 2021. And total Florida medical marijuana sales are expected to pass the $950 million mark in 2021

Another factor that played into the growth of the Florida marijuana market in 2020 was the pandemic. Under Florida marijuana laws, dispensaries are considered pharmacies. As such they remained open along with hospitals. Since the pandemic began, marijuana sales have increased more than 300 percent. 

The enactment of emergency measures spurred marijuana sales in other ways as well. Emergency rules were adopted and expanded for online ordering, curbside pickup, home delivery, and telemedicine (for follow-up appointments only). And many of these measures are expected to become permanent. 

The Sunshine State has also witnessed a surge in the number of medical marijuana patients, as well as Florida marijuana doctors, and Florida dispensaries. To date, more than a quarter-million Florida medical marijuana cards have been issued.

Stocks Gain An Average of 25

Within days of the Senate wins, the stock prices of marijuana companies operating in Florida lurched up by an average of about 25 percent.

Complete Florida Marijuana Stock Page

Here are the ballpark figures with links to their stock pages:

Although Cannsortium didn’t see the same bump as the others, it’s because the stock price went up a stunning 140% over the prior two weeks.

Future opportunities for growth

Although recreational marijuana is not yet legal in Florida, many advocates and lawmakers in the state expect that to change on or before the 2022 elections. Will it pass? The fact is, more than two-thirds of Florida voters now favor legalizing marijuana. 

Although a voter initiative aimed at the 2020 ballot in Florida was back-burnered due to the pandemic, the legalization of recreational marijuana in Florida is almost certain to make the 2022 ballot. The only thing likely to stop that from happening is if Florida lawmakers legalize marijuana prior to the 2022 election. 

Being that Florida is one of the top vacation destinations in the U.S., the market for recreational marijuana in the state is expected to be enormous. 

Hemp sales are also on the rise here. Florida has the ideal climate for the cultivation of high-quality industrial hemp and CBD hemp. The Florida Legislature launched a hemp program in 2019. Today, all Floridians have access to hemp CBD products. Residents can buy CBD oil online or in local CBD shops

Although the marijuana industry gets all the media attention, the hemp industry in Florida is no small thing. Unlike marijuana, the market for hemp and CBD products is global. 

Florida Marijuana Stocks Video

So Is it time to buy Florida marijuana stocks?

Nationwide, the legal marijuana market surpassed $18 billion in sales in 2020 (up more than 33% from 2019). Sales are expected to reach more than $24 billion in 2021. And, if you can believe it, a report at Fool.com claims the cannabis sales could reach as much as $200 billion in annual revenue by 2030. 

The cannabis industry has plenty of room to grow. According to Inc. Magazine, black market marijuana pulled in $46.4 billion in 2016. And more than 3 million marijuana consumers are expected to switch their loyalties to legal marijuana dispensaries in the coming years. 

Last month, the Democrat-led House passed the MORE Act. Should it pass the Senate and be signed by the president, the bill will decriminalize marijuana at the federal level and put the regulation of the drug in the hands of the states. 

So far more than two-thirds of U.S. states have legalized marijuana in one form or another. Five states had marijuana initiatives on the November ballot. All five passed by comfortable margins. And the trend is expected to continue. 

So is this a good time to start investing in marijuana stocks? According to Street Insider, marijuana stocks “are the hottest sector in the stock market.” 

The report continues: “As the U.S. continues ushering in a new President and a Senate more likely to pass cannabis reform in America, many investors are seeing the marijuana industry’s potential. Already growing at a record pace in the U.S. 2020 saw most top pot stocks reporting record revenue in the second half of the year… As it stands if predictions for the cannabis market are correct most marijuana companies will experience massive growth in the coming years.”

Bottom line? Florida Marijuana stocks look like a good bet for stellar returns over the next ten years. 

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