Today Russ Baer, a staff coordinator for the Drug Enforcement Administration (DEA) media affairs wing gave a response to (@StevenNelson10) of USNEWS.com via email which he awesomely tweeted (God Bless Him) and has the entire cannabis industry on pins and needles. The statement made to him from this staffer read:
“Tomorrow morning (August 11th, 2016) the Drug Enforcement Administration will be making some important announcement regarding Marijuana related topics that will be published in the Federal Register. Because of your interest and/or prior engagement with the DEA on this subject, the DEA office of National Media Affairs is reaching out to you regarding these anticipated announcements.”
Unfortunately, many people do not believe this has anything to do with rescheduling Cannabis, but rather the disbanding of the National Institute on Drug Abuse’s (NIDA) Monopoly on the study of marijuana. Currently the NIDA located in Maryland uses the University of Mississippi as the ONLY place in the United States where it is Federally Legal to grow marijuana which pigeon holes the study to one location, with select doctors and scientists that are located there. Now, I don’t want to knock the University of Mississippi, but according to Us News and World Reports College Rankings the the University of Mississippi ranks #164 in Biological Sciences. Have the Feds ever heard of Harvard University ranked #1, or Stanford Ranked #2 or my Alma Mater University of Arizona that is ranked #38 in Biological Sciences and also partnered with Columbia University to create the Bio-dome? If the consensus is correct and the NIDA monopoly is broken up any qualified universities will be able to study the plant and the cornucopia of uses that are already widely accepted.
What this will mean for the public markets and marijuana stocks we have been bullish on since establishing this site? In short; attention. Many investors have been on the fence about marijuana stocks because they don’t quite understand the markets. If you follow me on twitter @WolfofWeedSt or seen my commentary in TheStreet.com or Forbes you know that I am bullish on Biotech for a myriad of reasons. The companies we track at MarijuanaStocks.com in this space are already developing drug therapies around the molecular compounds within the Cannabis plant. I Liked GWPH when it was $32, CARA just over $4, ZYNE near $5, INSY at $11.75 and on and on and on. The fact is we get it, we understand the market and we see the opportunity. These companies will be acquisition targets in our minds by some of the bigger players in the space. At the top of our list of companies that could scoop up some of the above mentioned tickers is ABBV.
The announcement might not be what we wanted, but sometimes it’s best not to rip off the band aide. I realize that while we wait for common sense legislation the US government will continue to fight the fake “War on Drugs” and spend billions of dollars trying to stop people from smoking weed. I also know that people within the DEA know that the archaic system in place is completely illogical. We all know that Oxycodone is far more addictive than Marijuana, kills people when cannabis doesn’t, yet is considered a schedule 2 drug by the DEA. The History of the war on Cannabis goes back quite a way to the days of William Randolph Hearst because he was more scared of Hemp (marijuana’s non psychoactive cousin) hurting his timber interests thereby hurting his newspaper empire. The system has been broken since Nixon. Below is a graph you can share with your friends at the water cooler, just don’t email it on government servers. The chart below is the singular personification of insanity & government waste.
We will give you an update as soon as we see something and will hope to be surprised tomorrow. If we are by some miracle given the early Christmas gift of rescheduling, get ready for the next major boom in the Marijuana Stock sector….
The Wolf of Weed Street