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Could Leon Cooperman Gain from Cannabis Legalization Moves?

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Leon Cooperman on Cannabis

During an interview with CNBC in October, Leon Cooperman said that he has invested his personal money in a few young marijuana companies. These companies include CannTrust (CTST) (CNTTF), Green Thumb Industries (GTBIF), and iAnthus (ITHUF). He also confirmed that he doesn’t own Tilray (TLRY), whose stock gained more than 300% in 2018. Cooperman commented during the interview, “It’s clearly a growth business, and I’ve never had so much fun with my pants on as I’ve had with these stocks.”

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Cannabis stocks gain on legalization moves

As CNBC reported yesterday, New Jersey legislators unveiled a plan to legalize cannabis (CGC) for adults in the state. Most cannabis stocks were up on this announcement on March 12. Green Thumb Industries, Cronos Group (CRON), Canopy Growth (WEED), and Aurora Cannabis (ACB) gained 5.6%, 4.5%, 3.7%, and 2.6%, respectively.

Cannabis industry

The cannabis industry will likely continue to move beyond early-stage products such as dried cannabis flowers to more value-added products with a variety of uses and consumption formats. Aphria (APHA) board chairman Irwin D. Simon thinks the US cannabis market could hit $50 billion if all states legalize cannabis. These gains for cannabis companies could lead to outsized gains for billionaire investor Cooperman as well.

However, like Cooperman, not all prominent investors are fans of cannabis stocks. As we highlighted in Gundlach Compares Cannabis to Bitcoin, Gundlach thinks cannabis could be another example of market “mania.” He added, “I’ve no interest in mania stuff. I just watch amusedly from the sidelines.”

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