+ 0.61
+ 0.21%
+ 0.88
+ 0.31%
+ 1.17
+ 0.34%
+ 0.84
+ 0.47%

Cramer Talks 'Unrealistic Expectations' Among Cannabis Investors

July 12, 2019 11:18 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print More

Cannabis stocks flew higher in reaction to the legalization of recreational weed in Canada and the legalization of hemp in the U.S. as part of the 2018 Farm Bill.

In the time since those milestones, it's become apparent investors have "unrealistic expectations" that are negatively impacting the industry, according to CNBC's Jim Cramer.

What He Said

Many investors are working under the assumption that cannabis will be legalized at the federal level in the near-term, Cramer said during his daily "Mad Money" show Thursday.

To those investors assuming the U.S. Congress will soon take action, Cramer's message is simple: "don't hold your breath."

Recent advancements in the broader cannabis space haven't been the "slam dunk" many had hoped for, the CNBC host said.

The approval of CBD products as part of the Farm Bill is "less generous than it sounds," and companies need to sell products that are consistent with what the Department of Agriculture "tells you to or it is still off limits," he said. 

Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 — click here to learn more!

Why It's Important

A disconnect exists between what many cannabis companies are promising investors versus the reality on the ground, Cramer said.

Even investors who are believers in the long-term potential of the cannabis space need to be "wary of some of the wilder promises" executives are making, he said.

For the first time, investors are "starting to care about the actual results" companies are showing, Cramer said. 

The "paradigm has now shifted," which creates a "much more rigorous" setting for the space moving forward, the CNBC host said.

"Without the promise of legalization here in the U.S., you have to make decisions on the cannabis stocks based on the numbers, no longer optimistic promises," he said. "And the actual numbers are complicated, to put it diplomatically." 

Never miss a news story in the cannabis world. Click here to check out Benzinga Cannabis for more.


Cannabis Markets Media

Related Articles

Michele Harrington To Lead Education, Fundraising Efforts For CBD Sexual Wellness Brand

Foria, a health and sexual wellness brand, has enlisted Michele Harrington — the wife of Viola founder Al Harrington — as an advisor and head of strategic partnerships. read more

Cable Provider 4Cable To Venture Into CBD Space, Considers Two Acquisitions

4Cable TV International Inc. (PINK: CATV) is looking to acquire two CBD companies. The Port St. Lucie, Florida-based company expects to announce its final decision in the weeks to come. read more

Hemp Is Not Marijuana... Unless You Ask The DEA

This article was originally published on Hoban Law Group, and appears here with permission. read more

Hydroponic Cannabis: The Hydroponic Weed Growing Guide

This article was originally published on WeedWeek, and appears here with permission. read more

What Are Some Common Side Effects Of CBD Oil?

This article was originally published on Cannabis & Tech Today, and appears here with permission. CBD, one of the main components of the cannabis plant, is now being looked at as a highly effective remedy for all kinds of conditions. read more