Some states are dealing with pot shortages in 2021 that are making it hard for marijuana companies to keep up with demand.
Let’s take a look at what marijuana stock investors need to know about the potential pot shortages in 2021.
- The most recent states to deal with pot shortages in 2021 are New York and New Jersey.
- Both states are ramping up efforts to produce more marijuana but a unique set of hurdles make it hard to do.
- The biggest problem is that marijuana is still illegal at the federal level.
- That means that growers can just reach out across state lines to get their hands on more supply.
- Instead, everything has to be grown and sold locally.
- That sounds like a dream for local growers but there’s another issue: financing.
- Not many banks are willing to throw financing behind a business that doesn’t have the okay from the federal government.
- As a result, local growers can have problems getting their businesses off the ground.
- It’s not just New York and New Jersey that have run into these types of problems.
- Oregon dealt with a similar issue earlier this year when it couldn’t keep up with the demand for marijuana.
- Another state with a similar conundrum is New Mexico.
- It’s looking to legalize weed soon and that will put a strain on the supply of pot in the state.
- This has some members of the medical marijuana community calling for restrictions to be removed on growing in the state.
- Those shortages could be good news for some pot stocks.
- Companies such as Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), GrowGeneration (NASDAQ:GRWG) could benefit from this.
- Increasing demand for marijuana means increasing prices.
- That extra demand could also result in eased restrictions that allow these companies to do business easier.
- Of course, the best news would be the federal legalization of recreational marijuana, but we’ll have to wait and see if that ever happens.
We’ve got plenty of other stocks news outside of marijuana to look into.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.