5 Pot Stocks Poised to Strike It Rich From Recent Legalization Moves

New markets mean new opportunities. One of the newest recreational marijuana markets is New Jersey, which is gearing up for legal adult-use pot sales as we speak.

In this video clip from Motley Fool Live, recorded on March 12, longtime Fool contributor Eric Volkman runs down the five companies active in this potentially very lucrative market in a discussion with healthcare and cannabis bureau chief Corinne Cardina.

   

Corinne Cardina: Let’s talk about some of the multi-state operators (MSOs) that could benefit from some of these new markets. Anything come to mind specifically?

Eric Volkman: Specifically, yeah. If you look at New Jersey, it has gotten the ball rolling, although that’s going to take some time. The governor said they’ve established, what do you call it? It’s a Cannabis Regulatory Commission, which is the official state body for matters cannabis.

They just finished — sorry the governor, Phil Murphy — just completed his appointments for the Commission. He’s saying now that in order to get an actual recreational market up and running, it’s going to take anywhere from six to nine months, which sounds like a lot.

But then again, you have Virginia, where you have to wait almost three years. I guess [New Jersey] is not too bad.

In terms of actual companies, there are a few openly traded companies that are already active in New Jersey. Let’s keep in mind though that Jersey at the moment, by my count, has only 15 “Alternative Treatment Centers” i.e. dispensaries. I love that language, Alternative Treatment Center.

Anyway, you have, again by my count, you’ve got five companies that are active there and they all have either one or two dispensaries. We’re not talking the best market here. You’ve got Columbia Care (OTC:CCHWF), which has one dispensary in South Jersey. You have a dispensary brand called Rise, which is from Green Thumb Industries (OTC:GTBIF), which we’ve talked about before. They have two.

In the northern cities of Paterson and Paramus. Then there is the Botanist from Acreage Holdings (OTC:ACRGF), which at some point maybe will be part of Canopy Growth because the two companies have a deal. They have one dispensary in Atlantic City… sorry, [one in] Atlantic City and one in a nearby municipality called Egg Harbor Township, which is actually right down the expressway from Atlantic City.

Curaleaf (OTC:CURLF), which is active everywhere, has one dispensary. It’s in South Jersey, not far from [Philadelphia], which is convenient. Finally, we have TerrAscend (OTC:TRSSF), which is at a town called Phillipsburg which is on the Pennsylvania border, a bit north of Philly.

So you do have some representation. I would imagine that at least few of these guys are going to try to build out, as they can, their dispensary network. I think Curaleaf, from what I remember, has two additional licenses, so they’re almost certain to use them.

So if we had to zero in on one stock out of those to take advantage of that market, I’d stick my pin on Curaleaf. Again, like American legislation, generally, New Jersey is not going to be an overnight story. It’s going to take a while to develop. I would say that six to nine months might be optimistic, although they’ve got this commission up and running. It’s not going to happen anytime soon.

But as does and as it develops, I would keep an eye on these companies, particularly Curaleaf.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.