VIDEO — Fund Manager: Bright Future for Cannabis Not Reflected by Stocks

MORE Act shows support for cannabis reform, but expected to stall at Senate

Last Friday (April 1), the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act cleared the House for the second time. In the lead-up, cannabis stocks faced another period of hype followed by deflating momentum.

Ahrens explained that this volatile period was expected based on ongoing misunderstandings in the market.

He said he agrees with the consensus that, in its current form, the legislation has no chance of clearing the Senate. However, the expert explained why he thinks the progress of this bill may be different this time.

“There’s a lot more support for some type of federal reform for cannabis really coming from both sides of the aisle, more than at any point in the past,” Ahrens said.

Instead of sweeping federal legalization, Ahrens expects to see incremental changes by way of compromise through other bills. Chief on his wish list is the ability to change the banking rules affecting multi-state operators in the US. “Right now, cannabis companies can’t do banking in the US,” he said.

These rules also prevent the biggest operators from listing on major US exchanges, and from securing financing and building business relationships with big-name investment banks.

The cannabis expert preached a long-term outlook when it comes to the industry. For him, immediate double-digit gains are no longer available based on pure hype.

“Be patient, be very patient and have a long-term focus,” Ahrens said.

Watch the interview above to hear the rest of Ahrens’ thoughts, including his recap of the year so far for US cannabis stocks, and why he thinks investors keep trading Canadian names based on news that only affects the US.