Safe Banking Act | How to make GREEN in the Cannabis sector скачать в хорошем качестве

Safe Banking Act | How to make GREEN in the Cannabis sector

How will the Safe Banking Act change the cannabis landscape, and should investors be positioning themselves now for the coming changes? Parts of the cannabis chain will benefit more than others. There will be three big changes this act will have to the landscape as I see them. The first is that cannabis companies would have a whole new world of financial tools at their fingertips, tools that are already available to every other business already. The second big change is that for federal tax relief! As of today, they're not actually engaged in a legal business in the eyes of the Feds. As a result, cannabis firms have been denied traditional business deductions on their taxes. Currently, they aren't allowed to deduct simple production costs. And the third major impact of the Safe Banking Act would benefit cannabis employees. As you know, the cannabis industry employs hundreds of thousands of people. They generally don't have access to 401K plans. Because under current federal law, cannabis wages are drug money. No bank wants to take on the risk of investing your drug money. The Safe Banking Act will open the way for more retirement accounts to these legit employees. So three big changes: banks and credit card companies are going to engage with the cannabis community as if it were any other legitimate business community. Legal cannabis companies will be granted federal tax relief similar to what any other business already enjoys. And cannabis employees won't be seen as drug-laundering criminals any more. So let's move into part two of this analysis: if the Safe Banking Act passes, how will this affect investable cannabis stocks? In short, as a whole, not much. MedMen doesn't need some tax break to turn their business from good to great. If a farmer has a 401K he's not suddenly growing triple the flower and double the margins. As a whole, the Safe Banking Act largely doesn't affect the investable side of cannabis - just the day-to-day side - but there are a few very notable exceptions. And they're all in the pick and shovel space. The first - the biggie - Growgen. The stock everyone loves but I think is completely uninvestable. Yes, I've told you this before, in a video three months ago, and the stock is down thirty percent since then. Here's why I think it could get worse. In a nutshell, Growgen is simply a middle man between growers and cultivation manufacturers, making a small profit along the way. I don't think their business model is scalable. This Safe Banking Act - I predict - is going to end that business model. Scotts Miracle Gro and Hydrofarm are going to interact directly with growers within a YEAR of this bill passing. Cutting out the middlemen like GrowGen. So anyone who is very bullish on Growgen should ask themselves, and I don't mean this confrontationally, but ask yourself - have I been inside a Grow Generation store before? How much money have I spent there? Am I familiar with how big commercial growers purchase their cultivation supplies? Without a firm grasp on the nuts and bolts, boots on the ground so to speak, investors - I think - are misunderstanding Growgen. Or they have been misled by someone else who misunderstands Growgen. But mark my words - this business model is in trouble. Scott's and Hydrofarm, are fantastic pick and shovel plays and they will benefit massively from the Safe Banking Act. They too are down from recent highs, but not because of revenue misses - not at all. They've been punished just because investors have lost hope in near-term federal legalization. Investors have grown impatient and sold out. Meanwhile, Hydrofarm has spent the last six months gobbling up smaller brands, acquiring Heavy-16 and Aurora. A path Scott's, which owns Hawthorne Gardens has been following for five years now, gobbling up all the smaller cultivation suppliers. That's key, I really support M&A in this space. Get all these brands under your umbrella just before you cut out the middleman and sell directly to the grower - that's what Scott's and Hydrofarm are thinking in their board rooms. So prepare yourself for the benefits that the Safe Banking Act will bring about. If you're directly in the industry, you should see Increased banking access, appropriate taxation, and access to standard retirement programs. And if you're an investor in this space? I hope you're eyeing a few good pick and shovel plays and running away from the middlemen. 🔴 Subscribe for more content just like this:    / @skylerjames   DISCLAIMER: This video is my opinion and should not be taken as legal, tax, or investment advice. I am not a certified financial, legal, or tax advisor. Always do your own due diligence and consult with your professional legal, tax, or investment advisors. Links in this description may be affiliate links, if you use these links I may earn a commission.