This week we saw Democrats sweep the Senate runoff in Georgia, giving the party control of the White House and now Congress for at least the next two years. 

And there’s a formerly beaten-down sector that has been on fire, mostly since the 2020 election: WealthPress trader Jeff Yastine is looking at pot stocks for 2021. 

And before Jeff gets to his personal picks to reel in profits, he thinks this is just the beginning of the sector’s rise. 

Why Pot Stocks are Hot for 2021

With Democrats in control of both chambers of Congress, it  means a more favorable backdrop for the pot industry — and pot stocks — for 2021 and beyond… 

Think federal legalization… new banking laws… 

But Jeff thinks there’s more to this story than just that. 

He has shied away from pot stocks before 2021 as far as owning or recommending them as good investments. Mainly because most cannabis companies have been big-time money losers. 

Jeff recommended his first pot stock to watch about a year ago when they were in a major downturn. At the time he called it the “pot stock apocalypse,” and suggested buying Innovative Industrial Properties (NYSE: IIPR). It’s a real estate company that buys and rents out cannabis warehouses and grow farms. 

He liked IIPR because it was generating substantial, growing profits on a consistent basis.

Here’s what Jeff wrote one year ago this week…

“If investors are still willing to assign a P/E ratio of 44 to the stock a year from now, and the company hits its earnings projections of $4.04 (a share in profits), that gets us a stock price of $177 — a gain of 128%.”

Lo and behold, IIPR’s stock price one year later is… $177! 

Nailed it! 

They don’t all turn out that way, of course. But it’s nice when they do. It shows the benefits of focusing on a company’s value relative to profits… opposed to relying on the story a company or industry tells about itself.

So here’s what’s interesting about pot stocks in 2021: Some companies are actually profitable! Or at least on the verge of being so…

Watch Jeff’s short video and let’s talk about names like Canopy Growth (Nasdaq: CGC), Aphria (APHA), Tilray (TLRY) and one over-the-counter stock — which he normally avoids — that he likes. 

And as always, send your investing questions to [email protected]. Be sure to subscribe to Jeff’s new YouTube channel to see all his videos. You can also follow him on Twitter and Facebook.

https://youtu.be/wowZ9UmZBCA