Passage of the U.S. Farm Bill has ended a five-decade-long ban on industrial hemp (defined as cannabis with less than 0.3% THC), allowing nationwide legal hemp production in all 50 states. Importantly, this should allow companies to deduct business expenses against their taxes (IRS Section 280E), which should significantly increase the bottom line of most companies that carry hemp products.

The Farm Bill also lifts restrictions on banking, advertising, and marketing. Hemp/CBD companies will also be able to accept other forms of payment other than cash, including debit and credit cards. Today, we have identified three little-known hemp CBD stocks that have significant upside potential from the passage of the U.S. Farm Bill.

Hemp was recently pushed into the spotlight after Kentucky Senator Mitch McConnell advocated for its legalization. McConnell's support ultimately led hemp to be legalized in the recent passing of the U.S. Farm Bill. It was legalized mainly because it contains less than 0.3% THC and is considered the non-psychoactive cousin of cannabis. Essentially, hemp does not give the consumer euphoric effects but offers therapeutic and relaxing effects similar to marijuana. With the passage of the Farm Bill, it is projected that hemp will be a major growth driver for the overall cannabis industry. According to data compiled by MarketsandMarkets research, the global cannabis market is expected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023.

Go ahead and talk about marijuana and marijuana stocks -- it's no longer considered taboo. Following the passage of the Cannabis Act in Canada, and taking into account that two-thirds of all U.S. states have now legalized weed in some capacity, the legal pot industry has been validated as a legitimate business model. As a result, we've seen sales expectations and market caps go through the roof.

With the cannabis edibles market in Canada set to take off after the official retail legalization date, currently set for Oct. 17, 2019, we may soon be looking at our next $1-billion industry. According to the Canadian federal government, products such as cannabis-laced soda, chocolates, tea and other similar items should be cleared for sale by end of the year. And analysts are now suggesting that edibles—including beverages—will most likely be the hottest sellers in Canadian retail stores once they become available. However, one potential stumbling block is Canada’s current inventory shortage and delays in working out the regulations with the provinces, which may very well delay the sale of edibles. Bill Blair, Canada’s minister in charge of the legalization, warned on Jan.

The marijuana industry has come a mighty long way in a very short amount of time. If we look back to 2005, Gallup notes that just a third of all Americans it surveyed wanted to see cannabis legalized in the United States. By 2010, even with favorability toward weed improving, not a single state had given pot the green light at the recreational level. Now, in 2019, marijuana is legal medically in 33 U.S. states, 10 of which also allow adults to consume it, and 2 out of 3 Americans are in favor of its legalization.

We’ve witnessed how the cannabis industry has grown over the last couple years, and now that recreational legalization is in full effect, it’s time to begin looking towards the future.  In which direction is the cannabis industry headed?  Will we see mostly dried flower, or will cannabis edibles and concentrates dominate the marijuana market?  Many industry experts and investors believe that the next big thing will be cannabis edibles and derivative products.  Does this make sense?  Ontario Licensed Producer Indiva Ltd. seems to think so.

For the most part, marijuana stocks are known as up-and-coming opportunities.

And that’s because cannabis companies—even the well-known ones—are still relatively small compared to the blue-chip names in today’s market.

So it’s quite surprising to see Aurora Cannabis Inc (NYSE:ACB), a pot stock, mentioned in the same sentence as Apple Inc.(NASDAQ:AAPL), one of the biggest companies in the world by market capitalization.

 Aphria Inc.’s (APHA.TO 0.99%) recent winning streak that saw its stock surge almost 50 per cent in a four-day span was put at risk in early trading Tuesday.

The cannabis producer’s shares fell as much as 11.9 per cent at the start of trading before briefly breaking into positive territory. The company’s stock soared 47 per cent during a four-day winning streak that started last Wednesday.

While there was no particular news tied to the company’s recent climb, the sharp move higher signaled renewed investor confidence after the stock took a hit in December on the heels of a report from short sellers Quintessential Capital Management and Hindenburg Research. The report accused Aphria of buying a number of Latin American assets at highly inflated prices.

The New Year’s rally in pot stocks has sent assets in the first marijuana exchange-traded fund back above $1 billion for the first time since Oct. 18, the day after Canada legalized recreational pot.

The Horizons Marijuana Life Sciences Index ETF (HMMJ.TO) reclaimed the $1 billion mark on Monday. Assets in the fund had dipped as low as $624 million on Dec. 21.

The Horizons Marijuana ETF, better known by its ticker HMMJ, was the first exchange-traded fund to track the cannabis industry but it’s no longer the biggest. That honor belongs to the U.S.-based ETFMG Alternative Harvest ETF (MJ.N), which surpassed US$1 billion in assets this week for the first time.

Analyst expects uptick in short sellers, activists following spotlight on corporate governance

A leading cannabis analyst said investors should expect an increase in shareholder activism in the marijuana industry after several critical reports highlighted inadequate corporate governance practices that led to management shakeups. Matt Bottomley, director of equity research with Canaccord Genuity, said at a panel discussion in Toronto there are some “justified criticisms” in the cannabis market amid recent short reports that targeted Canadian pot companies. “There’s going to be winners and losers in this space and I think short-sellers' reports could, down the road, put some spotlights on those,” he said