Let's first differentiate two actions states have taken with respect to marijuana. Decriminalization refers to the relaxation of criminal penalties associated with personal marijuana use. Oregon was the first state to decriminalize marijuana in 1973. The state imposed just a $100 fine for possession of up to an ounce.
Over the next 15 years following Oregon's legal change, at least a dozen other states decriminalized marijuana. But decriminalization merely lowered or removed the sting from anti-marijuana laws. Manufacturing and selling marijuana remained illegal.
Tilray wins hands down in terms of stock price momentum. Over the last month, Tilray's share price has nearly quadrupled. Cronos Group and Canopy Growth have come close to doubling during the same period. Shares of Scotts Miracle-Gro, on the other hand, are down slightly.
In what is being seen as a major boost for the legal marijuana industry, President Donald Trump has agreed to give the go-ahead to states to decide how to regulate marijuana.
For those coming in late, Attorney General Jeff Sessions had rescinded a memo that shielded marijuana operations from enforcement of the federal ban on marijuana in states that have legalized the drug.
Currently, marijuana is legal for medical use in 29 U.S. states, and for recreational use in eight states.
Whether the U.S. marijuana industry "only" doubles or more than triples in size over the next few years, there's one top stock that I think is especially poised to benefit from the growth: Scotts Miracle-Gro (NYSE:SMG). The reality is that there aren't many good choices for U.S. investors right now. Most U.S.-based marijuana stocks are penny stocks that come with risks including low liquidity levels.