Jul 07, 2021 (WallStreetPR via Comtex) -- There are two dimensions to the cannabis investment theme: the commodity market's boom and bust cycle, and the legislative "arrow" of time.
The former is often working against investors, but over a shorter time frame. It has to do with the frequent tendency for some of the biggest players to overleverage balance sheets in a gold-rush effect, and then get caught with their pants down when there are suddenly many more big players and supply is glutting.
The latter is always working for investors. Period. That fact seems to be confirmed around every important corner. It's as if there were drama, and then the scoreboard comes up the same. Time after time. It's legalized far more than not. Except at the national level, and we'll get to that.
Both of these dimensions are occasionally lined up in harmony. And the stocks in the space boom higher, especially when risk assets are generally favored. But we would also point out - as outlined in the story below about Eco Innovation Group /zigman2/quotes/209717851/composite ECOX -7.92% - that technology and innovation is also factor.
In any case, as promised: the federal level prohibition against possessing or selling marijuana is seen as a roadblock to national movement that once-and-for-all ends this snail's pace state-by-state process of gradual creeping legislative overhaul towards legalization.
But the tenor of recent language from the highest court in the land is promising for legalization advocates. According to a recent piece on CNBC.com:
"Supreme Court Justice Clarence Thomas on Monday said that federal laws against the sale and cultivation of marijuana are inconsistent, making a national prohibition unnecessary. 'A prohibition on interstate use or cultivation of marijuana may no longer be necessary or proper to support the federal government's piecemeal approach,' Thomas, one of the court's most conservative justices, wrote in a statement. The court's decision not to hear a new case related to tax deductions claimed by a Colorado medical marijuana dispensary prompted Thomas to issue a statement that more broadly addressed federal marijuana laws.
This is a bold step, and it may come to have important consequences for stocks in the space, such as cbdMD Inc (nyseamerican:YCBD), Curaleaf Holdings Inc /zigman2/quotes/205334348/composite CURLF -2.13% , Eco Innovation Group /zigman2/quotes/209717851/composite ECOX -7.92% , Tilray Inc /zigman2/quotes/209129655/composite TLRY -1.44% , GrowGeneration Corp /zigman2/quotes/207254713/composite GRWG -0.45% , Canopy Growth Corp /zigman2/quotes/200603886/composite CGC -2.55% , Aurora Cannabis Inc /zigman2/quotes/210559470/composite ACB -3.17% , Medical Marijuana Inc /zigman2/quotes/210250025/composite MJNA 0.00% , and ETFMG Alternative Harvest ETF (nysearca:MJ)
We take a closer look at some of the more interesting stories in the space below.
Eco Innovation Group /zigman2/quotes/209717851/composite ECOX -7.92% , as noted above, is perhaps the most interesting name on this list because it hasn't anywhere near as much market awareness as the other names, but it may be developing a piece of technology that stands to redefine much of what the other names are currently hoping to do.
The company is an incubator for innovations that stand to advance green technology. This mostly seems to apply to sustainable or renewable energy solutions. Even in its latest case - an advancement in bioactive compound extraction with applications in the cannabis and CBD space - it is finding an alternative to CO2.
Eco Innovation Group /zigman2/quotes/209717851/composite ECOX -7.92% recently announced coverage in Chemical Engineering magazine's online portal, ChemEngOnline.com , of the Company's breakthrough glycerin-based supercritical extraction technology. The article may be found ChemEngOnline.com/supercritical-glycerin .
According to the company's release, the article features a strong overview of the technology, including how it is unique and differentiated in the marketplace for equipment designed to extract natural bioactive product compounds from plants, such as cannabidiol (CBD), tetrahydrocannabinol (THC), and other active compounds from Cannabis sativa plants.
The article also contains commentary from the extractor's inventor, and ECOX advisory board member, Demitri Hopkins: "Most processes using supercritical fluids -- such as carbon dioxide -- to extract plant products end up with highly viscous products that are difficult to work with. The glycerin concentrates generated from this system can be used directly in a range of products, and allow standardized concentrations of the target compounds."
That last sentence in the quote is probably the most important. You can't standardize concentrations with current extractors.
As noted in the article, the intellectual property behind the glycerin extraction technology has been exclusively licensed to ECO Innovation Group, and fabrication of the prototype is underway at Fluitron Inc. ( www.fluitron.com ).
"We are excited to receive such favorable coverage in such a highly esteemed and widely respected industry publication, and we continue to be so grateful to have access to Demitri's brilliant mind, both through this breakthrough in extraction technology and as our valued advisory board member," commented Julia Otey-Raudes, CEO of ECO Innovation Group.