(NEW YORK)–Sept. 20, 2019–CBD sector gets upgrade as Mitch McConnell to push FDA to establish regulatory rules for CBD products, which could provide catalyst for major short covering event in an already oversold sector.
In major news for sector, Senate Majority Leader Mitch McConnell (R-KY) is moving to insert language into a congressional spending report that calls on the Food and Drug Administration (FDA) to clear a path for the lawful marketing of CBD products.
The FDA has said that allowing CBD to be sold as food items or dietary supplements would require it to develop alternative regulations that could take years to complete without congressional action, and this has taken a toll of the entire CBD sector over the past several months.
But McConnell, who was the chief proponent of a hemp legalization provision of the 2018 Farm Bill, isn’t interested in waiting around. In draft language shared by the U.S. Hemp Roundtable on Tuesday, the senator is asking FDA to “issue a policy of enforcement discretion with regard to certain products containing CBD” within 120 days.
CBD Sector Upgraded
In alert to subscribers, Ludlow Research made note that some CBD stocks are down nearly 50-70% from their recent highs, and any bullish change to regulatory environment could trigger short covering within the sector as a whole.
The research firm stated, “Not all CBD companies may be able to comply and survive these new regulatory changes coming, but the ones who can now offer real big upside potential after months long correction within the sector”
View sector alert here https://ludlowresearch.com/reports
CBD Special Situations
MetWood (OTC:MTWD) is a recent merger that brings public a health supplement manufacturer with FDA register production facilities. MTWD provides companies FDA registered production and labeling solutions for healthcare and consumer supllement products. These services MTWD offers could be some of the exact requirements the FDA may ask of CBD companies, thus making MTWD an unique play to win on pending FDA regulations for CBD sector.
LinkRes Pets (OTC:LRSV) is an interesting CBD play as its core focus is on CBD pet supplements, which may place them in better position to ride under any new rules. LRSV also announced expansion plans for non-CBD supplements and health nutraceuticals for pets. The pet market is a unique market as people will tend to forgo discrenary purchases to pay for their pets as many considered them as core members of the family. LRSV is way to play the CBD pet sector, which may be lower down on any regulatory level, with additional flare of pet care investor interest.
CBD Stocks Placed on Watch
CVSI CV Sciences
KGKG Kona Gold Solutions
NBEV New Age Beverages
HIPH American Premium Water
MCOA Marijuana Company of America
BKIT Biohemp International
RMHB Rocky Mountain High Brands
RLBD Real Brands
You can also play this sector through ETFMG Alternative Harvest (NYSE:MJ), which is an ETF that tracks the cannabis and hemp sector.
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