Merrill Lynch is bullish on the medical marijuana business.
In a 45-page report that explores the marijuana-related investment landscape, the investment management arm of Bank of America concludes that “medical cannabis has high potential,” according to Philly.com.
The report provides information about some publicly traded ancillary marijuana companies but does not discuss investing in any company that is “directly in the business of growing, processing or selling marijuana products for medical or personal use under state laws.”
One area Merrill Lynch is especially excited about is cannabis testing.
The report, which is not available to the public, includes basic information about cannabis, its benefits for several medical conditions, an outline of state medical marijuana laws and results of public surveys about cannabis, according to Philly.com.
The report could give a credibility boost to marijuana stocks, which have suffered through several weeks of bad press.
Last month, the North American Securities Administrators Association issued a statement warning investors about investing in marijuana (and bitcoin and binary options), which was then adopted by officials in both Colorado and Washington State.
And Anthony Wile, the chief investment strategist at High Alert Investment Management, also warned Canadian investors in a November Globe and Mail editorial to stay out of cannabis until the industry and its regulatory landscape have stabilized.