Checking in with the explosive hemp industry
The cannabis stock sector is booming, with legalization and decriminalization of marijuana in the United States and abroad rapidly expanding. Investors want to know more about the cannabis investment opportunities from industry-leading experts.
Today, we chatted with Jim Higdon, Co-founder and CCO of Cornbread Hemp. Higdon worked briefly for the New York Times before returning home to write his first book, “The Cornbread Mafia.” Published in 2012, the Cornbread Mafia tells the story of the biggest domestic marijuana syndicate in American history. Jim leveraged his expertise and connections in the hemp industry to co-found Cornbread Hemp.
Schaeffer's: What is your background in the cannabis industry and where did your passion originate?
Jim Higdon: I began my career as the author of The Cornbread Mafia, a nonfiction account of the biggest marijuana syndicate in American history set in my Kentucky hometown. The success of the book led me into a journalism career, where I covered cannabis policy for POLITICO and Kentucky news for the Washington Post. In 2019, I left journalism to co-found Cornbread Hemp with my cousin, Eric Zipperle. Together, we have created the top hemp brand from Kentucky.
Schaeffer's: Tell our readers more about Cornbread Hemp and its contributions to the cannabis industry. Any insights/experiences would be great.
Jim Higdon: Cornbread Hemp is leading the charge on the legal side of the dividing line between cannabis and hemp. We are a hemp brand that is maximizing our products’ THC level, while still remaining compliant with federal law. That makes us the only brand to offer certified organic THC in our products, like our full spectrum CBD gummies. USDA organic THC is the future for top-quality cannabis brands like Cornbread Hemp.
Schaeffer's: Has the rapid growth in the cannabis market overall correlated comparable rapid growth in the hemp-focused industry?
Jim Higdon: Cannabis markets boom inside of the bubbles of their respective metropolitan areas: Los Angeles, Las Vegas, Chicago, etc. Every cannabis business must have a supply chain that exists within that state’s boundaries. The hemp industry has no such restrictions, and therefore is capable of nationwide scalability in ways that state-legal cannabis simply is not. For this reason, we think that the best growth in the cannabis industry in the near future will be with hemp brands, not state-legal cannabis brands.
Schaeffer's: What are the best NASDAQ- or NYSE-listed cannabis stocks, in your opinion? Why?
Jim Higdon: When I’m asked about which US-based cannabis stocks are best to buy, I always steer investors towards companies that service the ancillary cannabis market without any exposure to state licensing requirements -- like The Scotts Miracle-Gro Company (NYSE:SMG). The realistic time frame for Congress legalizing cannabis is further away than most investors would prefer.
*This article is published for purely informative purposes. Cornbread Hemp's opinions are not necessarily a reflection in any way of those of Schaeffer's Investment Research. We publish information about companies in which we believe our readers may be interested. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalized advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as SIR's solicitation to effect, or attempt to effect, any transaction in a security. Investments in the securities markets, and especially in options and futures, are speculative and involve substantial risk. The information that we provide or that is derived from our website should not be a substitute for advice from an investment professional. We encourage you to obtain personal advice from your professional investment advisor and to make independent investigations before acting on the information that you obtain from SIR or derive from our website.*