Five Stocks that May End Up, umm, Higher, if Marijuana is Legalized

Inhale...exhale...invest? Setting aside the personal concerns of drug warriors, the tea leaf readings suggest that marijuana will be decriminalized, if not outright legalized (and taxed for revenue) in the coming years. Savvy investors are wise to keep an eye on the future, so perhaps today's stoner holiday is a good excuse to consider which stocks might, in theory, benefit from a potential legalization of marijuana across America. Novartis: NVS Novartis is already positioning itself in the medical marijuana field, after it announced last week a deal with GW Pharmaceuticals (GWP) to commercialize Sativex across the globe. Sativex, as one might guess, is a drug made directly from the Cannabis Sativa plant. It is approved for use in many European nations to treat some side effects of Multiple Sclerosis. With its foot already in the medical marijuana market, Novartis might have a ready-made supply of marijuana plants to grow and sell. Reynolds American: RAI With smoking cigarettes losing its luster in the last 20 years, tobacco companies are hard-pressed to find new products to grow with. Might marijuana make sense for them? It certainly seems possible. With the techonology already in place for turning tobacco plants into finished, smokeable products, perhaps the world is not far from purchasing packs of Marlboro 420's at the local party store. Johnson & Johnson: JNJ Would a company that manufactures a major pain-relief drug (Tylenol, among others) have an interest in controlling a potential marijuana pain-relief market? It would certainly be a play worth investigating. Eli Lilly: LLY Eli Lilly is another pharmaceutical that might want to dip its toes into the marijuana market, particularly if the drug proves a suitable replacement for Lilly's Prozac, Cymbalta, and Cialis. While depression, anxiety, and ED are no laughing matter, the ability of adults to treat any or all of those with medicinal marijuana might drive Eli Lilly to new heights. Pepsi: PEP Is it possible to even consider the market effects of legalizing marijuana without contemplating its impact on the snack food industry? Pepsi carries a wide range of products seemingly geared toward heavy snackers, including smoker-favorites Mountain Dew and Doritos.