Every so often, a new sector comes through and blows the entire market back on its heels.
From the dot com era to the evolution of computers – these industries have sent the market skyrocketing leaving naysayers and doubters behind.
And now, the newest market revolution is here and it could be the trading opportunity of your lifetime.
Here’s what you need to know…
Marijuana is the Future of Your Profits
Legalized marijuana is one of the fastest growing industries in the U.S. Currently it is projected to grow from its current annual revenues of $9.2 billion to $47.3 billion in 10 years in the US and to $57 billion worldwide…
This is thanks to many things, like big corporate players already stepping into the cannabis ring and product innovations, like cannabis-infused beverages hitting the shelves every day.
Currently, in the US, 30 states have legalized medicinal marijuana and nine of those have legalized recreational marijuana. With the success of U.S. trendsetting states like California, Colorado, Oregon, and Washington, it seems likely that the other 20 states will soon follow suit.
Not to mention, the demand for legalized marijuana is off the charts with 89% of Americans supporting the use of medicinal marijuana.
And when you consider that medicinal marijuana can be applied to cure or alleviate symptoms of diseases like cancer, Alzheimers, glaucoma, epilepsy, anxiety, multiple sclerosis, reduction of pain/nausea from chemotherapy, arthritis, lupus and Parkinson’s – it makes sense that 69% of physicians nationwide support legalization of medicinal marijuana as well.
So, it’s clear that the legalized marijuana market is here to stay.
But the market doesn’t come without it’s faults…
Hampering growth for the time being is that currently marijuana is illegal in the US at the federal level. President Obama’s prohibition on interfering with the right of states to provide a legalized marijuana market has been reversed by Jeff Sessions creating some uncertainty about how the industry will fare going forward. There is growing support in Washington to legalize marijuana with many policymakers in support of the Marijuana Justice Act, a bill that legalized marijuana at the federal level.
Given the high public demand for legalized marijuana, the amount of revenues available at the state level and the cost of federal attorneys to prosecute legalized marijuana operations at the state level, it is not expected that the feds will negatively impact growth.
That said, one way to make a pot play is to consider companies in countries that have legalized marijuana like Canada and the U.K. that are listed on U.S. exchanges.
Canadian company Canopy Growth Corp (NYSE: CGC) is the world’s largest publically traded weed company producing and marketing both medicinal and recreational strains. With annual revenues of $60 million it has attracted the likes of spokesperson and rapper, Snoop Dog as well as beverage giant Constellation Brands who now owns 9.9% of CGC. This relationship opens up the door for cannabis-infused beverages.
Canadian pot producer Cronos Group (NASDAQ: CRON) became the first pure-play marijuana stock on the NASDAQ. Cronos is also in partnership with MedMen, a large cannabis cultivator and retailer in California. Another Canadian producer is Tilray (NASDAQ: TLRY). Aleafia Health has also submitted an application to be listed on the Nasdaq.
U.K.-based GW Pharmaceuticals (NASDAQ: GWPH) is on the market with Epidiolex, the first FDA-approved drug derived from an active marijuana ingredient. This drug treats two rare and severe forms of epilepsy, Lennox-Gastaut and Dravet syndromes. With a market cap of $3.9 billion, this is yet another solid way to play the pot market.
There are already some huge US-based companies that are all-in on this huge emerging market.
Pharmaceutical company, AbbVie (NASDAQ: ABBV) has released an FDA-approved drug Marinol which alleviates nausea and vomiting in chemo patients as well as AIDS patients who have lost their desire to eat. This big pharma player with a market cap of $139.9 billion sells many other non-cannabinoid drugs and a great way to play the marijuana trend without investing directly in plant-based businesses.
Scotts Miracle Gro Company (NYSE: SMG) has invested $500 million in a huge push into pot through hydroponics and has purchased a hydroponic equipment maker Sunlight Supply, Inc.
There are also numerous service business plays to consider.
For example, General Cannabis Corp (OTC: CANN) with a market cap of $128.7 million provides a host of ancillary services to pot companies including real estate, consulting, business development and security.
Innovative Industrial Properties, Inc (NASDAQ: IIPR) with a market cap of $139.6 million is a medical marijuana focused Real Estate Investment Trust (REIT) with 5 properties located in the US.
mCig Inc. (OTC: MCIG) with a market cap of $121.8 million is a diversified holding company offering technology and consulting with products including vaporizers, media assets, growers, cultivators and dispensaries.
Beverage makers are even getting in on the action creating new pot-infused concoctions.
Constellation Brands (NYSE: STZ), the maker of Modelo beer and Svedka is actively developing cannabis-infused non-alcoholic beverages and expected to release them in 2019.
European beverage giant Heineken’s (HEINY) has purchased Lagunitas that produces a THC and CBD infused sparkling water called Hi-Fi Hops.
Molson Coors Brewing Company (NYSE: TAP) with a $14.6 billion market cap is in talks with four cannabis companies to develop cannabis-infused beverages including Aurora Cannabis and Aphria Inc. (OTC: APHQF).
The bottom line is… the time is now to invest in this market before it’s too late.
Peter Thiel’s private equity firm has already raised over $100 million – with the fund hitting $12 billion just nine months later.
John Boehner went “all-in” on this market – with his startup now valued at $2.8 billion.
And billionaire William Wrigley Jr. – of Wrigley gum fame – has left the gum and candy business and raised hundreds of millions for this market.
And that’s not all.
Major players like Evan Eneman (former director at PricewaterhouseCoopers), Karan Wadhera (former Goldman Sachs executive), and serial entrepreneur Ted Chung have dove headfirst into this market.
Bank of America Merrill Lynch and Goldman Sachs have already facilitated a deal worth over $3.8 billion in this market… with more multibillion deals to come in 2019.
This is astounding considering how bearish investors are for 2019. Despite rising interest rates and a global economic slowdown – this one tiny market is generating billions.
Now, as the New Year approaches, you should know that 2019 is gearing up to see a record number of potentially high-flying cannabis IPOs hitting the market.
Right now, four private cannabis companies are primed to unleash up to $12 billion in new wealth by January 31…
In fact, each one of these companies is capable of generating between $500 million and $3 billion for investors the very day they go public.
But this is just the beginning… because we could be seeing as many as 42 millionaire-making IPOs hit in the next 90 days.
Which means if you want in on this marijuana money storm, you need to act now.
To find out all the details on each of these four IPOs – and how you can get in on them (even if you’ve never invested a dollar in your life), click here now.
Good Trading,
Tom Gentile
America’s #1 Pattern Trader
