The Trend

How to Get your Piece of 646% Growth

We’ve heard it all before.

“I don’t want to invest in marijuana because I’m ethically opposed to it.”

While that’s good to know, we’re investors, traders, we’re looking to make money. 

And sometimes in order to make money, you have to buy even what you may not be comfortable with, including what’s turning out to be an explosive opportunity. 

Let me ask you this -- If you had the opportunity to see these one-year returns would you still turn away from the sector?

  • GW Pharmaceuticals (GWPH) jumped from $90 to $120
  • Kush Bottles (KSHB) soared from $1.25 to a high of $5
  • OrganiGram Holdings (OGRMF) jumped from 80 cents to $3.40
  • Canopy Growth (TWMJF) rocketed from $2 to a high of $14

Or would you turn away from the fact that the industry – currently valued at $6.9 billion – could be a $30 billion industry in four years? Better yet, according to Cowen & Company, it could be a $50 billion industry by then. 

Are you still turning away?

Understand this. In 2016, illegal marijuana sales topped $46.4 billion. Black market sales made up 87% of all sales just in the U.S.  That just goes to prove how significant the demand is, and how profitable it could become with legalization.

Better yet, as of November 2016, four more states legalized its recreational use, including California, Maine, Massachusetts and Nevada, which join Alaska, Colorado, Oregon and Washington.

Sales have been nothing short of incredible, too. For example, in 2016 alone, Colorado saw more than $1 billion in legal sales.  That tops the $996 million brought in for 2015.  Another new report suggests in its first year, legal marijuana could generate $8 billion in gross sales in California alone, where it will not be taxed or regulated like alcohol.

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In Nevada the projection is a whopping $6 billion, while Massachusetts is estimated to see around $1.5 billion in gross sales the first year.  Maine is projected to enjoy $290 million in gross sales annually. Plus, the election also saw its approval for medical use in Arkansas, Florida and North Dakota, as well as further rollback of restrictions on existing medical use in Montana. 

In Florida alone, it could generate up to $2 billion in annual sales. North Dakota could see $75 million just starting out. And advocates are now pushing for its legalization in Rhode Island, New Jersey, and Delaware. Canada is fueling the boom, too. 

In fact, commissioned by Prime Minister Justin Trudeau, the Task Force on Cannabis Legalization and Regulation in Canada is recommending the government regulate the production of marijuana while the provinces control the distribution and retail sales operations.  According to an October 2016 poll, 62% of Canadians support the move with legislation likely by the spring of 2017. If this happens, the estimated $5.3 billion in annual revenue collected by criminal dealers, could be sent to legitimate businesses, and smart investors’ pockets.

Better yet for investors, by 2021 analysts say Canada could have nearly four million recreational marijuana users, creating a monstrous $4.5 billion industry.  The industry could balloon to $8.7 billion shortly after, as marijuana retail sales just in Canada could surpass beer, wine and spirit sales combined.  Down the line, it could be a $22.6 billion industry once you factor in security, transportation and even the testing labs. 

It’s so big that Canadian growers may have to produce up to 600,000 kilograms of marijuana every year – just to keep up with demand. And again, smart investors are taking notice.

Again, controversial or not, sometimes you have to invest in what you may not be comfortable with to make sizable returns. That’s been proven time and time again.