U.S. Pot is Losing the Race to Canada
Publicly traded marijuana companies continue to ride a wave of optimism. Before the decade is out, pot could be on its way to being legal in many more states.
When that happens, the tiny pioneers of this market could balloon into industry giants — vastly rewarding anyone who was brave enough to invest at the start of the wave.
But you don’t have to wait for more state governments to get their acts together to benefit from the next marijuana investment surge.
In fact, I predict the next big pop could happen in a matter of months, even weeks.
When it does, stocks that are trading today for just a few dollars, even pennies, could soar 773%… 1,120%… maybe even as high as 9,108%.
The only hitch is that they don’t trade on the major U.S. stock exchanges.
That’s because the next major breakthrough in marijuana legalization is set to occur north of the border.
Canada’s Exploding Customer Base
Today, there are 38 companies with government permission to grow and/or sell marijuana.
And the customer growth rate has been incredible for these companies.
At last count, Health Canada reported that at the end of 2017 there were almost 130,000 registered users of medical marijuana.
This is a 32% increase since the last recorded number of 98,000 was reported in September 2016.
That’s a lot of new revenue heading to just 38 companies.
Now just imagine what will happen to revenues if (and when) Canadians don’t need a prescription!
Why Canada’s Marijuana Stocks Will Skyrocket (Again)
Canada’s public marijuana companies are highly reactive to any news that points toward legalization.
They spiked when Trudeau affirmed he was in favor of allowing marijuana for recreational use.
His election caused another upward blip, as did the announcement that he had formed a committee to study the matter.
The committee’s final results bolstered investors’ confidence as well.
But don’t think you’ve missed out on all the profits yet.
Remember, most people who’ve bought the marijuana stocks were speculating on pending legalization.
Meaning the rest of the investment world is waiting for laws to actually go into full effect before jumping in.
That’s why you still have an opportunity to buy these stocks at a good price.
And rest assured, all of our trend analysis has us convinced that nothing can stop the Canadian legalization process.
When it happens, it’s going to open up a huge market.
Right now, Canada’s medical marijuana industry is valued at over $200 million. While it’s tough to put a number on the illegal market, some estimates put the total marijuana market at C$3 to C$4 billion.
To get an idea of how quickly sales could ramp if legalization occurs, we can look at Colorado in the United States.
Voters passed a law allowing marijuana for recreational use in 2012, with the first legal sales starting in January 2014.
According to ArcView Market Research, Colorado’s retail marijuana market brought in $675 million in revenue in 2014. By 2016, sales had nearly doubled to $1.3 billion.
There’s every reason to believe legalization in Canada would lead to even better results.
After all, Colorado is just one state. Canada is an entire country.
By some estimates, the Canadian marijuana market could balloon to C$5 billion in short order. CIBC projects that sales could grow to top C$10 billion a year.
That’s a lot of room for growth for the industry, and your bottom line too!
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily
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