How to Cash in on California’s Cannabis Explosion

California completely legalized cannabis for medical and recreational use – promising to spark a $20.2 BILLION industry in the Golden State alone. By getting in on the ground floor of this exceptional opportunity, you could have the chance to pocket life-changing windfalls thanks to this historic event. And one pot stock expert has his sights set on three stocks he expects to skyrocket following this crucial announcement. Get the details here.

---

Marijuana Legislation Sparks the Most Profitable Opportunity of 2018

A momentous government announcement just changed the face of legal marijuana… forever. California is set to become the largest marijuana market in the world, promising to spark $20.2 billion into this booming industry. Make no mistake: This one historic event could mint the next marijuana millionaires. Click here to learn how to capitalize on this now.

Top 4 Pot Stocks Set to Soar in Dec 2018

Stake your claim in this post-prohibition profit opportunity now — before it’s too late.

In just a moment, I’ll tell you about 4 pot stocks that are poised to soar in 2019.

You’ll get everything you need to invest right away — and you’ll learn why the bull run in pot stocks has only just begun.  In fact for an idea of the kinds of returns we’re looking for, here’s what happened to other pot stocks in the first bull run.

Again, the Opportunity is Still Hot

Before we jump into four of the top ways to profit from the marijuana craze, let’s look at why the boom has only just begun.

Reason No. 1—Americans Overwhelmingly Support Legalization

A growing majority of Americans fully support its legalization, which has led to its decriminalization and the potential for significant cash inflows.

In fact, 66% of Americans now support legalizing marijuana, another new high in Gallup’s trend. The latest figure marks the third consecutive year that support has increased.

Legalizing the use of marijuana was an unpopular idea when Gallup first asked Americans about it in 1969 — just 12% at that time said it should be made legal. Support grew in the 1970s but stood in a 20% range until the new millennium, when momentum for legalization picked up again. Since 2000, support for legalizing marijuana has trended upward, reaching majority support for the first time in 2013.

That’s not all.

Just last year, $8.5 billion was spent on marijuana just in the U.S., according to “The State of Legal Marijuana Markets” report published by ArcView Market Research and BDS Analytics. However, that’s just a fraction of what’s possible by 2019.

The Marijuana Business Factbook projects that U.S. cannabis sales will hit $22 billion by 2022.  ArcView Market Research thinks it could be even higher, at $23.4 billion by 2022.

All as more states hop on the bandwagon.

Already, nine states and D.C. have legalized marijuana for recreational use.

As more states move to legalize its use, sales will skyrocket, in our opinion.

“The train has left the station,” said Rep. Earl Blumenauer, D-Ore., a leading marijuana reform advocate in Congress, as quoted by NBC News. “I see all the pieces coming together… It’s the same arc we saw two generations ago with the prohibitions of alcohol.”

Reason No. 2 — Canada Just Legalized Marijuana on October 17, 2018                                   

On October 17, 2018, marijuana became legal in Canada.

But no one expected the demand to be as strong as it’s been.  In fact, according to Fortune, the country can’t keep up with the pace of demand.  Retail shops are nearly sold out.

Halfway across the sprawling country in Manitoba, Manitoba Liquor and Lotteries warned that shortages for some products could last months, says USA Today.

It’s gotten so bad that stores have closed until the supply problem is fixed.

That’s just a sign of what’s to come.  If sales are that strong on day one, just imagine what’s possible moving forward.  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 thereafter, as marijuana retail sales just in Canada are likely to surpass beer, wine and spirit sales combined. That’s big money.

“Let’s be clear: the cannabis industry is real, it is here to stay, and we believe there is money to be made,” wrote Scotia Capital’s Oliver Rowe and Ben Isaacson, as quoted by Marijuana Business Daily.

The bank forecasts a surge in demand in 2019 and 2020 to about 1 million kilograms (2.2 million pounds) and 1.13 million kilograms, respectively, driven by new product formats, new consumers and higher daily usage

In short, this approval could set off another boom.

Reason No. 3 — Corporate America is Waking up to the Opportunity

Constellation Brands just increased its stake in Canopy Growth (CGC) by $4 billion.

That comes just 10 months after Constellation first took a 10% stake in Canopy to help create nonalcoholic cannabis-infused drinks and other products.

Constellation’s investment in Canopy — the biggest deal in the marijuana industry — shows just how far traditional alcoholic beverage companies are willing to go to find growth.

As sales of beer fall in the United States, brewers have begun to bet that legalization of marijuana around the globe, especially the United States, will continue to build momentum and sales of cannabis products will take off.

Molson Coors even listed legal cannabis among the biggest possible risks to its business in its annual shareholder report.

“The emergence of legal cannabis in certain U.S. states and Canada may result in a shift of discretionary income away from our products or a change in consumer preferences away from beer,” they noted.

Even Bill Gates’ Microsoft jumped into the cannabis business on the software side, partnering with Kind Financial. The software will give governments and business owners a way to monitor the distribution of cannabis “from seed to sale” and ensure compliance.

In addition to lawn and garden care, Scotts Miracle Gro also does business in hydroponics, which is the practice growing plants without soil.

“Pretty quickly we realized that cannabis and hydroponics were a big opportunity,” said Chris Hagedorn, general manager of Hawthorne Gardening Company and the son of Scotts Chief Executive Officer Jim Hagedorn, as quoted by Adage.com. “It has become more acceptable to our investor base, to our board, to our management team and the motivation is obvious: it’s a high-growth category.”

Even Cree Inc.’s (CREE) LED lights are used for indoor lighting options for growers.

Hewlett-Packard powers the Flowhub cannabis compliance solutions, too.  Flowhub’s product not only provides business management and transactional processing tools for retail stores but also workflow focused on compliance, regulatory and reporting rules of marijuana dispensaries.

It’s the perfect storm of catalysts.

We’re even seeing international demand pick up momentum.

Colombia is on its way to become one of the largest global export leaders in medical marijuana since legislation in the region passed in.  At current pace, Colombia could supply 44% of the global demand for medical cannabis, as noted by Andres Lopez, the director of Colombia’s National Drug Fund, as quoted by Medical Marijuana Inc.

“Latin America, the Caribbean and Europe present incredible opportunities for those with proven track records when you consider the combined number of licenses granted to date for a population count of well over 1.5 billion outside of Canada and the US is fewer than the number granted to the Canadian market with 36 million people” said Aphria President, Vic Neufeld.

Even the US FDA is on board.

The U.S. FDA – for the first time ever – approved marijuana-derived drug.

In fact, they approved GW Pharmaceuticals’ Epidiolex for the treatment of seizures associated with two very rare and severe forms of epilepsy – Lennonx-Gastaut and Dravet Syndrome for patients two years of age and older.

Consider what this means.

If the FDA just approved a medical marijuana treatment for kids two and up, it’s stands to reason the FDA could start approving even more similar medications.

Marijuana is in the perfect storm of catalysts.

U.S. approval ratings are skyrocketing.  Canada just approved, and can’t keep up with demand.  Corporate America is seeing opportunity.

Europe and Latin America are seeing soaring opportunity, as well.

The only question now – how can we profit from the boom?

Pot Stock No. 1 — MedMen Enterprises (MMNFF)

The $5.45 stock is just beginning to build momentum and could double, if not triple.

The company operates 19 licensed facilities in California, New York and Nevada, and recently obtained a license to do business in Florida.  Better still, it noted it landed “prime retail locations” in Florida, with long-term leases in Miami Beach, Ft. Lauderdale, West Palm Beach, Key West and St. Petersburg.

“Florida is the third most populous state in the U.S. with a rapidly growing medical cannabis market and large potential adult use market,” MedMen said in a statement. “The state has high tourist activity and is home to the largest elderly community in the nation.”

The company even just closed an acquisition of a dispensary and a cultivation license from Treadwell Nursery, a Florida company that has been approved to grow marijuana. The license will allow MedMen to open as many as 35 medical cannabis dispensaries in Florida and also grow the plant there.

Then, the company then entered the Arizona medical cannabis market with an acquisition of Monarch.  By the way, Arizona is one the largest medical marijuana markets in the country with over 172,000 current patients.

It also extended its operations in Chicago.  Illinois is one of the fastest growing medical marijuana markets in the U.S.  In fact, since the year began, qualifying patients jumped 41%.

The best part – it’s still expanding.  And its stock is still dirt cheap, but not for long.

It also has exposure to Canada.

The company teamed up with Cronos Group to form joint venture, MedMen Canada with plans to expand throughout the country.

Fundamentally, things look good, as well.

Across the Company’s operations in California, Nevada and New York, systemwide retail revenue was US$19.2 million (CA$25.2 million).

That retail revenue for the quarter is primarily attributable to MedMen’s stores in Southern California’s recreational market. Excluding its Abbot Kinney store, which opened in early June 2018, the Company’s other 7 retail locations reported a combined US$17.4 million in revenue (CA$22.8 million), with an average retail markup over wholesale of 90%.

These seven locations saw 94,000 new customers and nearly 130,000 returning customers, with an average spend per transaction of US$77.76 (CA$102.09), operating at an annualized per square foot revenue of US$6,541 (CA$8,470).

Pot Stock No. 2 — OrganiGram Holdings (OGRMF)

OGRMF produces and sells medical marijuana in Canada. As Canada moves to legalize marijuana use on the federal level, the company is ramping up production to capitalize on new market opportunities as an existing licensed producer. An active expansion includes a 15,000 sq. ft. extract processing facility that could prove quite useful, as the market begins to explode.

Another reason to like OGRMF is its agreement with Nova Scotia Liquor Corporation.

“We are pleased to announce our supply agreement with NSLC,” says Greg Engel, Organigram’s CEO. “Our home markets have always been a key priority for Organigram and this announcement solidifies our position as the market leader here in the Maritimes. With supply arrangements in place in six provinces, we take great pride in our place as a national leader working towards a sustainable and successful adult-use recreational cannabis market.”

Fundamentally, there’s plenty of opportunity.

It posted record net sales for both the three-months and nine-months ended May 31, 2018 of $3.7 million and $10.1 million respectively vs. $1.9 million and $3.6 million respectively for 2017.  A net income of $2.8 million was an increase of 162% compared to $1.1 million in Q2-2018 and a loss of $2.3 million in Q3-2017.

Pot Stock No. 3 – New Age Beverage (NBEV)

New Age Beverages Corporation, a healthy functional beverage company, engages in the development, marketing, sales, and distribution of beverages. The company offers ready to drink (RTD) tea, RTD coffee, kombucha, energy drinks, relaxation drinks, coconut waters, functional waters, and rehydration beverages, as well as functional medical beverages.

It provides its products under the Búcha Live Kombucha, XingTea, XingEnergy, Marley One Drop, Marley Mellow Mood, Marley Mate, Marley Cold Brew, Coco-Libre, PediaAde, and Aspen Pure PH and Aspen Pure Probiotic Water brands, as well as the Bio-Shield and enhanced brands. The company sells its products across 50 states in the United States; and approximately 10 countries internationally through direct and store door distribution systems.

One of the biggest reasons to like NBEV long-term is corporate America’s interest in – and the potential for widespread adoption of cannabidiol-infused drinks.

Coca Cola expressed interest in cannabis-based beverages for example.

Constellation Brands is making a play for pot-laced beverages as after a $4 billion investment in Canopy Growth Corporation.  Now, New Age is getting involved, and it may fuel buyout speculation, as it debuts its new portfolio of cannabidiol-infused beverages.

Pot Stock No. 4 – The Green Organic Dutchman Holdings (TGODF)

TGODF operates as a cannabinoid-based research and development company in Canada. It produces organic cannabis products, including organic dried cannabis, cannabis oils and edibles, fresh cannabis, and seeds for medical applications.

The best part — TGODF is in the middle of a major expansion in two facilities where it will grow organic cannabis. Both sites are based in Canada and are be near major metropolitan areas. The company’s goal is to produce up to 116,000 kilograms (kg) of high-quality organic marijuana.

Better yet, industry monster, Aurora Cannabis is a partner.

“Aurora has been an incredible partner to date and both parties plan to continue the partnership. They invested $78.1 million into our Company and added tremendous value across multiple areas of collaboration, including the design and construction of our Canadian facilities,” says TDODF. “Our recent $75 million bought deal financing ensures TGOD has the capital necessary to continue our international expansion at a rapid pace, extending sales and distribution to more channels throughout Europe and Latin America. While the Milestone Option has expired, many possibilities exist in the future for our two very complementary companies.”

In addition, in early 2018, the company unveiled a partnership with Epican Medicinals in Jamaica to construct a 125,000-square-foot facility that will be able to yield 14,000 kilograms a year for the Jamaican and international markets.

It also construction of a 287,245-square-foot facility that will be used for its beverage division. When operational, it could contribute up to 40,000 kilograms of cannabis-equivalent production. Then it formed a joint venture with Queen Genetics/Knud Jepsen A/S in Denmark to build a 200,000-square-foot facility capable of 25,000 kilograms of production a year.

As it continues to expand internationally, and increase its production, we believe the stock could double, if not triple over the next year or two.

Bonus Stock Pick No. 5 — Aphria Inc. (APHQF)

With recent partnerships, supply agreements, and acquisitions, APHQF could become Canada’s third biggest supplier with annual production of 255,000 kilograms.

Given the expected demand in Canada, the stock could be one of the most explosive.

One of its acquisitions was Nuuvera for $670 million, which will help to expand APHQF’s international presence to 11 countries.

Even more impressive, the company just entered into an agreement with about 1,300 Shopper Drug Marts in Canada to be their licensed medical cannabis supplier.

If the company can continue to progress, the stock could double, if not triple.

To do so, it needs to capture a larger share of the Canadian recreational market.

The company has made big strides to do so.  In fact, it’s now moving to increase production capacity.  In its fiscal fourth quarter 2018 report, it even noted that expansion efforts to expand from 35,000 kg. to 255,000 kg. next year are on schedule.

It’s also progressing by signing supply agreements for recreational marijuana in seven provinces and territories in Canada.

It also partnered with a leading liquor distributor, to distribute its retail cannabis products.

Even better, it’s branching into cannabis-infused beverages, too.  The company recently announced a joint venture with Perennial to develop cannabis-infused products and brands for the Canadian market. Granted, cannabis-infused beverages and edibles will not be legalized in 2018, but regulations for the products could be finalized sometime in 2019.

It’s also likely to list on the NYSE very soon, which could boost volume and valuation.

The company follows Cronos Group (CRON) and Canopy Growth (CGC) in dual listing on both the Toronto Stock Exchange and a U.S. exchange.

According to Bloomberg, there are valuation benefits:

In a piece titled “Don’t underestimate the power of a U.S. cannabis listing,” Grizzle analyst Scott Willis said U.S.-listed cannabis stocks trade at 37 times enterprise value to 2020 EBITDA versus 12 times for the next eight largest Canadian names.  “This is a massive multiple difference that shows access to U.S. investors is worth all of the cost and effort it takes to obtain a listing,” Willis wrote.

 

Disclaimer

This manual is for informational and entertainment purposes only. The author is not an investment adviser, financial adviser, or broker, and the material contained herein is not intended as investment advice. If you wish to obtain personalized investment advice, you should consult with a Certified Financial Planner (CFP). All statements made in this manual are based on the author’s own opinion. Neither the author or the publisher warrants or assume any responsibility for the accuracy of the statements or information contained in this manual, and specifically disclaims the accuracy of any data, including stock prices and stock performance histories. No mention of a particular security or instrument herein constitutes a recommendation to buy or sell that or any security or instrument, nor does it mean that any particular security, instrument, portfolio of securities, transaction or investment strategy is suitable for any specific individual. Neither the author or the publisher, can assess, verify, or guarantee the accuracy, adequacy, or completeness of any information, the suitability or profitability of any particular investment or methodology, or the potential value of any investment or informational source. READERS BEAR THE SOLE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS. NEITHER THE AUTHOR OR THE PUBLISHER IS RESPONSIBLE FOR ANY LOSSES DUE TO INVESTMENT DECISIONS MADE BASED ON INFORMATION PROVIDED HEREIN. At the time of writing, neither the author or the publisher has a position in any of the stocks mentioned in this manual. By proceeding with reading this course, you affirm that you have read and understand the above disclaimer.