The Berkshire Hathaway of Marijuana

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Marijuana stocks have been killing it.

I’ve recommended multiple cannabis-related stocks in my Investment Opportunities service. Every one of them is up in the first seven weeks of the year with an average gain of 56.5%.

One has surged over 155% so far in 2019. Two others are up over 70%.

It’s all because of the historic boom taking place thanks to the spreading legalization of marijuana… which in turn is creating a historic boom in legal marijuana stocks.

Wisconsin just became the latest state to start talking about legalizing medical marijuana. Believe it or not, medical marijuana is now legal in 33 of the 50 states – that’s two-thirds of the country.

Weed is now the fastest-growing industry in America. And the best news is that we’re still in the early stages of this sweeping trend.

It’s not too late to make a lot of money if you’re not already.

In this tidal wave of new growth, the future leaders of the industry – the massively successful private companies that are fueling this surging market – are taking their companies public on the stock market.

Last week, a company called Innovative Industrial Properties (IIPR) became the first marijuana stock EVER to be included in a major index – the S&P 600 Small Cap Index.

We were one of the first firms to get behind IIPR when it was a virtually unknown microcap stock in August 2018.

You better believe that other marijuana companies want to do the same thing… or more.

There is money to be made in newly public marijuana companies, and I created the Cannabis Cash Calendar to do exactly that. They are yet another way to earn big profits from the exploding marijuana industry… but you have to know what you’re doing.

5 Keys to Analyzing a Marijuana IPO

I have no interest in sugarcoating it: Although the early days of a booming industry are filled with enormous potential, they are also filled with danger.

When a new industry booms – when billions and billions and billions of dollars are up for grabs – all kinds of people will rush into the sector and try to get their share.

You can be sure some of these folks will be smart, hardworking, and great people to invest with. You can also be sure some of these folks aren’t the kind of people you’d want to invite over for dinner… or ever do business with.

You can be sure there will be great businesses you can buy shares in, and you can be sure there will be crappy business you can buy shares in.

That’s a fact of life in any industry, but this challenge is magnified in a new industry with massive potential.

Although some great businesses like Amazon started in and emerged from the 1990s tech mania, many internet businesses turned out to be losers. Remember Pets.com?

This is why I developed an analytical model for evaluating legal marijuana IPOs.

I’ve shared the model with my Investment Opportunities readers, and while I can’t give you all of the details here, I can tell you a few things about it.

I want to see a company that is growing sales. I want to see enough cash to fund its growth plans. This helps us avoid the next Pets.com.

I want to see great management that can navigate a new and growing industry. A company could have a fantastic business plan, but if management is sub-par it won’t matter. Bad managers can wreck great businesses plans. Great managers can rescue bad business plans.

I also want to see newly public stocks trade a certain way before I invest. IPOs are different animals. Most of us never get a shot at buying a true IPO. Almost all of those shares go to company insiders and the brokerage firms helping the company go public. So since we’ll be investing in stocks that are already  public – albeit still very young –  there’s a distinct trading pattern I look for to determine the right time to get in with less downside risk but huge upside potential.

Our First IPO Picks

We’re off to a great start with marijuana IPOs.

My first Cannabis Cash Calendar recommendation is a play on the legalization of hemp, also part of the huge cannabis trend. The recently passed 2018 Farm Bill made hemp legal for the first time since the 1930s. The bill was just about to become law when we bought the stock, and we’re up over 70% in less than three months.

Our second pick is a unique marijuana play in that the company doesn’t actually touch the stuff. It’s a special kind of company that just completed a significant merger with the world’s largest cannabis technology company. Approval of the merger was delayed with the recent government shutdown, but I expect news soon and the stock should start moving.

I just released my third pick yesterday. It’s also unique. It is a Warren Buffet-like investment that offers several companies in one and is also one of the most undervalued stocks in the entire market. It went public a little over two months ago, and it is checking all of the boxes in my analytical model.

I like the company’s vertically integrated business model, which helps it generate margins higher than the rest of the cannabis industry. That in turn leads to quicker profitability than its peers. It also allows us to make money on private businesses that we would otherwise not be able to invest in.

Earnings are expected to soar and the stock is a bargain. I see a potential 10-bagger in the next 24 months.

P.S. I already have the date circled for my next Cannabis Cash Calendar recommendation.

You can get exclusive access to it as soon as it’s released to my Investment Opportunities readers. Click here to learn more about this opportunity and how to get on the list to be notified. You can also get full details on my just-released IPO pick, the Berkshire Hathaway of marijuana.

Regular MoneyWire readers know that I believe the legalization of marijuana is one of the great investing opportunities of the next decade.

Even if you don’t know a thing about the marijuana markets… even if you’ve never bought a stock before. If you have just a small stake, you could make a lot of money over the next 12 months. Click here to learn more about this incredible story.

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