The cannabidiol (CBD) craze is taking hold across the country — but, amazingly, CBD stocks are still flying under the radar. And that’s exactly why I’m writing to you about it this week.
The CBD industry is set to experience a huge boom over the next decade (as I’ll explain in a minute). We’re talking nearly 40X growth in four years. I am not aware of any other industry that has that kind of potential.
However, most investors will miss out on all of the capital gains… because they know practically nothing about CBD.
I don’t want that to be you.
I’ve been getting a lot of questions since I started covering the CBD craze. Well, to understand CBD, you need to understand what makes it unique. Nothing illustrates that better than the story of Charlotte Figi.
The Face of Change
Charlotte Figi was just three months old when she had her first grand mal seizure, which lasted 30 minutes. Those are the most severe kinds of seizures, and by the time she was three, Charlotte was wheelchair bound. After many tests, doctors finally diagnosed her with Dravet syndrome – a rare, catastrophic, lifelong form of epilepsy.
The number of seizures kept getting worse, and at one point Charlotte was taking up to seven medications in an attempt to control them. The attempt was futile, and by age five she was experiencing up to 300 grand mal seizures per week.
Can you imagine? That’s more than 40 seizures a day. Her condition got so bad that doctors had to put Charlotte into a medically-induced coma.
Through diligent research, Charlotte’s grandfather discovered that something called cannabis oil had helped another child with Dravet syndrome. Desperate for any kind of help, the family tried the oil — and after Charlotte’s first dose, she lived the next week of her life without a seizure! Ultimately, she went from 300 per week to just two to three per month.
Charlotte is no longer living under the shadow of her seizures. In fact, she is living a relatively normal life as a pre-teen. She is still working on her speech, but she can walk and ride a bike with the best of them.
There are many similar stories to Charlotte’s, where both children and adults have greatly benefitted from cannabis oil. The government and the medical industry have been slow to embrace the evidence — but families began to pick up and move to Colorado in 2014, after marijuana prohibition had been lifted there. This made cannabis treatments easier to obtain. (Colorado just celebrated its first $1 billion in marijuana revenue for the state.)
Stories like Charlotte’s have become one of the reasons the legalization of medical marijuana is sweeping the globe. The tide is shifting and a tidal wave is coming, which is why I’m so excited about the huge potential in CBD.
It’s important to know that a cannabis plant has more than 400 chemical compounds, and CBD — the active ingredient in Charlotte’s treatment — is one of them. So is tetrahydrocannabinol (THC). But while THC has psychoactive traits, which get you “high,” CBD does not.
And for us as investors, there’s another key distinction to understand here:
Hemp versus Marijuana
CBD can be found in both industrial hemp and marijuana plants, which are two varieties of Cannabis sativa. Think of them like cousins: closely related, but with key differences. The biggest is that marijuana plants can contain up to 30% THC, while hemp has less than 0.3% THC — but more CBD. That combination is why you can use hemp CBD and NOT get the stoned feeling.
As you can see in the picture below, the plants also look different. The left side is the hemp plant, which grows in much taller stalks, and the right side is marijuana, which has more leaves and buds.
CBD has always been an important part of the marijuana industry — but the chemical makeup is virtually identical when you get it from hemp. And hemp CBD is much more readily available, thanks to a breakthrough action by Congress.
The 2018 Farm Bill Opened the Floodgates
Prior to December 2018, the U.S. Drug Enforcement Administration (DEA) listed hemp as a Schedule 1 drug along with marijuana, heroin, and ecstasy. Schedule 1 drugs are considered to have a high risk of potential abuse and no medical use.
But on December 11, 2018, the Senate passed the 2018 Farm Bill by a vote of 83-17. The House of Representatives passed it by a vote of 389-47, and President Trump signed it into law on December 20.
Clearly, the Schedule 1 classification was extremely outdated.
The Farm Bill legalized hemp for the first time in nearly a century, opening up what could be a huge industry in a relatively short amount of time. According to the Brightfield Group, the hemp-derived CBD market stood at $591 million in 2018, when the product was just beginning to go mainstream. By 2022, Brightfield expects it to be a $22 billion market.
This is the nearly 40X growth I mentioned earlier… a rare opportunity.
The Farm Bill is great for lots of industries, where the applications of hemp are just common sense. But it is explosive for the CBD industry.
Now you can get CBD at big chained retailers — opening up the market to all kinds of different consumer groups:
- CVS Health (CVS) will sell topical CBD from brands like Medterra and Curaleaf (CURLF) for pain relief. Walgreens (WGA) is rolling out topical CBD, too.
- Kroger (KR) is the latest to begin selling hemp CBD. The grocery chain will “offer our customers a highly-curated selection of topical products like lotions, balms, oils, and creams.”
- GNC (GNC) now carries Physicians Grade and Myaderm-brand CBD creams and roll-ons for athletes, plus lotions.
- The CBD skincare market is heating up, too. Ulta Beauty (ULTA) is offering Cannuka CBD products, and Sephora now has a whole section of various CBD products.
- Urban Outfitters (URBN) has added a ton of CBD brands, starting with the “CBD For Life” line from iAnthus Holdings (ITHUF).
Be an Early Investor in CBD
I mentioned a lot of CBD companies just now. But there are a few others I’ve got my eye on.
I’ve put together a new research package with The #1 CBD Stock in the World and Three More CBD Stocks to Fatten Your Wallet. Thanks to the Farm Bill — and demand for CBD that’s just snowballing nationwide — these companies are set to multiply their revenues over time. You’ll see their names, ticker symbols, and buy-under prices in my full report.
But if you’re like me, you want to see what all the fuss is about — by getting to know the product yourself. So, I’m making this a true CBD Early Investor’s Kit by also including an actual, 15-day supply of high-grade CBD from CannaComplete. You won’t have to rely on all the rumors about CBD from people who hate it (or the ones who love it). You can see the real deal for yourself.
P.S. Because of the free sample of CBD, I’ve got a limited supply of CBD Early Investor’s Kits. I’ve also got to warn you that, while my CBD stocks are still small — they won’t stay small for long. Not with CBD products popping up at corner shops, drugstores, and shopping malls nationwide.
So we’ll be taking a closer look at the opportunity in CBD this week. (Hint: it’s not just a niche market, and it’s all over the world.) Stay tuned to MoneyWire. And if you want more information now, please click here.
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