Get Ready for Marijuana Profits “2.0” Next Week

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Today I’d like to tell you about a meeting I had recently here in Baltimore at our InvestorPlace office. I explained to our CEO, Brian Hunt, and the rest of our team how I’d developed a new income strategy – and that I thought the legal marijuana market was the perfect place to deploy it.

People just kind of looked around at each other for a minute… then asked me to elaborate. I think they were willing to give me the benefit of the doubt – but they were definitely surprised.

After all, marijuana companies are growing revenues like crazy… but most of them haven’t reached profitability yet. And without positive earnings, we’re just not going to see marijuana dividends.

Well, my strategy doesn’t rely on dividends for income (as you’ll see). It does require some volatility – a lot of speculators trading in and out of the stocks, pushing prices around. And, most importantly, we need an incredibly lucrative long-term market.

Marijuana meets both of those criteria in a huge way.

I alluded to this new strategy in yesterday’s MoneyWire. I’m not seeing anyone else doing it, and I’m excited at the potential here. So I’d like to take this chance to explain why.

Here are some of the facts and figures I provided to my InvestorPlace colleagues as to “Why marijuana?”

The biggest legal-weed giants will likely be billion-dollar companies within a couple of years:

  • One is Canopy Growth (CGC), which is expected to do $1.47 billion in annual revenues by 2022.
  • Aurora Cannabis (ACB) is the other. I can’t believe people are selling it off right now on just one quarterly miss. The company’s projected revenues are even slightly better at $1.49 billion by 2022!

Yet, unlike most other billion-dollar companies – in more mature markets – this industry hasn’t played out yet. By that I mean, many of these stocks are still waiting for the catalysts that will propel them to their full potential. Well, I already know what these catalysts will be… and so do you: Legalization.

Canada was the first major nation to fully legalize the marijuana flower at its federal level last year. The resulting action in Canadian marijuana stocks was our first glimpse at how powerful of an investment opportunity this is. In the few months between June 2018 (when Canada passed the legalization bill mid-month) and September, the ETFMG Alternative Harvest ETF (MJ) rocketed 49% higher.

But “Legalization 2.0” doesn’t go into effect until next month. At that point, companies can apply for a Health Canada license to sell cannabis edibles, vaping products, extracts, concentrates, and beverages. Sales won’t begin until at least December. So, millions of potential customers are still waiting to get their hands on these products. Canadian pot companies need edibles, vapes, etc. to maintain their huge market share. They also allow a profit margin as high as 92%! And, since they’re more subtle to use, this may well be how recreational cannabis goes mainstream.

Comparable products, like beer and wine, sell in the hundreds of billions of dollars worldwide. Just the eight largest beer companies did roughly $150 billion in global sales in 2018.

So if marijuana can do a quarter of those beer sales, that’s $37.5 billion annually – more than double where we are now. But even without other countries fully legalizing (which they will), BDS Analytics is projecting that cannabis will already be a $57 billion market worldwide by 2027.

That’s a lot more data than I had on hand in October 2014. But even with what we had then, I was confident enough to go on Fox Business and say, “This is a trend that isn’t ending anytime soon.”

What’s The Next Step to Cash In on Legal Marijuana?

The day I made that TV appearance, even Canopy Growth was a tiny, $66 million company by market cap. At its high this April, CGC had jumped 27,050% – to $17.9 billion in market cap.

Now, that moonshot higher wasn’t without some serious volatility along the way (as the above chart shows). That’s what we’re seeing now, too. And while it’s enough to scare some investors away, I think that it’s the folks who aren’t as well versed in the industry trends I shared above.

But here’s what I’m finding: Volatility actually creates an even BETTER opportunity to cash in on cannabis right away while also positioning for big gains over time.

Long-term investors in Canopy Growth, for example, have to be feeling pretty good about their profits. But five years is a long time to wait. Well, with the income strategy I’ve developed, marijuana investors can actually get instant income in their accounts.

If You’re Feeling Skeptical…

I’ll admit that even some folks here at InvestorPlace weren’t so sure at first about this idea, which I’m calling Cannabis Cash Weekly. Especially my more junior colleagues, who don’t know me as well.

So I said, look. I’ll sit right next to one of you and show you how it works. We’ll pull up a real brokerage account, and we’ll execute a real trade. With just a small position, I can get you about $500 in income – right upfront. I’ll show you exactly what to do… even if you’ve never traded this way before.

And all of you reading this can watch this demonstration, too, on Tuesday, September 24 at 3 p.m. ET. I’m showing it for free, because I figure I’d better put my money where my mouth is… and get the word out broadly that Cannabis Cash Weekly does do exactly what I claim. Not only that, the method is surprisingly simple. Thus, it’s potentially VERY lucrative for any investor. Click here to sign up.

Matt McCall’s MoneyLine Podcast

Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt focuses on Chinese biotech – what he calls one of his favorite long-term investment opportunities of our lifetime. He talks to Brad Loncar of Loncar Investments, who created the index that the China BioPharma ETF (CHNA) tracks. And Brad shares his thoughts on why he is also so bullish on the sector. Finally, Matt discusses the genetic testing industry and why he believes it is the keystone to the future of healthcare.

You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.

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Article printed from InvestorPlace Media, https://investorplace.com/moneywire/2019/09/get-ready-for-marijuana-profits-2-0-next-week/.

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