The cannabis industry has just entered its most rapid phase of growth, and the companies that figure out this one thing will dominate the scene for years to come.

Cannabis just entered a new phase.

One through which this burgeoning market will speed towards $100 billion in sales in the U.S.

Along the way, cannabis investors can look forward to a $1 trillion in market value across all cannabis companies – at least for those with the brands and products to dominate this market. This means the biggest and quickest fortunes for cannabis stock investors are just ahead.

And those that don’t go “all in” on cannabis soon could well miss out on this once-in-a-lifetime chance to claim their stake before rapidly rising stock prices take that opportunity away.

We’ve entered a new growth phase that will spark a “Merger Mania.”

Smaller companies will join forces to gain ground on the market leaders, and big companies will acquire smaller ones in a furious attempt to stay ahead.

Companies not involved in the cannabis market will rush in to stake a claim in a market growing many times faster than their established industries.

And money from big institutional players will start pouring in as they realize they can no longer afford to sit on the sidelines and let legal uncertainty hold them back.

To emerge as winners from this phase, cannabis companies will strive for this one thing…

Cannabis Winners Will Scale

Cannabis companies must now do whatever they can to scale.

We actually talked about this very thing during the American Cannabis Summit.

Phase 1 was the “Opening,” with a ton of startups and small firms. We saw new players constantly entering the market. During this phase, nobody had a giant market share, so there were no clear winners yet.

Now we’re entering Phase 2, and we will start to see massive consolidation. Smaller companies start merging, and bigger companies acquire smaller ones. Cannabis stocks will rally the most in Phase 2.

Phase 3 will witness the mega-deals. The dominant players at that point will merge with one another and deals could eclipse $100 billion in value.

The prohibition of cannabis is quickly becoming a thing of the past. But within this million-dollar opportunity also lies nearly a million different hitters in the game – making it nearly impossible to identify the winners from the wannabes. That’s why we’ve done the heavy lifting for you – and narrowed it down to four pot stocks with MASSIVE upward potential… Just click here to find them out for yourself.

In Phase 4, the action slows down. Just a few big players dominate the industry, and some even graduate to blue-chip status.

And when Canopy Growth Corp. (NYSE: CGC) announced that it would acquire Acreage Holdings (CSE: ACRG, OTC: ACRGF) last week, I knew that the cannabis industry had entered a new phase of rapidly accelerated growth, the “Scale Phase.”

And to achieve scale, companies have two choices – build or buy.

To Build or to Buy

To build its way to scale, each cannabis company would build its own way to large, multi-state operations and national brands. This would mean going around applying for and winning cannabis licenses in each state, leasing storefronts for retail space, and building greenhouses to firm up supply.

But for most companies, building their way to scale would take too much time. The cannabis market moves fast, and anyone hoping to emerge from Phase 2 a winner cannot afford to wait.

So they will buy. They will acquire or merge with those companies that already have the licenses, distribution, and supply that make them the biggest cannabis firms the fastest. And the biggest gains will fall to those investors that own stocks in those companies most likely to acquire and those most likely to get acquired.

For investors, either way, they will own stock in a company with scale, just like members of Cannabis Investor’s Report and The Cannabis IPO Insider found out last week.

When Cresco Labs Inc. (CSE: CL, OTC: CRLBF) paid $823 million in stock to acquire Origin House (CSE: OH, OTC: ORHOF) it went for scale. These two stocks have been in our portfolios for months, and they’ve already made many of our members a ton of money. Now that they’re merging, those positions are poised to soar even higher as we enter the scale phase.

Harvest Health and Recreation (CSE: HARV, OTC: HRVSF) also strove to scale when they bought Verano Holdings for $850 million in stock.

But the scale achieved through mergers and acquisitions isn’t just for the sake of size itself. The companies with the biggest national – or even global – footprints will borrow more cheaply. Or, like Cresco, Harvest Health, and Canopy have all demonstrated, they will use their stock as currency to fuel growth as quickly as possible through the scale phase.

That’s because with scale comes cheaper access to capital. Banks will offer cheaper financing to large cannabis companies who will use that cheaper financing to leverage up their balance sheets with borrowing.

And the cheaper capital gets, and the more leverage employed, the higher stock values soar.

Cheaper Funding, Soaring Stocks

And there are other forces at work that will drive capital costs down even further.

As more cannabis-focused REITs are launched, cannabis companies will free up expensive capital tied-up in real estate, boosting returns – and stock prices.

Legislation like the SAFE Banking Act and States Act will open capital markets, bring in larger investors, and lower the cost of funding as they desperately bid against each other to own cannabis stocks.

So there’s much to look forward to in Phase 2, and I’ll write all about the Merger Mania of Phase 2 already underway this week.

I’ll tell you this week all about the one company that will absolutely dominate Phase 2. This company reigns as the “King of Scale,” and every other cannabis company finds themselves hastily playing catch-up.

I’ll also be giving you a primer on companies issuing stock – how that can be done well and how some do it poorly. Stock equates to a company’s currency, and those that issue it for something useful get rewarded with a rising stock price.

Like me, I’m sure you found the “Opening” phase of cannabis growth exciting, but it will pale in comparison to what the “Scale” phase has in store.

And we want you to own stocks in those cannabis companies with the best chance to scale. These companies will lead the pack, and their stocks stand to return the most gains when the industry moves into the “Focus” phase.

So, look for a special report in your email this week about the “King of Scale.”

Greg Miller
Executive Director, National Institute for Cannabis Investors

P.S. We’re still at the beginning of the legal cannabis industry, and it’s projected to grow a stunning 3,667% over the next five years. But because this industry is still young, some of its big hitters remain under-the-radar. So my team spent months researching, analyzing, and sorting through what we believe are the winners and the losers… and we’ve narrowed down the pool to these top stock picks. Some of these players are trading for $1. And right now, this tiny $1 pot stock could be your ticket in. It’s the same company that’s projected to generate BILLIONS of dollars in new wealth over the next few years. But things are moving fast, so today could be your last opportunity to see how to lock in this ground-floor opportunity… Before things really take off. One wrong move could leave you empty handed. And if you hesitate today, you could be throwing away your chance to become one of the industry’s newly minted millionaires. Here are the little-known pot stocks we’re targeting right now


Comments

20 responses to “One Thing That Will Make Your Cannabis Stocks Soar”

  1. I always look forward to your articles. They are generous with information so needed by those of us who are newbies to stock trading and especially the cannabis industry.
    Blessings!!!

  2. I like vertically integrated companies, companies that can grow, manufacture, and sell their product. Harvest Health and Recreation (HRVSF) is one such company.

  3. E*Trade had a report saying that Marijuana investers are as oblivious to the litigation risks as the smokers are to the health risks from smoking.
    I am just interested in your response since yesterday they were up and today since that came out they are dropping fast.

  4. It is just fascinating to read these tremendous articles, Greg. What I love is that you break it down to where is just makes so much (common) sense even to someone of my limited experience. I find myself just frothing at the mouth – ready to pounce. It has also made me acutely aware of the value of the research available to us & how important it is to take advantage of all the information we have.
    Thanks…

  5. When will all the stocks will start climbing up in the growth and capitalization that you are talking about help I want in

  6. WHY ARE WE NOT GETTING SOME SORT OF STOP LOSS? SHOULD I PUT A 30% TRAILING STOP AS A STOP LOSS ENTRY? THANKS.

  7. I am just starting and you are helping me to understand what I need to look for. I am retired and trying to bring in extra income that I can have a better life. Thank you for your help.

  8. My age is 80 years, female. Yes, people of my age enjoy Cannabis.
    It is NOT addictive at all. Anyone saying it is addictive did not experience Cannabis. I used it for years and then not at all for many years later.
    It was not there and I did not reach out to find it. That gives me the
    understanding that POT is not addictive!

  9. I am meeting with theCEO of Hexo on May 28th. Are there any questions you would like answers to?
    Rick Schiff

  10. Do we know when Vertical companies coming out to trade? I like that company and am looking forward to owning its stocks, please keep an eye on it for me.

  11. I have stocks in cresco and harvest health and recreation, do I still have to by stocks in origin house and verano holdings or am I alright with the two that I already have? Thank you for your help.

  12. Rick Schiff, I’m so glad I found you as CEO of HEXO. I’m not fully understand why someone mentioned HEXO was one of good options stocks that s good for the rest of a life. I dont see very nice potential profits since I invested small amounts for HEXO two weeks passed. Do you have a suggestion ?

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