There’s three things you need to watch in the cannabis industry in the next six months…

After a rough finish to 2018, cannabis stock prices have climbed nicely so far in 2019. There were a couple of rough weeks in there – including the last few days – but the overall trend has been steadily higher.

We’ve entered into a new phase of cannabis investing, and by knowing what to keep of track of now, you have the chance to find the best long-term profit opportunities. Things were already happening fast in this industry, and they’re about to get faster still.

In the next six months, there are three things I want you to watch very closely.

I talk a lot about some broad themes because I want to show you exactly what I’m looking at and help you become a better cannabis investor. I love setting up trade alerts for you to follow, but I also like hearing about those of you who are doing your own due diligence and using investing tools to find additional opportunities.

If you understand where something is heading, you’ll know the needs of a market.

For example, cannabis legalization brings about the problem of impaired driving. Knowing that there needs to be a full-scale solution, you can start researching companies trying to provide a solution for this problem.

In fact, I just wrote a report about cannabis breathalyzers.

So today, I’m going to share with you the three things that are going to unlock a new wave of profit opportunities…

Mergers

The merger mania we’ve seen lately is kicking off what you’ve seen me refer to as “Phase 2.” In this phase, we see massive consolidation. Smaller companies start merging, and bigger companies will acquire smaller ones.

By the end of 2019, we’re going to see a lot of consolidation.

The opening phase of cannabis investing was exciting, but it will pale in comparison to what Phase 2 has in store. Companies can buy their way into new markets and turn into revenue-generating powerhouses.

That will bring more retail investors in, helping cannabis stock prices climb.

Get in on the ground floor of something truly historic – we’ve got your cannabis investing how-to right here.

And I want to remind you again about Canopy Growth Corp. (NYSE: CGC), because they kicked this phase off with the purchase of Acreage Holdings (CSE: ACRG, OTC: ACRGF). The deal will only close when the U.S. legalizes cannabis, and to me that’s a sign legalization is imminent.

When I met with my staff, I told them that a lot of people said they knew Microsoft was going to be the next big thing in the 1990s.

But how many of those people actually bought stock?

With Canopy, we have the exact same thing.

Legalization

Speaking of legalization, we are going to see a lot of efforts to reverse cannabis prohibition.

That could mean baby steps for some states, but even baby steps can mean a giant leap forward.

Texas lawmakers recently approved a decriminalization bill, Illinois could legalize recreational marijuana soon, and New York and New Jersey are still slugging along towards recreational approval.

The SAFE Banking Act and the STATES Act both have a strong possibility of passage this year, and there’s going to be a lot of cannabis legalization news to keep track of as we head towards 2020.

Earnings

With the most recent earnings we’ve seen for full year results for 2018, keep in mind that cannabis was only just legalized in Canada in October 2018.

That means 2018 didn’t provide a full picture of what was really going on.

Also, remember that that when legalization first rolls out, there are usually some hiccups. Dispensaries are still waiting on licenses, and supply is normally not able to meet demand right out of the gate.

On top of that, some companies were still waiting for acquisitions to close when they last reported earnings. That means they couldn’t count the revenue from those acquisitions in their reports.

Again, that limits the true picture of what is going on with cannabis earnings.

Now we have two full quarters of full legalization in Canada, and we can also see how the 2018 Farm Bill has impacted CBD sales, as it was just passed in December 2018.

This time of year is a particularly fast-paced period for earnings announcements. Because companies have extra time to prepare their year-end financial reports, Q4 reports and the Q1 reports just about run into each other.

And now that the last few companies are reporting those Q4 earnings, we’ll see Q1 earnings start to stream in.

I’m going to be updating you on all three of these things when the biggest news breaks, as they are the storylines every successful cannabis investor will be watching. All of this put together will make cannabis investing more profitable than ever before, and I’m glad you’re here with us on this journey.

Greg Miller
Executive Director, National Institute for Cannabis Investors

P.S. Right here, right now, you have a chance to take your cannabis investing to the next level, a move that could be the only way to grow your money fast in the cannabis market. Your see, within our one-of-a-kind cannabis stock database, we’ve compiled all the information you need on nearly every single cannabis stock in existence ­- publicly traded and startups alike. To find out how you can access this millionaire-making “vault,” all you have to do is go here now.


Comments

24 responses to “What to Watch in the Cannabis Industry for the Next 6 Months”

  1. Hello, I’m a newly investor with no real money to invest (I understand thats a horrible combination). I’ve been researching & investing for a few months now. I’m just a typical, check to check living middle class American that realizes that cannabis is going to be the next .com boom in the markets and I don’t want to miss the boat.

    So I’ve been doing my own research and self educating myself (on my spare time), So periodically I will squeeze a couple hundred bucks when I run across a cannabis related penny stock that shows potential.

    My portfolio has over a dozen stocks, non of witch are more than .08 cents a share. I can’t afford to invest in companies like CGC or TLRY, because I could only grab like 2 – 5 shares at a time. So I have to take my chances with grabbing 10’s of thousands of shares of companies I’ve researched that show promise.

    With that being said, does your firm have any advice or recommendations that would help me in my quest with analysing and picking Ultra penny stocks (stocks less than .1 cents a share) because there are thousands out there. But I understand that only a very small fraction have the ability to be the next Amazon.

    • I am in the same boat. Anyone that can offer help, please.
      Finus keep me posted & I’ll do the same

    • I believe most of these super small companies will not make it. It may be that just a few shares of the bigger players (not necessarily the largest ones– but rather the ones that are ranked 5, or maybe 4 in the data base, will yield a better return on your investments. For me, the number of shares is much less important that the future of the “survivors” that will produce the biggest gains when the industry begins to mature. I think that the chances of catching a lightning with even one of these micro, micro companies is too close to playing the slots in Vegas… and some of the high rated companys are fairly cheap, in the 50 cent to $2.00 range. Just my thoughts…

      • Hi Grey, I agree with you wholeheartedly, in all things it is better to get in
        on a winner even if it’s only a few shares. They have something showing
        as a profit against a maybe.
        Mildred

  2. Greg, please look at Med Pharma Labs. MLCF
    A global leader in research driven Cannabis extraction. YTD stock price from $1.17 to high of $4.87. Outstanding performer for me and would like see in NICI data base so other members know. Best Regards, Lonnie Kessler

  3. Thank you for all you do! What are your thoughts about Organic Flower Investment Group? Reportedly it is The Cannabis company in which Warren Buffet is investing from Potalyst article.

  4. Greg, do you know a timeline for the Cresco and Origin House M/A? Should we continue to build our portfolio in both until then?

    • Hello Nancy. I’m a fellow NICI member invested in Origin House, among others in the model portfolio. From what I’ve read, the merger between Cresco and Origin is scheduled to occur in June 2019. I’d build, or at least hold, your positions in both until then.

  5. it’s great to read your column in plain understandable English. At the same time giving us encouragement in down markets. Thanks for keeping us informed. Very greatful !

  6. Greg,
    I just want you to know that I really enjoy your ongoing communication emails about the Cannabis Industry. They are always well written, easy to understand and you have a talent of explaining things with great clarity. On both the industry and the stock market. There are times that I get videos that I would love to watch but do not have time so I tend to skip through most of the content. In the future developing videos around 15 minutes would help me considerably and keep me focused on the key issues. Although I do understand the reason for the long drawn out media content.
    I started investing in this industry in small amounts in October of 2018 and joined your organization the beginning of 2019. I am invested in all the companies that you recommend along with a few of my own. I have net earnings of approximately $22,000 on a $43,000 investment in the market over 5 months. No complaints here… Continue to keep up the great job you guys are doing especially with the communications. Best-Jim Pantall

  7. I’m on dissabilty i would like to invest some each month what do you recommend me to do? And with whom???

  8. This message is for Sharon Kessler concerning Med Pharma Labs.
    I am a cannabis investor…always interested in well producing companies
    I found a company that does cannabis extractions called Medipharm Labs Corp….ticker symbol MEDIF. It trades in the same price ranges you said.
    Is that the same stock?

  9. What can you tell me about Aurora Cannabis Inc. (ACB) ? It does not seem to be going much of anywhere lately. Is it still a good company to invest in for growth ? Thank you for your help.

  10. Greg. Thank you for all your research
    What is your thoughts on Hemp Inc (HEMP)
    Also Rocky Mountain High Brands (RMHBD)

  11. We are all new at investing in this business, because the business is just
    starting for most everyone. One day at a time could do it for all us, stop, look and listen to the ones who have been in the field for awhile. Be kinder to yourself. Mandy

  12. I am new to this also , I have not been able to invest in any stocks as of yet but should be able to get started some time next month . I have been trying to figure out what broker to use and what stocks to purchase , and trying figure some of the language used such 1/2 stake & so on . I am in this for about $2,500. 00 thus far and still have not bought any stocks. There is so much content , it’s easy to get lost. Any tips or advise ?

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