One of the most traditionally conservative countries in Europe is legalizing marijuana – this shocking admission by their government is a key reason why.
When we think about the opportunity to profit from the end of cannabis prohibition, it’s easy for our focus to get fixed on our own backyard.
Colorado was the first state to legalize marijuana for recreational use in late 2012, and when California went fully legal in 2018, it gave 40 million people in the world’s fifth-largest economy unrestricted access to marijuana.
At this point, only 10 states remain where marijuana use isn’t at least decriminalized.
And when the federal government steps in to legalize marijuana at the national level, we’ll be looking at a market that will balloon to $100 billion, virtually overnight.
It’s no wonder so much attention is focused on the U.S.
But the opportunity in cannabis is not limited to our borders. The United Nations has taken up the mantle, and I expect CBD to be completely descheduled and THC-containing products to be rescheduled by the end of the year.
Forward-looking investors know the cannabis boom is a global phenomenon.
And it’s driven by three powerful forces that will put more money in your pocket…
Healing and Taxes Move Marijuana Markets Forward
One reason for this driving change is the discovery of marijuana’s powerful medical benefits.
The acknowledgement that cannabis is functional medicine sparked this whole process back in 1996 when California first legalized medical marijuana.
And whether it’s THC or CBD (or the more than 100 other cannabinoids present in hemp and marijuana), the evidence that these compounds provide effective treatment for all sorts of medical conditions piles higher every day.
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Another reason driving this global phenomenon is the realization that legal marijuana sales mean more taxes. Politicians are salivating at the taxes they can haul into government coffers. And while I hardly think that’s a reason in and of itself to legalize marijuana, it motivates them to do the right thing.
The third powerful reason driving the end of international cannabis prohibition is a stunning admonishment that the war on marijuana has been ineffective, and it’s spurring another major economy to set things right.
Correcting the Drug Policies in Europe
A French government-commissioned task force just called marijuana prohibition an “abject failure.” And politicians are using its recommendations as political cover to back legalization.
France has historically been very conservative and heavy-handed with respect to drug enforcement, so talking about legalization to “take back control” of the black market is a major step.
It’s hard to ignore how ineffective outlawing marijuana has been, and the French government sees state-controlled cannabis stores as the best way to keep the drug out of the hands of kids.
They also see the $3.2 billion in revenues that can flood government coffers. The power to tax is an irresistible lure.
And it’s also clear that cannabis can boost the economy. The report by the commission claims up to 57,000 jobs could be created from a result of making pot legal.
It’s still early, and legalizing recreational use in France has a steep hill to climb based on public opinion. But there is widespread support for allowing cannabis for therapeutic use among its citizens.
Switzerland is also relaxing its restrictions on cannabis.
Though a long way from legalizing recreational use, the proposal on the books allows for prescriptions for people suffering from serious conditions such as cancer and multiple sclerosis.
Switzerland is also working to allow some cities to experiment with recreational use. This is possible because most of the political power in Switzerland is maintained in each canton, rather than at the federal level. That makes it easier to conduct these types of localized experiments.
Italy, Germany, and the U.K. have all already legalized medical-use cannabis.
Ireland also recently made reforms to allow more patients to access medicinal cannabis, and Portugal isn’t far behind.
And with all of this momentum, there are a growing number of ways to play – and profit from – the boom in the international cannabis market.
Plenty of Paths to Play International Cannabis
At the head of the pack are the large Canadian LPs.
Though it’s making deals every day, we know that Canopy Growth Corp. (NYSE: CGC) has a presence in seven European countries right now, and Aurora Cannabis Inc. (NYSE: ACB) has planted even more flags.
The clarity gained when Canada went fully legal last October gave it a legislative lead in the race to establishing global scale. These cannabis titans are well positioned to gain from an emerging global market for marijuana that could create well over $1 trillion in value over the next handful of years.
But there are earlier stage companies that also see the global opportunity.
With just a small management team, this tiny firm is on an acquisition spree, quietly laying the groundwork for a truly global cannabis enterprise.
The stock is under the radar, but if they manage to own even just a fraction of the international market, you’ll want this company in your portfolio before it hits the radar of large investors, or before it gets acquired.
Now, this is not a recommendation to buy stock in International Cannabis Corp.
But we want to make sure you know about the companies that could become the biggest global players.
Cannabis Investor’s Report Lifetime Members can read our analysis on the company here.
And International Cannabis Corp. is just one example of over 160 publicly traded cannabis companies looking to stake a claim in the global cannabis boom.
We have written reports on all of those companies, which Cannabis Investor’s Report Lifetime Members are free to explore in our NICILytics database. Also known as the “Vault,” this database provides reports and ratings on the rapidly growing list of cannabis companies.
The best of those will create the lion’s share of value for investors who establish positions in these stocks now.
To find out more about how we rate all of the companies in the cannabis universe, take a look at this free report.
Executive Director, National Institute for Cannabis Investors
P.S. The CBD market has exploded virtually overnight. Thanks to news of its application for chronic pain, seizures, anxiety, and more – experts predict the market to grow more than 15 times faster than the overall cannabis industry. They’re even predicting CBD sales to jump 3,622% in the next three years alone. With this kind of growth, investors would be crazy not to consider this market. That’s why we’ve identified two CBD companies with massive profit potential… and you can find out all the details here.
11 responses to “Play These Stocks to Win the Global Cannabis Game”
July 03 2019