Wall Street can’t keep ignoring this cannabis market that’s four times the size of the U.S.
Cannabis was once the Wild West.
But now it’s ballooned into a global opportunity.
As we speak, cannabis is set to get the green-light around the world, and an entire class of cannabis companies has positioned themselves to profit from this worldwide economic phenomenon.
As I’ve previously discussed before, much of the attention on cannabis has been on the opportunity within the U.S.
And this singular focus isn’t surprising. Given the revenues realized in states where cannabis is legal, you can see how the value of the U.S. cannabis market could exceed $1 trillion once marijuana is fully legalized.
That’s because a fully legal U.S. market could reach $100 billion in annual sales.
From where legal revenues currently sit, that requires revenue growth of 80% per year to get there. Companies with revenues growing that fast can easily trade at 10 times sales. And 10 times $100 billion is $1 trillion.
The Markets Miss the Point, So Far
Even if we focus on just the 30 richest countries in the world, the U.S. represents 40% of that buying power. Assuming a market limited to only these countries, you’re looking at a global market worth nearly $2.4 trillion ($1 trillion is 40% of $2.4 trillion).
And that doesn’t include the big Latin American markets like Chile, Argentina, or even Brazil.
It leaves out large Eastern European countries like Poland or gateway-to-the-East Turkey, with 120 million people between them.
And while populations of rich Asian countries like Singapore, Japan, and Korea count, the three billion people in China, India, Indonesia, and Thailand don’t even figure in the opportunity.
Add in the rest of the world and the U.S. contribution to spending shrinks to 25%.
That puts a global market valued at $4 trillion within easy reach. And even a modest share of the global cannabis trade will mean billions in revenues and vaulting stock prices for those companies best positioned to capture those sales.
But the way the market is pricing these international cannabis plays, it’s clear they don’t yet see the whole picture.
Three Ways to Play Globalization
You know all about PharmaCielo (OTC: PHCEF). This mega-grower, based in Colombia, has the capacity to grow more cannabis than can be grown in all of Canada. It actually grows pot where pot should be grown!
And its international footprint already covers half the Southern Hemisphere.
But based on its valuation, the market is only giving it credit for 0.02% of future global sales – a mere sliver of tomorrow’s cannabis market.
Khiron Life Sciences (OTC: KHRN, OTC: KHRNF) is possibly another soon-to-be international heavyweight. It has access to over half-a-million patients, and Vicente Fox, former Mexican president and Coca-Cola Mexico CEO is on its board. Its expansion plans and connections will give it a huge international footprint.
And I told Cannabis Profits Daily readers a little about International Cannabis Corp. (CSE: WRLD, OTC: WLDCF) on Wednesday. This lean and hungry multi-national cannabis company has operations on three continents. With just a small management team, this tiny company is on an acquisition spree, quietly laying the groundwork for a truly global cannabis enterprise.
Know that markets are massively undervaluing these – and many other – global cannabis plays.
And make sure that you’re on top of the latest holdings in the Cannabis IPO Insider’s portfolio.
With the slew of IPOs set to come down the pike over the next few months, you’ll want to make certain you’re in those names that will profit once the global cannabis boom before the inevitable becomes obvious.
I told you recently that the IPO market tone is changing for the better, so I’ll also be sending out an alert soon on our current positions we want to add more to.
Executive Director, National Institute for Cannabis Investors
Montel Williams and His Incredible Cannabis Journey
You may know Williams as a successful TV personality.
However, you may not know that he is also a big supporter of cannabis legalization. He has multiple sclerosis, a disease that produces burning sensations from his head to his toes.
He’s been using cannabis since 1999, and with his first-hand experience, he’s launched his own line of cannabis products through Lenitiv Labs.
The company carries CBD and THC products throughout California.
Soon, his products will be available in dispensaries in Nevada, San Diego, and Oregon.
Williams truly has great insight about the cannabis industry, so we hope you enjoy this interview!
10 responses to “Look Here for the World’s Largest Market for Pot”
July 05 2019