These companies are battling it out to win California, Nevada, Arizona, Florida, and New York…
I always want to keep you informed about the legalization efforts happening across the United States.
I’ve talked about Florida a lot lately. It’s one of the fastest-growing cannabis markets in the country, with over 210,000 medical patients as of May.
I’ve also talked about Nevada being the cannabis tourist capital of the world thanks to Las Vegas, and I’ve gone into great detail about how California needs to turn itself around after a disappointing recreational launch.
I’ve even discussed how cannabis investors are focusing too much on New York and New Jersey and not enough on what is happening on the rest of the East Coast.
With talking about states so much, I know our members have questions about what companies are poised to dominate the U.S. market.
In fact, I received just such a question.
Which Stock Is Poised to Dominate?
One of the questions I received was about which company would win over the entire U.S. market.
Mel M. asks: “I’m hearing about one stock poised to dominate California, Nevada, Arizona, Florida, and New York. What are your thoughts on who is in the position to take over the U.S. market?”
Mel, there are several companies that want to dominate each of those states. Cresco Labs Inc. (CSE: CL, OTC: CRLBF), Curaleaf Holdings Inc. (CSE: CURA, OTC: CURF), Harvest Health and Recreation (CSE: HARV, OTC: HRVSF), Green Thumb Industries (CSE: GTII, OTC: GTBIF), Acreage Holdings (CSE: ACRG, OTC: ACRGF), and MedMen Enterprises Inc. (CSE: MMEN, OTC: MMNFF) all have national reach.
If they’re not currently in each of those states, you can be sure they’re looking for a way to enter them, either by winning licenses or by acquiring existing license holders.
You can add Illinois and Massachusetts to the list of states a company must be in if it wants to be a national player.
Who will win?
We don’t know yet.
This industry is too new to know for sure. But a quick look at the Cannabis Investor’s Report model portfolio will tell you who I think are the most likely winners. I can say that I think there will be more than one winner over the next few years.
There’s also more investing strategies than ever before when it comes to cannabis stocks, and Cannabis Lots have opened up a whole new world of investing opportunity.
Cannabis is going to be a very large industry, and there will be more than one retailer that will find enormous success.
This week, one of our members also wanted to know about new regulations in California.
Welcome to California 2.0
David N. asks: “Greg, I read in California that a new regulation is making vapes have the new universal symbol on its label. It says this is going take a lot of time and trouble for companies to comply. How will this effect Ionic Brands and the rest of the industry?”
Great question, Dave.
I asked CEO John Gorst this very question, and he said that his company, Ionic Brands Corp. (CSE: IONC, OTC: IONKF), got kind of lucky. That company was just starting to ship vape pens in California, so the additional cost was minimal.
I will also have a story out Monday about vape pens, so keep an eye out for that.
The bigger story here is that the new labeling requirement is part of a larger story of California constantly changing and updating its regulations, imposing the costs of change on the industry.
In the near term, that helps larger companies that have more resources to make adjustments. In the long term, California is going to have to get its act together on this subject.
Enjoy your weekend,
Executive Director, National Institute for Cannabis Investors
17 responses to “The Companies Fighting to Win the United States”
August 24 2019