This is what our new Executive Director wants our members to know for 2020…
I want to thank The Institute for the warm introduction on Tuesday. I’m honored to find myself in a position to help you navigate the booming cannabis market in this new role.
Together, we stand at the cusp of a truly unique opportunity. Never before have everyday investors had such early access to the birth of an entirely new industry.
And never before has a new industry emerged with well over 260 million customers already in place – spending nearly $350 billion a year!
Compare that figure to the current $20 billion legal cannabis market and you can clearly see a wealth-building opportunity that has a lot of room to run.
At the pace that recreational use gets legalized, that $20 billion market has to grow at 80% per year just to keep up.
Revenues surging at 80% per year for a brand-new industry is completely unprecedented. With much of the road paved with existing demand, and because of the current lack of federal regulations, everyday investors like you have the chance to get in on the ground floor.
It’s a truly historic opportunity – and I get the pleasure of helping you make the most of it.
Unprecedented Profit Opportunity
You’ve heard us talk about the United States cannabis market being valued at $1 trillion, but the global market for cannabis could easily reach four times the size.
That’s $4 trillion in market value for global cannabis stocks – a long way from where cannabis market values sit now.
The promise of 263 million users spending $350 billion per year forms a massive foundation upon which to build an industry. And that base is primarily recreational use.
Moving those revenues from black-market deals to company revenues equals fantastic profits for early investors.
And a $350 billion market growing at 15% per year is just the start.
The Untapped Potential of the Medical Market
Next, you have to consider the potential for the medical market.
Medical cannabis helps treat a number of conditions. These range from things like neck pain, forms of dementia, anxiety, epilepsy, and Parkinson’s disease. We’re talking about a market of over one billion people.
Adding just one-in-five of those billion people to the cannabis market swells the ranks by another 200 million, shooting cannabis-derived revenues to over $600 billion per year.
And that just barely scratches the surface of the medical potential of cannabis.
Medical research into the benefits of cannabis has a long but limited history. Now, with marijuana stigma disappearing – and the potential to be more readily accepted – everyone from university research departments to pharmaceutical drug developers are getting into the act.
Take one of the private companies I recommended to our Cannabis Venture Syndicate members. It has developed a tailored CBD molecule, soon to enter Phase II trials with the U.S. Food and Drug Administration (FDA).
This new drug not only seems to stop nerve damage but to repair it, too. This has tremendous implications for those afflicted with a nerve-damaging disease like multiple sclerosis. And because it repairs nerve damage, this drug could even provide a cure.
Pharmaceutical drugs are a massive market. Prescription drug sales will soon surpass $1 trillion per year, and drugs derived from cannabinoids will carve out an ever-increasing share of that spending.
To the existing recreational base, medical cannabis, and pharmaceutical applications, we must add recreational demand from new consumers.
As normalization takes hold, new products become available. And that only adds to the market potential by piling on a new set of buyers.
THC-infused beverages, edibles, and vapes appeal to a much wider audience. And legalization removes the stigma of consumption.
For some, these cannabis products provide a better alternative to alcohol. And the threat that legal cannabis consumption poses to alcohol sales explains why behemoths like Constellation Brands (NYSE: STZ), Molson Coors Brewing Company (NYSE: TAP), and Anheuser-Busch InBev (NYSE: BUD) are looking hard, and investing big, in cannabis stocks.
Lastly, to all of this, we need to add in the demand coming down the pike from the promise of CBD.
Demand for CBD Continues
This market was virtually non-existent three short years ago. But now, it’s everywhere.
By 2022, most estimates project the CBD market to reach $22 billion. It’s starting from a much smaller base of demand than cannabis, but clamor for CBD tinctures, vapes, edibles, and infused beverages is growing even faster than the legal cannabis market.
The 2018 Farm Bill passed just over a year ago, and CBD spent 2019 entering the consciousness of consumers. A year later, and almost everyone has heard of it. CBD products have popped up on shelves across the country. And I’m not just talking about gas stations and head shops. I’m talking about major drug store chains, convenience shops, and grocery stores.
To see this potential, take another pick I made for our Cannabis Venture Syndicate members. It’s an upstart beverage company beginning to sell CBD-infused sparkling water across the country. Its lead beverage has hit shelves in 7-Elevens, can be found in the rooms of upscale resorts, and will soon be for sale in the largest grocery store chain in the country.
It’s a tiny start-up now, raising capital privately. But once sales kick in – and they will – I wouldn’t be surprised to see this company get bought out for over $700 million. That’s 35 times its current valuation.
With such a wide-open field of opportunity, you can see why I’m excited about helping you navigate your path to unprecedented wealth as the industry speeds towards becoming a $4 trillion global market.
Don Yocham, CFA
Executive Director, National Institute for Cannabis Investors
P.S. The kind of detailed, rigorously scrutinized information our analysts have put together on over 200 cannabis companies can’t be found anywhere else. In fact, some big investors would even pay up to $4,000 for the kind of research we’ve compiled. But it won’t cost you anything close to that to get access to our NICILytics database – for life. To learn more, go here now.
8 responses to ““We Stand on the Cusp of a Truly Unique Opportunity””
January 16 2020