With surging sales and overflowing opportunities, the cannabis industry has become a powerful driver of economic growth…

There is a bright side to recessions.

As difficult as conditions get, people still don’t stop working to improve their lives.

It’s a human imperative that is as fundamental to who we are as a species as great works of art and music. And it’s an imperative that ultimately drives reinvention and progress.

So, while 20 to 30 million unemployed Americans is a tough number to stomach, one bright sector of the economy will help many of those affected reinvent their careers – cannabis.

Leading companies like Cresco Labs Inc. (OTC: CRLBF), Curaleaf Holdings Inc. (OTC: CURLF), and Green Thumb Industries (OTC: GTBIF) are proving that cannabis legalization is a key part of getting people back to work and getting the economy back on its feet.

These companies are still selling. They are still building. And they are still hiring.

And because of three powerful forces converging on this industry, cannabis will soon prove to be the biggest builder of tomorrow’s fortunes…

1. Surging Revenues Despite Shut-Downs

Across the entire economy, no other sector is growing at 30% to 50% per year in the face of economic contraction brought on by stay-at-home orders. For top cannabis companies, that translates to revenues surging 200% to 300% per year.

Results like these prove that cannabis stocks are defensive. Not only have cannabis sales been unaffected by economic contraction, but they have surged.

Take the leading cannabis company in Michigan as a prime example, where sales have climbed 100% higher from January levels.

The fact is that legal cannabis sales are up across the country, with 30% to 40% revenue growth per month in many places.

And this incredible growth, made possible by legalized marijuana sales, is getting the attention of politicians.

2. Pressure to Rapidly Accelerate Legalization

[RELATED READING] With the legalization of cannabis, states could generate millions and even billions of dollars. Here’s how COVID-19 is making the case for full cannabis legalization.

I’ve always maintained that federal legalization is inevitable. But given the current state of employment, the rapidly building pressure to legalize will force congress’s hand. Politicians can’t afford to dither on the sidelines while unemployment claims continue to pile up.

They can’t fiddle while Rome burns.

People want to work, and legalized cannabis provides a solution. One that doesn’t require tax dollars to make it happen. All politicians have to do is get out of the way.

The revenues, capital investment, and job growth will spur politicians to rapidly advance legalization far more quickly than I ever imagined possible just a few short months ago.

And while surging revenues and accelerating legalization are pulling investors into cannabis stocks, nothing draws them in faster than profits.

3. A Wave of Profitability

“The stage is set and the time to be in cannabis is now.” – Don

For the better part of a year, the cannabis industry has desperately needed to tighten its belt.

In general, expenses have far outstripped revenues. And because cannabis companies had a hard time raising capital last year, many were right-sizing their expenses long before COVID-19 struck.

This was a blessing in disguise. The ones that worked the hardest are now well positioned to grow profits in line with their remarkable revenue growth.

In fact, of the 50 largest cannabis companies by market cap, I wouldn’t be surprised to see half of them achieve profitability over the next 12 months.

It’s the prospect of profits that is already getting the market’s attention.

Greenlane Holdings Inc. (Nasdaq: GNLN), a cannabis house of brands, is up 147% from its March 18 lows.

GrowGeneration Corp. (Nasdaq: GRWG), a supplier for cannabis cultivators, is up 100% over that same period.

And Tilray Inc. (Nasdaq: TLRY), a leading Canadian licensed producer (LP), is up 231%.

Meanwhile, the S&P 500 Index has rallied 35%.

But this is just a start.

Given the confluence of factors converging on cannabis right now, I fully expect the stock prices of the top cannabis companies to trade 5 or even 10 times higher 12 months out. Wall Street is sniffing at the edges and legalization will clear a path.

The stage is set and the time to be in cannabis is now. I encourage you to click here to make sure you own the cannabis stocks in the best position to deliver life-changing profits.

Take care,

Don Yocham, CFA

Executive Director, National Institute for Cannabis Investors

Up Next: Cannabis 2.0 Is Boosting Sales Across Canada Just in Time for Summer

According to Advisory Board member Danny Brody, the cannabis market may just have a perfect storm on its hands – the kind where valuations are cheap, market capitalizations are low, and the time to buy could be right around the corner. Access Danny’s strategy for the summer market


Comments

12 responses to “Three Powerful Forces Are Converging on the Cannabis Industry”

  1. This is great. How can a first time investor get in and buy his first stock in one of these companies?

    • Hi Mark,

      To start you will need to open a brokerage account.

      These are some of the brokerages our members use and their customer service numbers are included to help you get started:
      eTrade 1 (800) 387-2331
      Fidelity – 1 (800) 343-3548
      TDAmeritrade – 1 (800) 669-3900

      Robinhood is also very easy to use, but it does not have all of the cannabis stocks we trade. But it is free to set up an account.

      You can also check out some of our free reports here about cannabis investing – https://nicinvestors.com/free-reports/

  2. Been getting alot of new of Hightimes going public? Haven’t heard anything about this yet from nicinestors?

    • Hi Larry,

      These are some of the brokerages our members use and their customer service numbers are included to help you get started:
      eTrade 1 (800) 387-2331
      Fidelity – 1 (800) 343-3548
      TDAmeritrade – 1 (800) 669-3900

      Once you have a brokerage account set up and have funded it, you can start searching for stocks by company name or ticker symbol.

  3. I started with $79 and bought membership into NICI, I literally put my last dollar up for some of the insights and tactical strategies that one can learn and utilyze those to start investing.I started about a year ago, and have put every possible dollar into several companies I was researching and a couple I just had a certain affinity for and in time you will seem you can buik yourportfo . So far my portfo Is packed with people and everybody wants to know how to turn their start up money into Majestic White Widow Scout Cookie Kind Bud Buillion,,,,, just like me…
    Save save save, use every money saving device you have and put it in. Sink or swim being my motto here, I am proud to say that I have about 4k in stocks at this point and a year ago I opened my brokerage account and threw in increments of 10 and 20 bucks at a time and Now

    • I am still doing exactly that and happy the stocks are still going downhill and I am losing money daily. The lower they get the more I am buying, because I got they absolute faith that it’s gonna turn,, and it’s gonna turn my way, not today,, not this month, but Ill own more stock in my picks and someday away my red numbers and thheres going to be many numbers, those red numbers are going to start turning green,,, all of them,,, well maybe not GGBXF but all the others…
      So when you ask, “How do I start?”
      Start by biting the bullet, quit spending, and start investing. $5.27 here $7.25 there. I’m going all in, Happy greenfields to all and to all a good pipe!~

Leave a Reply

Your email address will not be published. Required fields are marked *