One smart fish offered a cannabis investing lesson to never forget…
“…any man who puts his intelligence up against a fish and loses had it coming.” – John Steinbeck
Cold water sprints past just below my knees as my old school Converse sneakers slip on the wet, round rocks underfoot. Meanwhile, a rat’s nest of fishing line rests in my hand.
I’m in this pickle because a clumsy attempt at keeping my fly out of a hanging tree limb spooked me into jerking my backcast. And now, this messy ball of frustration stands between me and my typical vain attempts at catching fish.
The easy way out is just to cut the line. But I don’t. I hold the hopelessly tangled bundle in my hand and start gently teasing at the knotted mess.
Soon, my tugs give way. Before you know it, the knot’s in my leader yield, and I get back to letting fish outsmart me.
Sometimes, patience is its own reward. And sometimes, patience pays.
Anyone invested in cannabis over the past year-and-a-half has learned a thing or two about patience. Now, it’s paying off.
I’ll show you what I mean in just a minute, but suffice it to say, we have witnessed a sea change in cannabis stocks this year.
This sea change isn’t clear for all to see. Some investors remain on the sidelines – waiting for Congress to act or waiting for the President to clear the way. One way or another, they are all waiting for some politician to tell them it’s okay for them to make money with their money.
But waiting for permission will be the biggest, get-left-behind mistake you can make.
Because based on these signs, it’s clear that patience with politicians is up – and now is the time for you to make your first bold move into cannabis stocks…
States Didn’t Wait for Permission
Four key players are making the cannabis boom possible – and that’s because these players aren’t asking the Feds for permission.
Let’s start with the states.
Legalization has been driven by the citizens of each state ever since California made the first move in 1996. Citizen-driven ballot measures have legalized cannabis in state after state. And now, 46 states plus Washington D.C. allow for cannabis access – putting legal cannabis within reach of 97% percent of the United States population.
Clearly, states aren’t waiting for permission.
They see the jobs. They see the investment. They see surging taxes. They see all the positive impacts legalized cannabis has on their economies and the benefit it has for citizens. And this has spurred entrepreneurs the country over to set up shop and take advantage of the boom.
There are hundreds, perhaps thousands, of cannabis ventures established in the U.S.
And that’s exactly what’s happening in one of the most highly trafficked areas on the planet – Las Vegas.
One tiny startup is on the cusp of signing what could turn out to be a $2 billion deal right next to the Vegas Strip, but there’s a hitch: we’re taking this research presentation down tomorrow because the company will soon stop accepting investments. Your $1 shares are still available – but not for long.
This tiny company is just one example.
From small mom-and-pop dispensaries to craft growers to large multi-state operators (MSOs), entrepreneurs didn’t wait for permission from the Feds. They seized the opportunity, and now the customers are pouring in.
Just look at some of the biggest markets for cannabis. Sales in Illinois are up 63% this year. In Florida, 81% more cannabis got sold in August than in January. And in Michigan, sales have surged 212% from December to July!
So, you can see, customers have all the permission they need. And that massive surge in sales has rewarded cannabis investors’ patience.
Trulieve Cannabis Corp. (OTC: TCNNF) has rallied 233%, and Green Thumb Industries (OTC: GTBIF) is up 271%. And even though it was hampered by having to rely solely on deliveries during the COVID-19 shutdowns, the stock price for Planet 13 Holdings Inc. (OTC: PLNHF) has risen nearly 5-times, going from a low of $0.63 to $3.12 – a 395% rally.
It’s this massive surge in stock prices – and the enormous trading volumes that come with it – that has exhausted the patience of yet another key player.
Major Exchanges Signal They’re Done Waiting
On September 1, the AdvisorShares Pure Cannabis ETF (NYSE: MSOS) began trading on the New York Stock Exchange (NYSE).
Listing an ETF comprised of plant-touching U.S. cannabis stocks signals that exchanges, the fourth key player catalyzing a boom in cannabis stocks, no longer view these stocks as risks. And, to me, this is a giant leap in the mindset of the fine folks running the exchange.
They have grown impatient waiting for Congress to act. And listing the MSOS ETF provides a clear sign that their patience is at an end.
Now, I’m personally not a fan of cannabis ETFs. You have to pick your spots in cannabis, and simply getting broad exposure to cannabis stocks instead of carefully picking your spots means you leave a lot of money on the table.
But it’s the simple fact that they listed the ETF that heralds the coming of a new phase.
The next inevitable step will be to allow U.S operators to list on a major exchange.
Before you know it, stocks like Curaleaf and Trulieve – both among my favorite cannabis stocks – will be among the first on the Nasdaq or NYSE. And that will open the floodgates for big money players to make their move.
The Time for Patience Has Ended
With exchanges listing U.S. plant-touch cannabis stocks, mutual funds managing trillions in assets will make begin allocating to them. And significant stock indexes will have no choice but to add these companies, pulling in billions more in capital.
I’ll tell you more on Thursday about the moves I see big money making right now. But suffice it to say that they, too, have lost patience. They see the opportunity to mint millions of dollars playing the cannabis boom, and they again realize they don’t need to ask for permission from the Feds.
The years have taught me that, whether through pastimes or my 25-year-plus investing career, patience has its place. Wield it well, and you get rewarded. But I’ve also learned the hard way to recognize when the time to act has come. Because when it does, you either move or watch that opportunity pass you by.
States didn’t need permission. Companies didn’t need permission. Customers didn’t need permission. Exchanges see that they don’t need permission. And big money investors now realize that they don’t need permission, either.
That means you don’t need permission to make your move into cannabis stocks. But you’ll want to do it before the Big Money does.
The time for patience has ended, and you’re free to let cannabis stocks build a 10X wealth for you with your money.
Executive Director, National Institute for Cannabis Investors
5 responses to “How One Failed Fishing Attempt Led to the Biggest Moneymaking Lesson in Cannabis”
September 22 2020