Just halfway through the year, and these bold cannabis market predictions are holding true – but there’s still much more to come in 2021…
Before last November’s election, I emphasized the rapidly accelerating state-by-state cannabis legalization wave sweeping the United States.
It was clear that states were no longer waiting for Congress to act.
Rather than sit idly by and wait for permission from the federal government, they’re flexing their Tenth Amendment rights to get it done themselves.
The momentum was so clear that I predicted adult-use cannabis sales would be legal in 20 states by the end of 2021.
Well, on Election Day 2020, Arizona, Montana, New Jersey, and South Dakota all passed recreational use laws (though South Dakota’s governor is putting up some resistance).
So far in 2021, New York, Virginia, New Mexico, and Connecticut have also opened their economies up to one of the highest growth industries on the planet during what’s turning out to be a record-breaking year for cannabis legalization.
That’s eight new recreational use laws, bringing the total count to 19 states plus the District of Columbia.
Rhode Island is sure to follow this summer or fall now that its Senate has voted overwhelmingly to legalize cannabis sales for all adults.
But we’re just halfway through the year.
Coming in 2021
As it stands today, cannabis can be purchased by any adult along the entire West Coast.
In fact, 43% of adults now live in a state with legal recreational use. Add in medical-use states, and that percentage climbs to over 90%.
Of Northeastern states, only Delaware, New Hampshire, and Pennsylvania have yet to go fully legal. The Delaware legislature is advancing a bill, and I bet we’ll be adding Pennsylvania to the list by year-end.
And with the NICI Membership model portfolio including all the top names in cannabis – the ones that will deliver shareholders the biggest potential gains this year – you can be sure that they have every high-growth market in the U.S. covered.
(Just yesterday, we added a brand-new cannabis stock recommendation to the NICI Membership model portfolio. You’re free to find out how you can access that and the rest of the top picks in the model portfolio, right here.)
As I’ve said all along, the expansion of legal cannabis sales is in no way dependent on Congress. States are doing it on their own. There’s no stopping it. And it’s a massive tailwind that will only push cannabis stocks four to five times higher over the next twelve months.
But there is one cannabis market move that we can expect from Congress this year. And as it comes to pass, that tailwind will transform into a full-on gale.
The Year’s Biggest Cannabis Market Catalyst
For all their progress, cannabis companies still don’t benefit from the full access to capital markets that every other company in the U.S. enjoys.
The large players with multibillion-dollar market caps still can’t list on the New York Stock Exchange (NYSE) and Nasdaq.
And that lack of access locks out a massive amount of investment from Big Money players that need the liquidity of major exchanges to buy enough shares to make a meaningful investment.
Other companies with high-velocity growth rates in revenue and profitability that are comparable to the top multistate operators (MSOs) trade at revenue multiples of at least 15 to 20 times.
Now, to put them on an even footing, Congress doesn’t have to go all the way to descheduling cannabis. It just needs to provide the NYSE and Nasdaq the legal clarity that they can list plant-touching cannabis companies operating in the U.S. without fear of federal prosecution.
And with bills like the SAFE Banking Act, MORE Act, and STATES Act working their way through Congress in one form or another, I expect these barriers to fall by the end of the year – possibly even by the end of summer.
Once this happens, you can bet that Curaleaf, Trulieve, and several other top MSOs currently in the NICI Membership model portfolio will all up-list their stocks from the over-the-counter markets (OTCMKTs) to the NYSE or Nasdaq in short order, giving them access to exchanges that trade over $50 trillion in stock per year.
That’s over half the trading volume that occurs on all public exchanges globally.
But you don’t want to wait for that to happen before you claim your stake in the highest-growth market in American right now.
Congress is hard at work…and waiting will only cut into the massive gains in store for the folks who get in on the best stocks right now.
So, make sure you’re set up to profit when the dominoes fall. Gain access to the hottest names in cannabis by becoming a NICI Membership subscriber today.
Executive Director, National Institute for Cannabis Investors
5 responses to “2021 Will Be a Breaking Point for Cannabis Legalization as a Record Number of States Take Matters Into Their Own Hands”
June 29 2021