Canada is breaking cannabis sales records, but there’s a catch. Here’s the real story…
If you follow cannabis news, you might have seen a report from Marijuana Business Daily on October 22 titled “Cannabis sales in Canada set 6th straight monthly record in August.”
This sounds exciting on paper, and if you read about Canada’s $357 million cannabis sales record in August without looking at the bigger picture, you might find yourself thinking its time to invest in Canada’s cannabis industry.
Plus, Canadian cannabis operators are already trading on the New York Stock Exchange (NYSE) and Nasdaq, which makes them highly popular stocks to own on trading platforms like Robinhood.
But just because something is popular doesn’t mean it’s worth your while. Don’t make the mistake of “buying the news” and taking these sales records as a sign to go buy Canadian cannabis operators.
Because the truth of the matter is that real moneymakers of cannabis investing are those operating in the United States.
In California alone in 2020, legal cannabis sales reached $4.4 billion. That’s right – California doubled the entire country of Canada’s total cannabis sales in a single year, with the national U.S. total reaching $17.5 billion.
That’s $17.5 billion in cannabis sales in a country where it isn’t even legal everywhere, and with each new state that legalizes, the moneymaking potential grows exponentially. In 2021, U.S. cannabis sales are expected to hit $24 billion, and $42.9 billion by 2025.
The Canadian cannabis industry simply doesn’t have the same explosive potential as U.S. operators who are already churning out bigger profits and better returns for investors.
It might seem appealing at first that you can buy the top Canadian cannabis companies like Canopy Growth Corp. (NYSE: CGC) or HEXO Corp. (NYSE: HEXO) on Robinhood, but there’s a major downside to this.
Investors in Canadian cannabis operators won’t profit from the massive catalyst that will happen once cannabis reform is passed in the U.S. and American operators are able to list on major stock exchanges, too.
And know this – reform is inevitable, and when that happens, the investors who took our advice and focused on U.S. cannabis operators will have huge gains to show for it.
Here’s one U.S. pot stock pick to get you started…
My Favorite U.S. Cannabis Stock
Curaleaf Holdings Inc. (OTC: CURLF) is one of the biggest multistate operators (MSOs) in the U.S. and one of the single best cannabis companies to own right now.
Curaleaf knows that the most money will be made from cannabis sales in the U.S., where it already has operations in 23 states with more than 100 dispensaries open.
The company’s chairman Boris Johnson said that he wants his company reach the 93% to 95% of U.S. households that still don’t currently consume cannabis. He said, “we’ll be no different than Coca-Cola or Frito-Lay.”
Curaleaf also recently closed its acquisition of the largest vertically-integrated cannabis company in Europe – EMMAC Life Sciences Limited – in 2020. While Europe as a whole was only a $359 million cannabis market last year, Curaleaf CEO Joseph Bayern believes it will one day be worth $120 billion.
Investors with the foresight to invest in CURLF now will see the biggest gains later on – I’m talking an easy triple-digit return.
But you can’t buy most U.S. cannabis operators on Robinhood because cannabis is still federally illegal – instead, you’ll have to open an account with a brokerage that trades on the over-the-counter markets (OTCMKTs).
When it comes to identifying the best U.S. cannabis companies to own other than Curaleaf, it can be difficult to separate the winners from the wannabes.
It’s a young industry, with plenty of red tape and regulations that make cannabis investing a unique stock market play. That’s why you want the National Institute for Cannabis Investors (NICI) in your corner to do the heavy lifting for you while you sit back and watch your money grow.
We even put together a handpicked portfolio of the best cannabis companies to own right now for our NICI Membership subscribers who can start building their returns today. Click here to view the model portfolio.
To your investing success,
Executive Director, National Institute for Cannabis Investors
3 responses to “Canada’s Cannabis Operators Are Breaking Their Own Sales Records – But American Companies Are Still Undefeated (Here’s One of Our Favorites)”
November 03 2021