Canadian Cannabis Legalization: Beginning Of A New Growth Industry – Where To Invest

Every few decades, a brand new investment sector arises.

In early 1900’s, industrialization began with car, airplane and oil all invented or discovered at the same time that heralded multiple growth sectors who did extremely well for wealth creation for over a century.

In the early 1970’s, Middle East discovered oil and America seized the opportunity by creating a US dollar hegemony circle whereby USD gained strength to become a premium currency (dethroning the GBP), made a deal with Saudi to sell oil exclusively in USD against which America provided military support. This created an American military sector second to none worth trillions of dollars and has been creating wealth until date.

Then, in 1975, Microsoft was formed that created the 3^rd revolution (besides green revolution and the industrial revolution) known as the technology revolution. It led to the creation of innovative giants like Hotmail, Google, Apple, Blackberry, Dell, Adobe and hundreds more. 

Except for leaders like Google, Apple, Amazon, Netflix, Facebook, SalesForce and Nvidia etc today, most companies are falling apart (Blackberry, Panasonic and Motorola), slowing down (IBM, Oracle and Dell) or closing (Nortel, Ericsson and WorldCom). Because tech companies have a lifespan of a maximum of several years with some rare exceptions.

Today in 2018, a brand new industry to make money for decades ahead is being born. 

It is not as path breaking as discovery of oil or the car engine, but it certainly is a huge sector like alcohol or restaurant or online e-commerce sector.

It is called the Cannabis Sector. 

It's the recreational use of Marijuana. 

Until now, drugs have been illegal worldwide. It became a huge multi billion dollar business globally but officially remained “illegal”. 

Some 29 counries legally permit the medical use of marijuana. However, almost no country allows recreational use of marijuana. 

Recreational use refers to someone buying marijuana legally from a store, just like we buy alcohol or beer in a bar or a store today.

Canada is going to become the FIRST country in the world on 17 Oct 2018 (52 more days to go) from when marijuana will be sold legally across the entire country.

There are several benefits to legalising marijuana such as recovery of taxes to the Govt on all sales, quality will improve due to checks by Govt and laws in place. All illegal activity will cease and hopefully crime and homicides will reduce as well.

In future, more countries are expected to legalize the “recreational” use of marijuana just like we can safely and freely drink alcohol almost worldwide for the last several decades. This includes Australia, Germany, Israel and others who are currently studying this sector.

A big advantage is that this marijuana will be used for medical PLUS recreational use both.

Business is expected to EXPLODE in the months and years ahead.

According to the Canadian Govt, CAD 5.7 billion of marijuana was bought in 2017 (90% illegally). 10% use is legal under medical supervision since marijuana is legal for medical use in Canada.

Comparatively, Canadians spent CAD 22 billion on alcohol.

While in the US, sales of medical marijuana are around USD 8.5bn.

Canadians spent $5.7B on marijuana last year, StatsCan estimates

If this becomes legal, just in Canada, sales will be well over CAD 10bn in the first year, could go upto CAD 15-20bn as well.

Last week, the multi billion dollar owner of Corona beer invested USD 4bn in a company in Canada. 

They invested in a company called CGC (Canopy Growth) in Canada. It was formed in 2014 and shares were trading at CAD 2 in 2014 and 2015, CAD 3 in 2016, CAD 8 in 2017, CAD 20 in Dec 2017 and today are at CAD 58.

That’s almost 300% return since Jan 2018!!! 

That’s 600% return in the LAST 1 year! 

And 2,900% return in 4 years!

We promise you that no banker or adviser will ever suggest to anyone to invest in such stocks. 

Because bankers, research analysts, brokers and financial advisers do not have a clue about pathbreaking new industry trends and don’t have any interest in making money for their clients.

Plus the laws of regulation do not allow them to suggest to clients to invest in such stocks and breaking new innovative trends because they are considered high risk.

15 Aug 2018: Corona beer maker Constellation ups bet on cannabis with $4 billion investment in Canopy Growth

On Friday, 24^thAugust 2018, news broke that the world’s largest company, Diageo, that owns almost every single brand of alcohol like Heineken beer, Tanqueray Gin, Captain Morgan Rum, Johnnie Walker, Talisker, Baileys, Guinness, Smirnoff Vodka and many more wants to invest billions in some Canadian company. 

They are talking to 3 companies whose names are undisclosed as of right now. Please watch the video here:

24 Aug 2018: U.K. alcohol giant Diageo circling Canada for cannabis deals

One of the companies, we suspect that they are talking to is Cronos Group The shares of this company dual listed on Nasdaq and TSX has jumped about 100% in ONE WEEK!

They were around USD 5 last week and now are at USD 10.

This stock has the potential to go above USD 50 in the next 1 year.

It’s quite risky and will be volatile. So whoever invests in it, must follow (buy and sell) it very closely.

Do not see this as a recommendation to buy any stock. Please seek advice from a qualified financial adviser. Past performance is not a guarantee of future returns. You may risk and lose your entire capital in any stock. We may or may not have a stake in any of the stocks mentioned.

Just the global use of medical marijuana (excluding recreational use) is expected to go more than USD 180bn worldwide. 

20 Aug 2018: Canopy Growth: Undervalued Canadian Cannabis King 

Some major stock moves in the last 1 week are:

In the past week, marijuana stocks with $100-million-plus market caps trading on U.S. exchanges performed as follows: 

22nd Century Group Inc (NYSE: XXII): up 6.4 percent

Aphria Inc (OTC: APHQF): up 33.2 percent

Aurora Cannabis Inc (OTC: ACBFF): up 32.6 percent

CannTrust Holdings Inc (OTC: CNTTF): up 22 percent

Canopy Growth Corp (NYSE: CGC): up 33.3 percent

Cronos Group Inc. (NASDAQ: CRON): up 55.6 percent

Green Organic Dutchman Holdings Ltd (OTC: TGODF) up 14.4 percent

Green Thumb Industries Inc (OTC: GTBIF) up 18.3 percent

GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH): up 5.3 percent

Hiku Brands Company Ltd (OTC: DJACF): up 33.1 percent

iAnthus Capital Holdings Inc (OTC: ITHUF): down 0.8 percent

Medical Marijuana Inc (OTC: MJNA) up 12 percent

MedMen Enterprises Inc. (OTC: MMNFF) up 2.6 percent

Scotts Miracle-Gro Co (NYSE: SMG): down 2 percent

THC Biomed Intl Ltd (OTC: THCBF): up 28.1 percent

Tilray Inc (NASDAQ: TLRY) up 42.9 percent

Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE): up 0.3 percent

Are you ready to puff a marijuana joint while making money from a revolutionary new investment trend?