Our grandkids (no doubt flush with comfortable inheritances) may not ever realize that Wednesday, Oct. 17, 2018, was the day “everything changed.”
That was, of course, the day recreational “adult use” sales of cannabis became legal in Canada – the world’s 10th largest economy and the first G7 member to completely legalize the green stuff.
This was a historic moment and a massive profit catalyst for weed investors.
And in a way, “Green Wednesday” was the start of a high-profit journey, not the end. Because, to be clear, Canada’s bold move is a key part of a growing global trend.
Soon, markets around the world, including the United States, will be opening up as the end of marijuana prohibition plays out over the next few years.
Critical: Speaker Boehner Heads America’s First-Ever Cannabis Summit on Tuesday, October 23rd – Click Here to Attend This Free Online Event
No wonder Grand View Research forecasts the global cannabis sector will be worth $146.4 billion by 2025. And Deloitte says the Canadian market alone could be worth $22.6 billion in the next several years.
Big business sees the profit potential in Canada as well.
Constellation Brands Inc. (NYSE: STZ) announced plans in August to invest $3.8 billion in the Canadian cannabis firm Canopy Growth Corp. (NASDAQ: CGC). Constellation is the $43 billion beverage giant behind Corona beer, Robert Mondavi wines, Svedka vodka, and many other well-known brands.
Since that mid-August announcement – in just two months – some of my favorite weed stocks have absolutely exploded.
- Canopy is up 105%.
- Aurora Cannabis Inc. (OTC: ACBFF) is up 157.8%.
- Cronos Inc. (NYSE: CRON) is up 86.5%.
- And Tilray Inc. (NASDAQ: TLRY) is up an astounding 508%.
The S&P 500 over the period has retreated 1.2%.
Of course, we may yet see some folks “selling the news” and sending pot stocks lower, but this is a very young business – and cannabis is a very long-term investment that will be making us rich for years to come.
This proves what I have been saying for some time now – legal cannabis is an unstoppable force that can make savvy investors a lot of money… if you have the right investing guide in your corner.
That said, while pot shops and e-commerce sites across Canada have opened up, it’s not as many as hoped. And some customers… and investors… are feeling discouraged.
They shouldn’t be…
Walmart Could Go “Weedmart”
Last week, Walmart Inc. (NYSE: WMT)’s Canadian division said it was exploring the possibility of selling cannabis-infused products in its stores.
While various global beverage and tobacco giants have been showing interest in the legal cannabis market, Walmart is the first big retailer to do so. And considering founder Sam Walton‘s conservative bona fides, that’s probably the most surprising choice possible.
COUNTDOWN TO OCTOBER 23: Mark Your Calendar for the Biggest Cannabis Event of the Year – Click Here to Claim Your Spot
Earlier this year, the mega retailer greenlit the sale of American Cannabis Co.‘s soil mix via their online store. While this isn’t exactly the same as stocking their shelves with bud, it’s a big step for the traditionally conservative retailer.
In the United States, cannabis is still illegal on the federal level, and Walmart doesn’t want to make any bold stances that could anger its American shoppers. So instead of selling marijuana, it’s looking into another popular sector of the marijuana market – cannabidiol, or CBD.
CBD is the non-psychoactive agent in marijuana. One CBD drug – a childhood epilepsy treatment from GW Pharmaceuticals Plc. (NASDAQ: GWPH) – just got reclassified as a Schedule 5 drug in the United States, on par with cough syrup. Many companies are looking into CBD-infused beverages to market as “health drinks” that could help with chronic pain and inflammation.
The marijuana industry was valued at $17.18 million according to a recent study by Genesis Market Insights. By 2023, it’s expected to reach $59 billion.
So it’s no surprise Walmart wants in on those profits.
Nobody wants to miss out on profits like these.
Least of all you…
An “Under the Radar” Catalyst
While Canada’s legalization has been dominating marijuana headlines, there have been moves underway elsewhere in the market that haven’t got as much attention as I’d like.
Canopy announced Monday that it plans to purchase Ebbu, a Colorado-based hemp company. Canopy says the acquisition will “complement and accelerate” its current research, as well as help with the development of new products.
Speaker John Boehner on Cannabis: “Something has to be done. Something WILL get done very soon.” Click Here Now…
Already, Canopy’s stock rallied as much as 9% following the news of the acquisition – even in the face of other stocks getting slammed by those “selling the news.” Canopy has agreed to pay Ebbu CA$25 million (US$19.1 million) for the “intellectual property and research and development advancements achieved by Ebbu’s team.”
Canopy is exploring a hemp and THC-rich cannabis genetic breeding program. It’s also looking into cannabis-infused beverages. With Ebbu, it’s hoping to speed up this process.
Ebbu specializes in the purification and study of CBD for product development, retail, and research. And that’s exactly the type of knowledge Canopy needs to continue its work.
For consumers, it means new strains of marijuana. These different strains can have different effects on the body, from calming to energizing. Scientists playing with these components means new strands would hit the recreational and medical markets.
Its “drinkables” could be alcohol-free “marijuana beers” that get you high instead of drunk. They could also take the form of health drinks with anti-inflammatory and pain-relieving properties.
For investors in Canopy and other well-positioned weed firms, it means even bigger profits just around the corner.
Mark Your Calendar: Speaker Boehner Is Making a HUGE Announcement at the American Cannabis Summit
It’s America’s most exciting and controversial industry – and former Speaker of the House John Boehner believes it’s time to go “all in.” On Oct. 23 at 1 p.m. ET, he’s joining our esteemed panel to help you make a fortune from America’s $10.8 BILLION green gold rush. As a special treat for Money Morning readers, your attendance to this historic event is 100% free of charge. All you have to do is click here to save a spot.
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