Cannabis Catalysts Abound
Marijuana stocks are going parabolic again.
This is coming in waves as new states and countries open up various aspects of legalization.
The most recent salvo is coming from Canada, where Bill C-45 is slated to legalize cannabis nationwide.
Prime Minister of Canada Justin Trudeau announced recently via Twitter that:
We’re one step closer to legalizing & regulating marijuana. #BillC45 means less money for organized crime and harder access for our kids. Tonight, it passed third reading in the House and it’s now headed to the Senate.
It’s expected to pass, with full legalization occurring by July 1, 2018.
That market is expected to boost Canada’s economy by $22.6 billion annually. That includes growing and distribution, paraphernalia, tourism, and taxes.
Here in the U.S., states are following suit.
California has voted for recreational marijuana to go legal by January 1, 2018. That’s a market the same size as all of Canada.
As such, investors are getting positioned.
Take the Horizons Marijuana Life Sciences ETF (TSX: HMMJ), for example.
It’s up from $10.45 to $14.84 just over the course of last month — a gain of 42%.
Individual stocks are moving even faster…
Consider Future Farm Technologies (TSX-V: FFT), which specializes in LED lighting and vertical farming solutions for cannabis. It’s up from $0.14 to $0.43 since August, for a gain of 207% in just over three months.
Or Liberty Health Sciences (TSX-V: LHS), which is a producer of pharmaceutical-grade marijuana. It’s up from $0.75 to as high as $2.55 since September. A gain of 240% in under three months.
And last month alone, Aurora Cannabis (TSX: ACB) went from $3.00 to $8.45. One of the largest growers in Canada was up 181% in less than a month.
If you think I’m cherry picking these gains… you’d be correct.
They are all positions closed out by Jimmy Mengel’s Marijuana Manifesto over the past few weeks.
Members of that publication have been raking in gains hand over fist as attention has returned to the cannabis space once more.
But the bulk of the gains still lies ahead.
Canada, while its legislation is moving through parliament, doesn’t go fully legal until the middle of next year. Only a handful of states have passed legislation so far, and the U.S. will ultimately go fully legal at the federal level.
There are catalysts in the cannabis sector for years to come.
One stock Jimmy has a buy rating on right now is disrupting a $635 billion entrenched industry. And he thinks it will be one of the biggest wins in the space yet.
He got special access to go see the company's secure operations, and brought a video camera so you can see, too.
Big-gun investors, including Bill Gates and Peter Thiel, have quietly invested tens of millions into this medical wonder.
And you can see it today and invest alongside them.
Call it like you see it,
Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.
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