My team just got back to the States from the land of unlimited pot stock potential: Canada.
Organizers estimated some 15,000 growers, researchers, retailers, policymakers, industry insiders, and enthusiasts attended a “double-header” – a business conference and cannabis expo that proved to be the biggest single-day weed-centric event in Canada’s history and the largest in North America today.
Eric Costen, director general of Canada’s Cannabis Legalization and Regulation Secretariat, opened the proceedings with a bang when he said, “The eyes of the world are watching Canada,” and reaffirmed Parliament’s commitment to a June 7 legalization vote.
The bill, which has the enthusiastic backing of Canadian Prime Minister Justin Trudeau, is widely expected to pass with flying colors.
Once the Queen’s representative, Gov. General Julie Payette, grants royal assent, it’ll be official: Canada will have a fully legalized, regulated recreational marijuana market.
You see, I fully expect Canada’s weed market to grow 20 times larger over the next decade. It’s hard to overstate the potential for investment riches.
I’ve got good company: Statista estimates the Canadian cannabis retail sector – a relatively small chunk of the broader market – could top $2.8 billion by 2020.
In the “big picture,” Deloitte expects the growers, value-added product markets, laboratories, security, tourism, exports, and all the other related segments could surge to $22.6 billion before much longer.
That’s why we’re watching this event so closely. It would’ve been unthinkable to miss out.
Things Will Move Fast – Very Fast – from Here on Out
Canadian cannabis players aren’t waiting around for the ink to dry.
Some of the best companies, like the ones in our Nova-X Report Roadmap to Marijuana Milllions model portfolio, are already jockeying hard for first-mover advantage ahead of this summer’s expected legalization.
RELATED: Top five tiny Canadian pot stocks are set to skyrocket. Click here…
Just like we’re getting into position to make the most possible profit from the coming wave of M&A, consolidation, and even “uplisting” – a rare and powerful profit catalyst.
Here’s what I mean by that.
You see, these Canadian companies naturally trade on the TSE – the Toronto Stock Exchange. Depending on your brokerage or trading platform, it can be anywhere from easy to impossible for Americans to buy, sell, and trade shares.
To get around this, many of these Canadian companies issue American depositary receipts (ADRs), on file with American banks, to allow them to trade “south of the border.”
Now, for most of the past few years, we’ve been able to buy and sell pot stocks; they’ve traded over the counter (OTC), on the so-called “pink sheets.”
But the “Green Rush” is on: Capital is pouring in, and as these companies mature, strengthen, and generally grow like gangbusters, there are opportunities for them to “graduate” to the major exchanges, like the New York Stock Exchange and Nasdaq.
For pot stock investors, this puts their shares on a par with some of the best companies in the world. In fact, we’re playing just such an uplisting in the model portfolio right now. I can’t name the stock here – it wouldn’t be fair to my paid-up subscribers, but you can learn how to get access to our model portfolio and pot stock research right here.
As my team saw at the Toronto event, more and more of these Canadian companies are aiming to make their move to American stock exchanges both before and after the expected July 2018 legalization.
But that’s not the only profitable insight we gleaned from this massive gathering – and it’s not the only way these companies have to raise piles of cash and deliver outsized investor profits, either.
This Sets Cannabis Companies Up for Global Success
I’m talking about going the “VC route,” a move that can be even more profitable for investors, as you’ll see.
Canadian marijuana startups have raised more than $1 billion over the course of 126 capital raises, as Mike Lickver, executive vice president of cannabis finance company Cannabis Wheaton Income Corp., told us at the business conference.
These firms are scrambling to be on top of the heap once Canada goes fully legal.
Remember, like Eric Costen said, “The eyes of the world are watching Canada.” Other countries – including, I believe, the United States – will almost certainly go legal in the future, and these Canadian firms want to retain their first-mover status.
This is all great news for investors looking to cash in on this incredible opportunity.
Martin Landry, managing director of Equity Research at GMP Securities LP, told us that while it may be tough to wrap your head around some of the valuations for these pot companies, he believes the best will achieve a high level of profitability following legalization.
For some firms, he said, that’ll “translate into 25% to 40% profit margins.”
Meantime, many of the outstanding pot companies are very well capitalized at the moment. “For me, that’s really reassuring,” he said.
It also means that these companies will be able to take to international markets to expand their footprints and turn into money-printing machines.
These are exciting times… and the profits are just getting started.
When Canada Takes Weed Fully Legal…
It’ll probably make our retrograde attorney general hopping mad, but there’s really nothing on Earth he can do to stop these small cannabis companies from hitting the stratosphere. Sessions could be furious, but folks who park a few hundred dollars into these “north of the border” firms could potentially turn a small stake into $100,000 – and fast. Michael Robinson has the details for you – click here to hear what he’s got to say…
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