American Cannabis Summit
As an attendee of the American Cannabis Summit, you have now placed yourself at the forefront of a new gold rush - a "green gold rush." And it's just getting started. Never before has a large, existing, multi-billion dollar industry emerged so quickly and with so many opportunities for small companies and small investors. Never before has the average investor held such an advantage over the large Wall Street banks. And, more importantly, never before has the path to real, life-altering wealth in the stock market been so obvious, especially if you know where to invest. Today, in the United States, cannabis is a $10.8 billion industry.
But what does the future hold?
Could America's new cash crop become a $100 billion - or even a $1 trillion industry?
As we speak, big investment firms and members of the Fortune 500 are building enormous war chests. They're preparing to push billions upon billions of dollars into this market. And they could strike at any moment. So right here - right now - you have a once-in-a-lifetime opportunity to beat them to the punch and stake your claim. That's why I've gathered two leaders of America's cannabis revolution - Former Speaker of the House John Boehner, and Danny Brody, an executive behind two of the biggest cannabis IPOs in history - including the largest - to join us for our exclusive event on October 23, 2018. We're so glad that you'll be joining us for this nation-wide event, the first of its kind.
Ahead of time, we compiled this Cannabis Investor's Primer to break down everything you need to know, to give you the tools you need, to break into this lucrative industry. Consider this your companion guide to our upcoming event. Take notes, send us your questions, and get ready to hear what some of the world's leading cannabis figures have to say about the fastest- growing industry in America. Let's get started...
The Current State of Cannabis
The cannabis market has evolved at a rapid-fire pace. I already mentioned that cannabis is a $10.8 billion industry in the U.S. alone, and that is with it still being an illegal substance on the federal level. Right now, 31 states across the U.S., as well as Guam and Puerto Rico, have approved medical marijuana initiatives, and only nine states, including California and Colorado, have approved cannabis for recreational use. Meaning there is still a long way to go to reach full legalization.
But that hasn't stopped this industry from experiencing explosive growth. In fact, legal cannabis is currently the fastest-growing industry in the United States. And, if the trend toward legalization continues to spread to all 50 states, a topic we know Speaker Boehner is very excited to talk about during our American Cannabis Summit event, this "underdog" industry could quickly dwarf industry giants like alcohol, tobacco, organic goods, and even the entire NFL in just a handful of years.
By my calculations, the cannabis market will be a $100 billion industry in the next 48 months. That is a 12-fold increase from marijuana's current market value. We're talking about expansion and growth bigger than the broadband internet in the 2000s, cable television, and semiconductors combined. Remember, we're just talking about the U.S. market. We haven't even started to factor in the burgeoning Canadian market that just made a revolutionary legalization move of its own.
Canada's Cannabis Legalization Means Big Business
In June 2018, the Canadian federal government passed a bill legalizing recreational marijuana the entire country - officially making them the first G7 nation to do so. Once sales finally begin in Canada, it's expected that Canadians will be spending as much as $4.7 billion on marijuana in 2019. By 2027, it's expected that about 40% of all legal marijuana across the globe will be sold in Canada.
That incredible statistic cannot be understated.
Sales of legal recreational marijuana in Canada haven't started yet, which means there's still plenty of time to get in on marijuana stocks and ride the wave before prices soar. We've already seen what can happen when big changes in marijuana laws take place. In the election year of 2012, six states had legalization on the ballot, and select cannabis stocks soared 1,515%... 2,738%... 3,240% and more. Can you even remember the last time you heard of a single stock that made anybody this much money?
We think we know the answer.
Nobody had ever heard of profits this huge until now. And today, millions of mom-and-pop investors all over North America are earning them. Because the end of marijuana prohibition is the defining social event of our generation. It is radically changing how we ease our aches and pains, reverse chronic health problems, relieve stress, and melt depression. It is also changing how quickly we can amass wealth. It is transforming ordinary people into millionaires. And in more than a few cases, into billionaires.
But if you are a new investor just breaking into this industry, where do you start? Fortunately, during our exclusive event, Speaker Boehner and Danny Brody will be covering all of the moving pieces of the industry to help answer all of your questions surrounding the cannabis industry. They'll even be sharing the four companies viewers should consider targeting right now to start their journey.
But we wanted to give you a quick look at the different categories they plan on covering. Let's start with the types of cannabis stocks you can invest in...
Cannabis Investing 101
Cannabis companies come in all sizes and all manner of business plans. It's important to know about the states they operate in and the regulatory environment in those states, the product lines each company is making or selling, about how the company plans to grow. But broadly seeking, cannabis companies can be separated into a few different types of marijuana stocks, each with their own rewards.
The first is cannabis growers. These companies, including big names like Canopy Growth, cultivate marijuana (often in an indoor facility or greenhouse), harvest the crop, and distribute the end products to customers. These are your cannabis pure-plays. Now, most of the U.S.-based growers that are publicly traded have tiny market caps, but as you'll soon find out, that doesn't mean that there isn't a massive opportunity at play here for savvy investors who have the tools needed to pick out the winners from the wannabes in this space.
The second type of stock is cannabis retailers. These companies hold licenses to sell cannabis products. They can be large multi-state operators like MedMen, or they can be a single outlet looking to grow.
Then there are cannabis processors. A processor stands between the grower and the retailer, taking raw cannabis buds and turning it into a packaged product ready to smoke or, often, processing it even further into concentrate for vape pens, edible products such as mints and gummy bears, tinctures, "pre-rolled" cannabis cigarettes, and the like. Most U.S. companies that deal with cannabis directly are actually some combination of a grower, retailer, and processor. Over time we expect that these companies will become increasingly specialized, creating new investment opportunities along the way.
After that, we have ancillary cannabis products. Many companies do not deal with cannabis themselves, but they serve the cannabis industry with their own products and services. Microsoft, for example, has a partnership to provide cash registers to cannabis retailers, which help small businesses, comply with the massive amount of industry regulation. Other companies like Scotts Miracle-Grow have 20% or more of their sales to cannabis companies, and some have 100% of their business dedicated to the industry. Ancillary products companies can provide just about anything a cannabis company's needs, from growing lights to cash registers, to banking services or even real estate.
You will also see non-THC health companies. These are companies that make and sell CBD products - cannabinoid products which do not contain significant amounts of THC, the psychoactive component of cannabis. This is a relatively new market segment, and it is exploding in popularity. CBD products have the advantages that they are legal in all 50 states and that they can be produced from hemp, which is much easier and cheaper to grow than cannabis and can be shipped across state lines.
Finally, you will most likely encounter pharmaceutical companies. These companies are working through the regulated pharmaceutical market to develop cannabis products to treat disease. The biggest and so far the most successful of these companies, GW Pharmaceutical, is actually British. Others are Canadian, Israeli, or based in another foreign country. But if they're applying to the U.S. FDA for approval of their products, they're clearly focused on the U.S. market, and so they are U.S. investment opportunities.
Mind you, this is just a small sampling of the types of marijuana stocks you will encounter as an investor. But the bigger question is, how do you narrow down this wide net of stocks to find the best cannabis stocks, the ones that offer you a real shot at a massive payday? Start by asking yourself these three questions...
What Does Their Management Look Like?
The people running a company can tell you a lot about it. In a cannabis company, there are few people with any significant direct experience, but you want to see executives with substantial experience in business related to whatever the company is doing. People with backgrounds in retailing, agriculture, manufacturing, marketing, and advertising, etc. If you see that the person was associated with a bunch of unrelated companies that can be a red flag.
What Do Their Financials Look Like?
Often smaller companies will have various transactions with management or other affiliates of the company. Maybe the CEO owns the building where the company has its headquarters, and the company pays rent to that person. Or the company has a habit of acquiring companies owned by insiders. These are not a guarantee that a company is a scam, but companies which aspire to be larger, reputable public companies work to minimize these kinds of transactions.
How's the Business Doing?
This is a big one. And it comes with some secondary questions of its own. Is the company running a real, growing business? Does the company have stores where it says it does? Can you email a customer and find out if the company's product is available? How do the financial statements look?
These are all things you want to take into consideration when you start investing in a cannabis stock. Now, we've covered a lot so far. And I can understand if this all feels overwhelming. Breaking into a new industry can always feel challenging at first.
But don't worry.
We've set up our American Cannabis Summit up to give you all the information, access and guidance you need to help you make a fortune from cannabis. As you'll see on October 23, we've pulled out all the stops. We're doing everything we can to help you create the kind of wealth that lasts generations. We've called in every favor we could and spent millions of dollars setting up this one-of-a-kind event...
Truth is, we've never seen an opportunity like the one we have today with cannabis. You have the chance to get into cannabis before the federal government ends the prohibition...
Before big institutions pour billions of dollars into it, which can turn every day Americans into millionaires. To be absolutely clear, this is the opportunity of a lifetime. And we don't want you to miss it. So make sure you are signed up for our cell phone alert system, you've connected with us on your preferred social media channel, and if you haven't already, don't forget to submit your personal question to Speaker Boehner.