The U.S. Cannabis IPO Wave Will Be a Massive Payday

Canada's fully legal "adult use" marijuana market throws the wild success of Canadian cannabis stocks into sharp relief...

In just the past year, Canopy Growth is up over 416%.

Cronos Group is up over 301% in that same time.

And Tilray, which only went public in mid-July, is up 577%.

These gains raise an important question: How can you make money on U.S.-based cannabis companies during this historic growth cycle?

After all, at about $8.5 billion, the United States cannabis industry is already larger than the Canadian market is projected to grow by 2022. And that growth isn't going to slow down anytime soon – Arcview Market Research and BDS Analytics project that cannabis spending in the United States will reach $23.4 billion by 2022, a 275% increase in just five years.

That's an extremely conservative estimate, by the way, in that it assumes few, if any, additional states will legalize cannabis for recreational use. But because other states are coming on board and will likely continue to do so, other estimates have the market growing to $50 billion by 2022 – a 42.5% annual growth rate.

Yet there are no fewer than seven Canadian cannabis companies with a market value in excess of $1 billion, compared with only one U.S.-based outfit.

I'm looking for that to change – in a big way.