Back in September, when I made "Four High-Profit Predictions About Pot Stock Investing in 2018," I recommended investors get prepared for what I believe will be one of the most significant moneymaking triggers we've ever seen...
I'm talking about California, of course, and its upcoming Jan. 1, 2018, total legalization of marijuana.
That means medical patients and adult recreational users alike will be able to use cannabis and buy from legitimate, regulated businesses starting Jan. 1 in California.
Now, as you know, legal marijuana is already booming in the 29 U.S. states where recreational and/or medical cannabis is legal.
But California, the nation's most populous state and, indeed, the world's sixth-largest economy, is in a class by itself.
Total legalization here could open up the money floodgates for folks who own the right stocks.
So let's look at what we know so far... and why this is huge news for small pot stocks.
New Laws Put the Market in Much Clearer Focus
So, we knew legalization in California was going to be "big," and now that the California Bureau of Cannabis Control has released 276 pages of regulations that the Golden State's marijuana businesses must abide by next year, we've got a better idea of where this is going.
Because, as one of my "rules" for cannabis investing goes, "When laws pass, pot stocks soar."
The numbers here are absolutely staggering. California's market is bigger than any U.S. state, and even than all of Canada. We're talking $7 billion a year - just to start.
Arcview Group expects revenue to jump to more than $21 billion by 2021.
I'll show you why the Golden State might as well change its name to the Green State; it's about to become ground zero for pot stock profits.
These regulations should be great for California's weed market. They do mostly what I expected, although, as you'll see, there are a few welcome surprises, too.
They're largely common-sense steps designed to make the market work and keep users and non-users alike safe. That's great news for investors.
Take a look...
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The new regulations lay out a groundwork for recreational marijuana business operations - everything from licensing fees and managing the seed-to-sale process, to regulations on where (not near schools, of course) and when (till 10 p.m.) weed can be sold, to security (24-hour video surveillance is required).
Then there are some laws that the late-night comedians have been having fun with - but that really make perfect sense. For example, "edible products cannot be shaped like a human, animal, insect, or fruit." That's an effort to keep cannabis-infused munchies out of the hands of kids.
Then there are some other laws that don't appear to make much sense at first, until you realize what they're really about.
For instance, marijuana businesses are prohibited from using drones to transport their product.
They're also not allowed to use "aircraft, watercraft... rail, human-powered vehicle [or] unmanned vehicle."
So essentially, they've got to use vans or trucks, just like other perfectly legal "sin" businesses.
Even if those laws seem like no-brainers, it's still important to note that California published them now. It lets us know that California is on track to legalize cannabis on Jan. 1.
Then there's the set of regulations that really caught my eye.
Now, my team and I have been researching California's upcoming legalization for almost a year. We thought cannabis farms would be limited to a one- to four-acre cap.
Well, forget that.
While the new regulations do place some limits on certain growers, beyond that "there is no limitation for the other categories of licenses." At least, that's what California Department of Food and Agriculture spokesman Steve Lyle said in an email to The Los Angeles Times.
Here's what that tells me.
It allows large businesses to obtain as many licenses as they can afford and threatens the long-term viability of small farmers.
But that's what we've been saying here all along.
Big business will eventually control this huge and fast-growing industry.
But at the outset, dozens of small, publicly traded companies - many with shares trading for $1 or less - could be the first to cash in - before they're seen as tempting takeover targets... and another wave of profits hits.
These little stocks could skyrocket when California throws the switch on totally legal weed. So here's what I suggest...
I'm Getting Ready to Release My Research
Like I said, my team and I have spent most of last year hunkered down, researching the best ways to make money off the legalization craze sweeping the United States and Canada.
We've come up with winner after winner after triple-digit winner for my paid-up Nova-X Report subscribers.
But California's new laws mean the biggest gains for pot stocks could lie just ahead.
So I'm hosting a special California Pot Stock Explosion Summit this Thursday, Nov. 30, at 8 p.m. ET.
I sincerely urge each and every one of you to attend.
Listen: I've run the numbers - and I believe that, if you get ahead of this moment, you could see gains as high as 15,251%.
During the California Pot Stock Explosion Summit, we'll talk all about how you can get in on these historic windfalls - on the ground floor.
Click here to reserve your spot for this Thursday at 8 p.m. ET. My team will send you your special California Pot Stock Explosion Summit e-mail reservation and instructions on how to attend right away.
Don't miss your shot at being a marijuana millionaire.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.