The stunning success of Canadian cannabis stocks is no secret to sharp investors.
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 Corp. (NYSE: CGC) is up over 416%.
Cronos Group Inc. (NASDAQ: CRON) is up over 301% in that same time.
And Tilray Inc. (NASDAQ: TLRY), 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 projects 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.
This will give you an idea of the size of the potential opportunity on our hands...
About the Author
Greg Miller started working on Wall Street in September, 1987, just a month before the “Black Monday” stock market crash.
During his career there, he became an expert in just about every kind of publicly traded security - from blue-chip and small-cap stocks to municipals, junk bonds, and derivatives. As a portfolio manager, Greg was responsible for over $500 million of assets in mutual funds and insurance company accounts.
After leaving the Street, he designed a successful options trading strategy and made lucrative tech investments for a financial publication. He has also helped develop new products and worked with other editors to hone their strategies. He’s always been dedicated to deep, fundamental research - and he always will be - because he believes buying the very best companies at the right price is the best way to amass wealth in the stock market.