American cannabis markets get a lot of attention from investors, and deservedly so. As far as legal markets go, the various U.S. states constitute the largest in the world, and they'll continue to for years.
After all, the legal marijuana market in California alone is far bigger than the even the vast Canadian market will ever be. Multi-state operators (MSOs) are learning how to build operations and brands across the United States, despite patchwork legalization.
These ingenious pioneers will define the American cannabis market of tomorrow; they'll make millionaires of U.S. cannabis investors, too.
I'm talking market dominance here.
Still... no one can afford to count out the Canadian-licensed producers. They have something that American MSOs don't.
Investors who own both U.S. and Canadian marijuana stocks will have an unbeatable advantage - one that will be reflected in outsized profits...
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Canada Boasts One Clear Advantage
Canada's market might not ever be as big as the United States, but make no mistake: It is big. The Canadian Imperial Bank of Commerce (NYSE: CM) estimates it will hit a not-to-be-sneezed-at $6.8 billion Canadian dollars (US$5.05 billion) by 2020.
And of course, cannabis is clearly, unambiguously legal in the G7 nation - unlike the United States.
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Because of that legal clarity in Canada, Canadian cannabis firms have the leeway to build a portfolio of global assets.
And they are using this legal head start and the big balance sheets flush with cash that they have built to acquire assets throughout Europe.
The licenses, cultivation facilities, and distribution they're buying represent substantial beachheads to launch their global cannabis ambitions. And these markets have the potential to be every bit as big as the United States.
In 2018, 6% of Europeans used cannabis - whether legally or not - which makes for a market of about 44 million consumers. All told, that added up to about $68 billion in sales.
Now, that number doesn't even account for the massive growth we expect in sales of CBD products. When you factor that in, you've got an easy double over recreational marijuana use.
With rapid adoption of medical marijuana, revenue will virtually have to grow at triple-digit rates every year for several years until we're looking at a market with sales measured in the hundreds of billions of dollars.
So, for the handful of Canadian companies with the foresight and financial wherewithal to build a European footprint, they stand to dominate the global cannabis market in the years ahead.
These Firms Are Buying into Huge European Markets
I recently wrote to you about Canopy Growth Corp. (NYSE: CGC). With its $4 billion war chest, courtesy of Constellation Brands Inc. (NYSE: STZ), it has acquired assets in the United Kingdom, Denmark, Germany, Italy, Spain, the Czech Republic, and Poland.
Aurora Cannabis Inc. (NYSE: ACB) has every bit as extensive a reach, but it's also in Lithuania, Luxembourg, Malta, and Portugal.
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Aphria Inc. (NYSE: APHA) isn't as flush with cash, with around $70 million, but it has penetrated Germany, Italy, Denmark, and Malta. And Tilray Inc. (NASDAQ: TLRY) has found its way into Germany, the UK, the Czech Republic, Croatia, and Cyprus with just shy of $300 million to work on even more acquisitions.
That's going to add up to incredible profits...
When Canadian Cannabis Firms Go Worldwide, Monster Profits Follow
The cannabis sector is in the process of scaling up.
Global scale means priority access to $344 billion in traditional marijuana consumption, plus a few hundred billion in new cannabis markets. And with a legal market growing at over 80% per year, the market values of all cannabis companies will speed past $1 trillion before you know it.
And the wealth created for investors owning scalable cannabis stocks now will set them and their families up for generations. Getting in on cannabis now is like pulling up a chair right next to the founders.
After all, so much value creation happens in the early stages of a company's growth that you want to secure your seat before the big money moves in and pushes stock prices through the roof.
America's Green Gold Rush Is Just Getting Started - Claim Your Stake Now
At this very moment, 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 the cannabis 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.
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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.