Cannabis has come a long way in a short time.
The sector has been through its first (but certainly not last) ultra-explosive growth phase. Then we saw it undergo an expected, healthy correction, where investors - and, to be sure, companies - worked out which ideas were worthwhile and which were better left behind.
That's the free market at its best.
What emerged was a cannabis sector that's stronger and more robust than it was barely four years ago.
Now legal marijuana is primed and ready for the next leg higher.
And make no mistake: The innovative, sophisticated technology I'm going to show you today - which is another of the most disruptive, innovative sectors ever - is going to help propel it higher.
What I mean is those cannabis companies that realize the critical importance of high tech will have the edge they need to crush the competition - and deliver extreme returns to their shareholders.
Here's how...
Two Massive Trends Are Converging
Taken together, the biggest tech segments should pull in $5.2 trillion in 2020 - coronavirus and all.
Meanwhile, global cannabis demand reached nearly $400 billion last year, by some estimates, making it one of the biggest markets to emerge in decades.
Tech is a little older, of course, but both these sectors are still incredibly young by business standards. They're not done making waves, not by a long shot.
And some of the best innovations happening in the cannabis industry right now are a result of the top companies utilizing exciting new technologies to get ahead of the competition.
As cannabis enters a hypercompetitive phase, tech is separating the winners from the wannabes. E-commerce, delivery services, inventory tracking, automation, plant genetics - tech is going to meet a lot of needs - and benefit shareholders in a big way...
According to Marijuana Business Daily, companies like Cresco Labs Inc. (OTC: CRLBF), Exactus Inc. (OTC: EXDI), and Bonsai Cultivation are implementing high-tech systems to automate and fine-tune their cannabis growing environments for maximum efficiency (read: maximum profitability).
I'm talking about technologies that will allow these firms to produce more and better cannabis with less expensive labor by carefully controlling environmental factors such as water, temperature, nutrient levels, and exposure to light.
Beyond that, high-tech approaches to protecting crops from diseases, and, as I said, even improving their genetics, can be applied to cannabis, as well.
Phylos Genetics, a crop science company, maintains a genetic database of cannabis strains and seeds; it can put growers light-years ahead of the competition when it comes to growing "better weed."
Companies are even using digital integration to keep all of these variables precisely balanced with no need for hands-on human intervention.
A lot of these technologies already existed in agriculture and are now being adapted for use in the cannabis industry - creating a synergistic relationship where both cannabis and conventional agriculture support each other technologically as they optimize their own processes.
Tech Is Pushing Cannabis into a Hypercompetitive, Hyper-lucrative Phase
The top cannabis executives understand that using technology to maximize efficiency and keep their own production as consistent as possible is not merely necessary to get ahead. Rather, it is absolutely critical for their businesses to survive.
Marijuana is entering a phase where companies will do whatever they can to edge each other out. And as has been the case hundreds of times in my three-plus decades in the tech sector, the win is going to go to whichever firm has the right tech in the right place.
This process happens with any novel industry or business sector. Cannabis is no exception.
In the long term, the advantage that these early breakout leaders will have is going to make them outstanding investment opportunities for folks like you. You can click right here to learn how to get my friend and colleague Don Yocham's list of 10 stock recommendations under $10 that could put you on the path to life-changing cannabis wealth.
The best companies will continue their innovation streaks, and they will go on to buy businesses or assets that will have something going for them: technology, advanced equipment, market share, or some other edge.
It's a cycle that helps catapult new industries right into the mainstream, and I'm thrilled to see cannabis companies utilizing tech to get ahead of the pack.
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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.