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One of the "perks" of my job is unfettered, 'round-the-clock access to some of the sharpest, most successful people in the market. I'm talking about our experts here at Money Morning, of course.
When my iPhone "rang" late on Jan. 6 - and I saw that our Director of Cannabis Investing Research, Don Yocham, was the caller - I had a pretty good idea what my friend and colleague was going to tell me...
And my guess was correct.
No sooner had I said, "Hi Don, how are you" our cannabis stocks "guru" responded - with gusto, I'd say - "It's time to pound the table, Bill!"
I knew just what he was referring to; the monster rally in cannabis stocks sparked by the Democratic sweep of the White House and Congress...
This Is a Cannabis Profit Catalyst Unlike Any Other
The win was like pure rocket fuel for cannabis stocks, because it blew a hole clean through one of the biggest of the few remaining roadblocks to marijuana legalization.
Cannabis stocks, as tracked by the AdvisorShares Pure U.S. Cannabis ETF (NYSEArca: MSOS), have come as far as 21% higher ever since, with little in the way of looking back.
Two of Don's 2021 cannabis forecast picks - Curaleaf Holdings Inc. (OTCMKTS: CURLF) and Jushi Holdings Inc. (OTCMKTS: JUSHF) - have delivered peak gains of 30% each in 18 or so trading sessions.
(Don told me he's expecting Jushi to deliver 10 times the gains by the end of 2021 - a classic "10-bagger" - but in light of the bull run in the meantime, that may prove too conservative.)
"Bill, [the election result] supercharges the already underway 'Cannabis Boom' - revving up a wealth play that will lead to 20x to 30x windfalls," Don told me. "And the time to act is now."
Indeed, despite the fact that the gains are piling up fast and poised to accelerate, it's still not too late to take a position in what we've called "the top wealth play of 2021."
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Innovative Industrial Properties Inc. (NYSE: IIPR) is the perfect example - and the perfect place to start if you haven't already. Innovative Industrial is a cannabis-centric real estate investment trust (REIT); its business focuses on the cultivation and production of medical-use cannabis. Now, because of their unique structure, the best REITs have a tendency to throw off big profits with a healthy dividend "kicker." Innovative, which is unique in the REIT segment because of its cannabis focus, has delivered nearly 345% in profits since the recommendation first appeared in Money Morning in October 2018.
And, thanks to the recent "rocket fuel" injection Don was so excited about, this is likely just the beginning.
MORE Cannabis Profits Are Likely
Don went on...
"Think about this, Bill ... I mean, put the politics aside for a second... just to look at the opportunity itself," Don said. "The Dems didn't just win the White House. They didn't just maintain a majority in the U.S. House of Representatives. They pulled off an investment 'hat trick' - one that will launch cannabis stocks into orbit. The biggest roadblock to making cannabis legal across America has been removed. We could see the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act passed within weeks."
The MORE Act - which passed the House in early December - essentially decriminalizes cannabis by removing it from the Controlled Substances Act, while expunging entire generations of nonviolent marijuana crimes. Don says we can expect it to sail through the Senate and, ultimately, the White House.
And he's worth listening to. This was one of his three big cannabis predictions for 2021.
"The fact is, Bill, that this is one of the single most powerful moneymaking catalysts I've seen in my 26 years in the investing world," he told me. "It supercharges an already unstoppable trend - and a wealth wave you don't want to miss."
Look, I know there's a stigma about cannabis, but it's legal in all but a handful of states now; it's an investing sector that's maturing and coming into its own. There's huge crossover potential into other sectors, too, thanks to cannabis's unique medicinal properties - properties science is learning more about every day.
Medical and Recreational Cannabis Hold Huge Promise
As you know, I've covered the biotech sector for decades - both as a journalist and here as a stock-picker in the investment research world.
I know how long it takes to develop new drugs - a decade or more from researcher's workbench to commercially approved drug. And that trek costs drug companies an average of $2.6 billion over the course of a development cycle.
RELATED: You can learn all about how to join the National Institute for Cannabis Investors, and get access to Don's proprietary cannabis-stocks database, trade alerts, and stock recommendations right here.
But cannabis is in no way new. It's a natural substance that's been seriously studied for at least 50 years. From a biotech or Big Pharma standpoint, that means a higher likelihood of a "compressed" time-to-market cycle for medically focused cannabis - and getting new therapies more speedily into the hands of the folks who need them most.
The medical market alone, I believe, will fuel hefty growth. But Don's talking "hyper growth" - because of the recreational use market, which federal decriminalization would fully open up.
"See, Bill, here's where I'm coming from: I'm bullish on medical, too. But as big and promising as the medical cannabis market looks to be, the recreational market is even bigger," he told me. "And this whole medical-to-rec transition I'm talking about here - well, that's just getting started."
I'll continue to follow these stocks here at Money Morning - and will add some recommendations of my own soon.
But I'd encourage anyone to learn more of what Don has to say. Check out his National Institute for Cannabis Investors (NICI) group - you can get access to a proprietary database of trading research recommendations, which stem from the stock-price forecasting model Don developed for NICI members.
Don currently has "Buys" on more than a dozen top cannabis companies, many of which could be scooped up for around $10 or less. NICI folks also get access to Don's personal network of industry insiders, including the top C-suite folks, financiers, marketers, consultants, analysts, entrepreneurs, and cannabis leaders he talks with weekly. Learn more about joining here...
Editor's Note: Bill Patalon's Private Briefing hits subscriber inboxes three times every week. You can learn how to get access to all of Bill's investing research - plus his exclusive interviews with experts - right here at MoneyMapPress.com.
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About the Author
Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning at Money Map Press.