Category

IPO

Stocks

There Will Be a Rush of Marijuana IPOs in 2019 Thanks to These 2 Events

Marijuana is truly the next gold rush. Marijuana stocks had an incredible ride in 2018, as more states and countries continue to legalize cannabis.

But we're now turning our attention to a flood of marijuana IPOs that we expect to happen this year. IPOs (initial public offerings) bring private companies public and open them up to investment by the public.

And there will be an absolute deluge of marijuana IPOs in 2019 following these two events...

IPOs

Why 2019 Could Be the Year of the Direct Listing IPO

This could be one of the biggest years yet for initial public offerings (IPOs), even though the government shutdown is delaying a few.

But not every company is looking to follow the traditional IPO path to becoming a public company.

Some of them, including Airbnb and Slack, are considering an unconventional IPO route called a "direct listing."

Here's what that means for your money...

IPOs

The U.S. Cannabis IPO Wave Will Be a Massive Payday

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 is up over 416%.

Cronos Group is up over 301% in that same time.

And Tilray, 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 project 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...