If you're familiar with Money Morning, you already know about the latest gold rush.
The cannabis industry is expected to grow to $66.3 billion by 2025.
And investors are scrambling for the best cannabis stocks to buy.
Category
Pot Stocks
Here Are Three Reasons Why The New York Times Is Dead Wrong About Cannabis
Last week, The New York Times ran an editorial piece with the headline, "Do We Really Want a Microsoft of Marijuana?"
The author of the report, Christopher Caldwell, opines that the SAFE Banking Act would disproportionately help giant operators at the expense of smaller companies. That, in turn, would usher in a dystopian future in which multinational businesses develop new flavors and products to turn America's children into a nation of potheads.
I read a lot of wrongheaded news and misinformation pieces about cannabis, but this one may be the winner in terms of getting things wrong.
In barely 1,000 words, the author makes three points that need addressing.
The first is the overall theme. We absolutely want a Microsoft of marijuana!
We want one as investors, as consumers, and as supporters of the industry. Microsoft has its flaws, but overall, a lot of people have benefited from the success of the tech company. We can partially thank Microsoft for reliable computer operating systems, sophisticated spreadsheets, and cheap cloud computing that allows us to share our ideas in real time all over the world.
Do we want a company with the resources to improve the accuracy and speed of cannabis testing, one that can grow more precise strains for medical patients, and one that can perfect security and seed-to-sale tracking?
I want those things. So do you.
And he doesn't know it yet, but so does Mr. Caldwell. Here's why… Full Story
And he doesn't know it yet, but so does Mr. Caldwell. Here's why... Full Story
These Canadian Cannabis Stocks Are Going Global
The worldwide cannabis market is expected to be worth $4 trillion. And two Canadian cannabis stocks have the jump on it.
Canada legalized weed for all purposes last year. Now, they look at it differently than in the United States. The restrictions, and even the stigma, are gone. Canadian cannabis companies have full access to supply chains, banking services, and legal services. They have everything else a company needs to succeed. But that is just scratching the surface.
Why I'm Not Worried by This Must-Own Cannabis REIT's Slide
Innovative Industrial Properties is one of my original cannabis recommendations. It's one of my favorites, too – and not just because it's given folks a chance at more than 200% in peak gains, either.
I like innovative because of its increasing yield and its totally unique position in the cannabis sector. It doesn't touch the plant, which frees it from the heaviest regulatory baggage, but as a real estate investment trust, it provides the real estate needed for cannabis companies to do business.
In fact, Innovative buys the cannabis facilities from the companies that build them and leases those facilities back at a handsome premium. Innovative collects rents in excess of market rates, and the companies get the cash they need to grow their cannabis business.
But since last we spoke about it, IIPR shares are down by about 35%.
Investors Haven't Figured Out There's a $4 Trillion Global Cannabis Opportunity Unfolding
Starting around 1913 or so, world governments were gripped with a kind of mania to ban cannabis. Jamaica, Mexico, South Africa, Canada… and on and on.
In 1925, the League of Nations revised the International Opium Convention, targeting the global trade in cannabis for the first time.
And in 1937, the United States' Marijuana Tax Act of 1937 effectively banned cannabis at the federal level here.
So in America alone, we've had more than 80 years of prohibition.
That's why I'm so impressed with how far cannabis has progressed here; the pace has been relentless. Marijuana is legal in some form or another in all but nine states.
But there's a big world of cannabis investing out there; globally, even in countries that have had prohibition just as long as we have, things are moving fast.
Let's look at some firms that are already branching out into "global cannabis"…
Full Story
Let's look at some firms that are already branching out into "global cannabis"... Full Story
Ignore Cannabis ETFs and Bank 200% Gains with This Marijuana Stock
The legal cannabis industry is expected to grow from $55 billion to $146 billion by 2025 – 265% growth in five years.
Some take that as a signal to go invest in the whole industry through cannabis ETFs.
But sometimes, if you hastily throw all of your money at an ETF, you run the risk of being a jack of all trades and master of none – or worse, taking a big loss.
And our best marijuana stock is a backdoor play you might not have heard of yet.
This Company Can Send California Cannabis Revenue Soaring 50%
You've got to hand it to 'em: California lawmakers definitely set their sights high when they legislated for full "adult use" cannabis legalization in the Golden State.
So they aimed high… and went a little wide of the mark. Or, more to the point, shot themselves in the foot. Those same legislators – and bureaucrats – have mucked up the implementation of full adult-use legalization.
Fortunately for us cannabis investors, private enterprise is stepping into the breech to help sort out the problems.
Why I'm Watching This Cannabis-Tech Firm
We talk a lot about the dominating position enjoyed by the largest producers of cannabis; that quality will get more, not less, important going forward.
But in a sector like marijuana, the niches (the needs that the biggest players can't or won't address) will be critically important… and – make no mistake – very lucrative.
One of the most important niches will be specialized cannabis growing equipment. This is important to several groups of consumers.
There are medical patients, for instance, who might have difficulty making it to a dispensary, or recreational enthusiasts keen on growing their own supply for the satisfaction of knowing exactly what's in the final product.
This is a rapidly growing niche, and if you've been a Money Morning Member for a while, you've had the chance to reap double-digit gains already.
Well, this segment and its profits are going to get even bigger…
What Every Investor Should Know About Canopy Right Now
Canopy Growth disappointed investors with its quarterly earnings. In fact, investors were so "disappointed" by this one report they sent the entire cannabis sector tumbling.
That's the thing: Canopy's results mean essentially nothing at all for American marijuana companies – nothing for any company outside Canada, in fact.
It's no different than if, say, California-based PG&E shares tanked because Consolidated Edison had a power failure in New York City.
But we're still in the early stages of legal cannabis' explosive growth potential.
Canopy led the sector down because investors are expecting results yesterday. And the results can be longer in coming than short-sighted investors might like.
So before you run out and sell all your Canopy shares, you need to see what I'm about to show you...
Why Constellation Brands Is Still a Company You'll Want to Own Forever
Back in early July, I told my readers that one of the "safer" ways to invest in Canopy Growth was through buying shares of Constellation Brands.
Constellation owns a 38% stake in Canopy, so it has skin in the game and exposure to the cannabis market.
But that's just scratching the surface…
Outside of its stake in Canopy, which is already a huge deal, Constellation is also the maker of Corona and owns whiskey, vodka, and tequila brands. This gives it yet another source of revenue and a defensive moat.
Bottom line, it's truly a force to be reckoned with in the cannabis sector!
However, Constellation is already looking ahead to the future. It has sold off some of its wine brands that retail for under $11 so that management can focus on selling more lucrative adult beverages.
Overall, I believe that this is a stock you can retire on. Why? Constellation is a powerhouse company you'll want to keep in your portfolio on a very long-term basis – because it's only going to grow every year.
With that kind of growth and profit potential, you'll be living a very comfortable retirement.
Now, the stock price did take a bit of a dip in January, but it's been rebounding ever since. And you shouldn't be listening to those newer investors who like to focus on the share price and say it's expensive. If you focus on accumulating shares of a quality company, it will add up over time.