For pot stock investors, the first half of 2018 stank.
It was choppy – to say the least – thanks in no small part to meddling from U.S. Attorney General Jeff Sessions.
But I kept telling you to keep the faith – that a number of catalysts were lining up that would once again send legal marijuana stocks into the stratosphere.
I was right – and those of you who listened can feel a bit smug.
While other investors are scrambling to get back into legal cannabis, you're watching your holdings grow... and grow.
We can date cannabis' latest surge to Aug. 15. That was the day Constellation Brands Inc. (NYSE: STZ), the beverage giant behind Corona beer and Robert Mondavi wines, announced its plan to spend $3.8 billion to increase its stake in Canopy Growth Corp. (Nasdaq: CGC) to 38%.
In other words, a mainstream corporation had weighed the risks – and marched forward with a plan to dive into the marijuana industry... to the tune of billions of dollars.
The news sent marijuana stocks soaring.
This one stat shows it all: The bellwether North American Marijuana Index has climbed more than 175% since lows reached on Sept. 7, 2017.
And this is just the start...
In today's report, I'll tell you why that's so.
Plus, I'll reveal the latest Big Alcohol company to come sniffing around the cannabis industry.
And I'll help you find four pot stocks with triple-digit potential to buy now.
Before the next catalyst hits.
Take a look...
This Bud's for You
Anheuser-Busch InBev NV (NYSE: BUD) is the latest beverage giant to take a look at the industry.
AB InBev just appointed a "Chief Non-Alcohol Beverages Officer" to help it expand the company's nonalcoholic (including cannabis-based drinks) division, which it expects will rake in about 20% of its overall sales by 2025.
This doesn't mean you're going to be sipping a cannabis-infused Budweiser anytime soon. At least not in the United States, not while marijuana is illegal at the federal level.
But it does mean this $150.39 billion company is looking more closely at how they may profit from legal weed. Once marijuana is legalized (or at least further decriminalized) on the national level, weed-infused beverages could rake in U.S. sales of $15 billion a year, Fortune estimates.
We've been talking here about the profit potential behind cannabis for about two years now – and profiting hugely – so this news comes as no surprise to us.
Shares in one Canadian firm in our Nova-X Marijuana Millions model portfolio have climbed 41.6% since Aug. 15. Another Canadian company's shares have climbed nearly 67% since June 21 when I entered it in our Radical Technology Profits cannabis portfolio.
In other words, mainstream investors are starting to see what we've known for a while – and what AB InBev and Constellation are acting on.
And they're far from the only beverage behemoths looking to boost profits by diving into the legal cannabis industry.
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Molson Coors Brewing Co. (NYSE: TAP), the Coca-Cola Co. (NYSE: KO), and Diageo Plc. (NYSE: DEO), the maker of Crown Royal whisky and Guinness beer, have also been meeting with Canadian cannabis producers over the past few months to talk about making their own marijuana sips.
See, these alcohol companies can't afford to get left behind as younger consumers shift their preference away from alcohol and toward cannabis. One study by the online social polling platform The Tylt found that 84% of millennials support marijuana legalization, while 88% said marijuana is safer than alcohol.
Banking on Cannabis
And cannabis beverages aren't the only signal that mainstream business is entering the marijuana industry at a rapid clip.
I've told you before how commercial banks have shied away from cannabis lest they run afoul of federal restrictions designed to curb illicit drug trafficking and money laundering. But that's been changing lately, as Wall Street and big banks joined forces to finalize the Constellation-Canopy deal.
Goldman Sachs Group Inc. (NYSE: GS) served as an adviser on the deal, while Bank of America Merrill Lynch – the corporate and investment banking division of U.S. giant Bank of America Corp. (NYSE: BAC) – financed it.
My guess is that not only does the Constellation deal mark a shift in how big beverage looks at legal cannabis, but it also marks a turning point in the drive to get commercial banks involved in the sector. U.S. banks now see a way to profit from legal marijuana, despite the fact that most still won't accept accounts from cannabis firms.
So hold on to your hats as the next major catalyst to cannabis profits looms large – the full legalization in Canada come Oct. 17.
I've already highlighted some of the best cannabis firms primed to rake in profits once dispensary registers starting ringing in sales north of the border.
Don't sit idle and watch these windfall profits pass you by.
Check it out today – before it's too late.
P.S. I hope you remember to sign up to get Tim Melvin's new "Bank 428% Gains or More Using the Five Max Wealth Rules" free report – and all of Tim's research in his new service, Max Wealth. If you haven't done that yet, just click here.
The post As Pot Stocks Reach Record Highs, Here's What's Coming Next appeared first on Strategic Tech Investor | Michael A. Robinson.
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...
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This all means the entire world is constantly seeking Michael's insight.
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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.
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