It's something we say a lot here.
"Only in California."
In this case, it was a former federal bureaucrat being given "rock star" treatment.
And I wouldn't have believed it if I hadn't been there to witness it.
I was at the Cannabis Business Summit & Expo in San Jose, Calif., on July 26, finishing up watching the keynote address from James M. Cole – the then-deputy U.S. attorney general who authored the 2013 "Cole Memo" shielding states with legalized marijuana from federal intervention.
I've spoken with Cole before – so I approached the stage hoping to shake hands, catch up, and maybe make plans for a later meetup.
However, everyone else at the McEnery Convention Center had similar plans.
Hundreds of folks rushed the stage – but summit organizers quickly pulled out their walkie-talkies, surrounded Cole, and rushed him out of the building as if he were Mick Jagger.
Sure, I was a bit disappointed – but I also had to laugh.
It was yet another example of the amount of excitement surrounding the legal cannabis industry.
And like so many of legal weed's timeline events, I was there to witness it.
In today's report, I'll tell you what else I saw at the summit.
And now that we're apparently at the "rock star" stage of legal cannabis' lifespan, I'll give you my top three pot stocks to get you started.
Take a look…
From Bureaucrat to Rock Star
While I was surprised at the reception Cole (pictured below) received, I shouldn't have been.
After all, his memo was the signature event that helped the burgeoning legal cannabis industry move into the mainstream.
Many attending the summit were able to enter the cannabis industry in the last few years thanks to Cole's groundbreaking work and that memo – so they wanted to thank him.
Yes, earlier this year, U.S. Attorney General Jeff Sessions rescinded the Cole Memo. But that doesn't concern those here in San Jose.
That's because a workaround is in progress.
In fact, Sessions' boss, U.S. President Donald Trump, recently said he supports a bipartisan bill, known as the STATES Act, that would allow each state to determine for itself the best approach to marijuana within its borders.
During our original conversation, Cole told me he is a big supporter of the STATES Act.
"On the federal level, it would in effect legalize marijuana industry activity as long as it's in compliance with state laws," Cole told me. "If it passes, it could be a pretty major step towards certainty in the country."
As you might imagine, the STATES Act was wildly popular with those attending the summit.
Ben Bradley, a strategic consultant and former executive with the California Cannabis Industry Association, told me that industry members were already feeling optimistic before the STATES Act was proposed. A legislative compromise to the standoff between state and federal government will only help boost that sentiment.
"Empowering states to develop their own regulatory frameworks is definitely a good thing," Bradley said. "It's similar to when Prohibition ended [in 1933], allowing states to enact their own systems. And it goes along with the fundamentals, the fibers of our democracy, if you will."
Larry Schwartz is president of Cannabiz Media, a firm that supplies customer relationship management software to the marijuana industry. He told me that the STATES Act fits the nation's mood. This November, as many as 12 states will have legalization on their ballots.
"Anything that makes the industry more legit is a big help," Schwartz said. "When we started doing this four years ago, there were only a handful of states where marijuana was legal. Now we are up to 30 or so, and more coming in the fall."
Meantime, demographics are helping lead the charge toward legalization, Jesse Parenti, a partner in risk management firm Nine Point Strategies, told me.
"You have more than 70 billion baby boomers out there who are starting to change [drug] policies," Parenti said. "The feds are really not coming in here to crack down on the legal use of marijuana."
An Idea-Rich Environment
We've been pursuing legal cannabis profits for close to two years here.
And we've been quite successful.
But I've been tracking this field for much longer than that. Since 1996, in fact, when California made it legal to use cannabis for medical purposes. From that seemingly small start, the state has become a major marijuana powerhouse.
Even before it made recreational use for adults legal this past Jan. 1, California accounted for half the U.S. legal cannabis market. Then again, the state ranks as the world's fifth-largest economy, with a GDP worth more than $2.7 trillion.
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A report by the University of California Agricultural Issues Center suggests cannabis was adding $5 billion a year to the state's economy – before recreational use even became legal.
So, you can understand why there was so much excitement here in the heart of Silicon Valley last week. To me, holding the summit here in San Jose was appropriate, given the Valley's status as the place where cutting-edge investments get their start.
I certainly didn't hurt for company or interesting ideas.
Sponsored by the National Cannabis Industry Association, the summit drew 7,500 people working in every single aspect of the industry. We're talking everything from grow lights and hydroponic supplies to security services and edibles to harvesting tech, insurance, and marketing – not to mention industry data and other analytics.
I'm just scratching the surface here. With some 150 experts and industry leaders around, there were literally more workshops and seminars than any one person could possibly attend.
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About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.