They may call it "weed," but commercial legal cannabis – the "good stuff" – is more like a pampered, pedigreed dog.
Every pot grower knows that lots of care, technique, and technology goes into the cultivation and feeding of marijuana plants. All that's needed so those plants can flower and produce commercially and medically useful compounds – especially the psychoactive tetrahydrocannabinol (THC) that relieves pain and nausea and gets recreational users high.
This is seriously labor- and tech-intensive stuff. It's also the specialty of the company I'm going to show you today.
This company is one of the fundamental picks in my Nova-X Report's Roadmap to Marijuana Millions model portfolio.
And with it, you'll start tapping the profit power in legal cannabis and keep your risk low…
The Pros Can't Afford a Spoiled Harvest
Marijuana plants must be exposed to light for 12 hours a day – and be kept in darkness for just as long.
Kayvan Khalatbari and Nick Hice, co-owners of medicinal-marijuana dispensary Denver Relief, told The Denver Post that "the best place to grow marijuana is in a room in the basement with a locked door so light doesn't inadvertently get in when the plants are 'sleeping.'"
That's fine for folks who grow their own at home. If you spoil a "harvest" or two, you won't go broke or out of business.
Not so for professional, large-scale cultivators. They have little room for error. As they say in the trade, the "plants have to flower."
To protect their investment, growers turn to state-of-the-art greenhouses containing high-tech devices and monitors such as hygrometers, which see to it that humidity levels never get above 50%, and CO2 tanks, which add the carbon dioxide that plants breathe to indoor air.
Another way that major growers control cultivation is through "hydroponics," which is a method of growing plants in mineral- and nutrient-laced water, without soil. According to Manifest Minds LLC, hydroponically grown legal cannabis plants will make up a $24 billion market by 2018.
All this barely scratches the surface of marijuana technology. Growers also need high-powered horticultural lightbulbs, custom regulated fans, valves and pumps, nutrient and mineral supplements, and specialized "grow tents."
With growers so dependent on technology to operate the soon-to-be $200 billion legal marijuana industry, it's no surprise that Silicon Valley is pouring money into it. According to Cleantech Group, venture capitalists sink close to $1 billion into agriculture startups every year.
A 2015 report by MarketsandMarkets estimates that the market for "smart" greenhouses will reach $1.2 billion by 2020.
However, that $1.2 billion target is a tiny fraction of the potential profits to be had from this niche.
That's why I'm setting us up for maximum upside (and absolute minimum downside risk) from this trend…
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.