Great Year for Cannabis Stocks! Here’s Why 2021 Will Be Even Better ...
This has been a great year for cannabis stocks.
A leading index of marijuana stocks has doubled the performance of the S&P 500.
And from the March lows, it has TRIPLED the gain in the S&P.
This chart tells the story with no punches pulled ...
What has driven this tremendous outperformance?
I count FIVE megatrends that are converging in time, gaining momentum, propelling revenues, boosting earnings and delivering smashing profits to investors ...
Marijuana Megatrend No. 1
Legalization for 70% of the U.S. Population (So Far)
Sure, the Federal government is dragging its feet legalizing cannabis. But voters in state after state are saying “yes-yes-YES!”
In fact, voters in New Jersey, Arizona, Montana and South Dakota all legalized recreational cannabis.
South Dakota also approved a medicinal marijuana program on top of recreational.
Meanwhile, Mississippi voters approved a purely medicinal marketplace.
And that leaves us with a map of U.S. cannabis that looks like this:
As you can see, a total of 15 states have now legalized adult-use recreational marijuana.
Add in those states that allow medical marijuana use, and that’s a total of 36 states with some form of legal marijuana.
That covers 70% of the entire U.S. population!
But that’s not the end of the story.
In fact, 2021 will likely see MORE legalization, which will lead to MORE profit potential for leading U.S. cannabis companies.
According to data from Marijuana Business Daily, five more important states are likely to legalize in 2021:
That includes New York, Connecticut, Maryland, Pennsylvania and New Mexico.
New York, which could legalize by April, is a biggie. According to the study, sales in this state could hit $975 million in the first year alone ... then rise to $2.3 BILLION by the fourth year.
Pennsylvania could jump out of the gate with $800 million in sales, then see that rise to $1.8 billion.
Combined, these five states could generate more than $2.5 billion in sales in the first full year of recreational legalization, and $6.4 billion annually within four years.
Why? Because they’re all desperate for tax revenue, especially as COVID-19 shuts down small businesses by the thousands.
Marijuana Megatrend No. 2
Surging Value of IP
IP is short for intellectual property. That’s going to be huge going forward, the key to many of our biggest winners.
I’m talking about patents. For example, patents on the actual processes to turn cannabis into new miracle molecules, new miracle drugs. That’s going to be very, very big.
Marijuana Megatrend No. 3
Here’s something most people don’t know: You don’t have to grow a plant to get THC, the ingredient in cannabis that gets people “buzzed,” or CBD, a beneficial medicine in the plant.
Once scientists identify the active molecule for THC and CBD, they can perfect it in the laboratory and manufacture it in factories.
It’ll be like Aspirin, made in a factory. They’ll be able to make THC and CBD from things like yeast. And there’s a tremendous amount of new activity in the scientific community focused on this.
The actual term is geomodifiers. They call them geomodifiers because they actually modify things like yeast to become the equivalent of the cannabis molecule.
They already have this invention. Now, they’re working on making it cheap enough to bring to market. We see this trend exploding very soon.
Marijuana Megatrend No. 4:
Rapid Delivery Systems
Right now, any drink containing THC has to be processed through your liver, which takes at least 45 minutes to take effect. It can take even longer. But there’s a new process that makes it possible to be absorbed directly into your bloodstream.
It’s called microencapsulation.
Not only will it turbocharge sales and profits from cannabis drinks. It could also turbocharge sales and profits of cannabis edibles, which is a potentially HUGE market.
Take Mondelez International, Inc. (Nasdaq: MDLZ) for example, the company that makes Oreos. They’re looking into putting out snacks with CBD in them. Again, microencapsulation is the key. Thanks to that process, Mondelez can actually put out a line of CBD snacks that has a much quicker effect.
Imagine a kind of granola or other sort of snack bar with CBD in it to help you recover from a hard workout.
Megatrend No. 5
A Cornucopia of Cannabis Medicines
The final marijuana megatrend I want to talk about today is the exploding market for cannabis compounds, including CBD. People think CBD is the only chemical found in pot plants. But they’re wrong. There are actually 113 separate compounds in cannabis, and CBD is just one of them. For example, have you ever heard of CBN?
For investors, it could be extremely important. CBN helps you sleep. And it also promotes bone growth!
That’s just one of the 113 micro ingredients!
And again, some of these may become much more important even than THC or CBD. We’re just at the very early stages of these discoveries.
They haven’t been discovered before because it’s been ILLEGAL to do research on marijuana. But now, in countries around the world, scientists are getting to work and unlocking the medical mysteries of the cannabis plant.
Get Ready for a Wild and Profitable Ride
So, put all these megatrends together, and yes, 2021 is going to be EVEN BETTER for select cannabis stocks.
If you buy a cannabis ETF like I mentioned earlier, you should do okay. The really big potential, though, is in select stocks.
However, be aware that not all pot stocks are created equal. This is why we’ve invested a ton of money to develop the Weiss Cannabis Stock Rankings.
And man oh man, has it paid off!!
We rank over 100 cannabis-related stocks based on their upside profit potential, downside risk, liquidity and other factors.
We invest strictly in the stocks at the very top of our rankings. If a stock falls below the top tier, we rotate it out. As another stock rises to the top, we rotate it in.
And the historical data shows that applying this strategy consistently could have turned an initial $30,000 investment into $1.4 million.
Plus, after the first two years, it could have given you the opportunity to pull out an average of $20,000 in spendable cash per month and STILL wind up with a nest egg of $1.4 million.
Of course, no one can predict the future with precision. But right now, I see a very similar opportunity unfolding.
For the full scoop, watch our Urgent Cannabis Investor Briefing. (If you’ve already started watching, it will give you the option to resume or restart.)
Just bear in mind that it will go offline THIS Wednesday. Permanently.
So, this opportunity will be gone for good.
So, I suggest you watch our briefing now while you still can.
All the best,