Next Ground Floor Opportunity In Legal Marijuana Now Open
Marijuana Stocks, Finance, & InvestingUncategorized January 2, 2019 MJ Shareholders
- Marijuana stocks not correcting, they’re going through a transition
- Cannabis stocks today are like investing in marijuana in 2015
- The real marijuana growth story is here and it’s just getting started
- How to pick out top marijuana retail stocks before they move
The marijuana industry is going through its greatest transition since the marijuana boom all began in 2015.
And getting on it now is just like getting in marijuana stocks back in 2015.
The only difference…it’s going to be even bigger.
Best of all, the timing is absolutely perfect.
This is going to be big and in a few months you’ll be glad you’re learning about it all right now.
Here’s why.
Marijuana Stocks Aren’t Correcting, They’re Transitioning
Marijuana stocks look like they’re going through a major correction right now.
A sharp drop for many of the former leaders has been neither unexpected nor unprecedented.
After all, marijuana stocks have had a great run over the last few years.
We’ve watched the marijuana companies like Aphria (APHA), Aurora Cannabis (ACB), and Canopy Growth (WEED | CGC) grow into multi-billion-dollar juggernauts over the past few years.
Their shares have soared 10x, 20x, and as much as 50x over.
They were the big winners in the first stage of the marijuana boom.
Now, their high-flying shares are getting stomped on.
But here’s the thing.
This isn’t merely a correction like we’ve seen a couple times in marijuana stocks over the last few years.
It’s much different and the start of new growth in the industry.
What you’re seeing is a fundamental change in the marijuana industry and marijuana investors need to start moving now if they want to get in on it.
Because the most significant change in marijuana history is just getting started and it’s launching an entirely new segment of the industry.
Just connect these dots and you’ll see how one currently tiny marijuana sector is about to grow exponentially and you’ll be able to pick out the right marijuana stocks to ride it all the way to the top.
That Was Big, This Is Bigger
The entire Canadian marijuana market went through a sweeping change in October.
On October 17, 2018 marijuana was fully legalized and the entire industry changed overnight.
The largest marijuana companies were totally unprepared for it all too.
Marijuana companies reported demand blew past all expectations with lines around the block at the few legal marijuana distributors and inventories were completely sold out.
This was all perfectly predictable.
The exact same thing happened in Colorado, Washington, Nevada, California, and every other place marijuana was legalized right before each of those grew into legal marijuana markets worth billions of dollars today.
Canada’s situation was even worse though.
Since Canada’s legalization was exceptional – it was the first in the world to be fully legalized at the federal level – the rollout was hamstrung by government regulations and the unique market structure.
You see, Canada left each province to set up its own regulatory framework.
In some Provinces there’s a central government distribution in others its Private. Some Provinces are only allowing purchases from government stores the way some of them control alcohol sales. In others, retail stores are legal, but they were not legal until the marijuana was fully legal, so they couldn’t have been built until marijuana was fully legal. Even now there are only a handful of stores open in the entire Country!
It was a total mess.
However, that’s not a problem, it’s an opportunity.
And there’s a group of companies already positioned to capitalize on it all in the next few months and they’re poised massive growth ahead.
Largest Legal Marijuana Market Up For Grabs
The recreational use marijuana market is the market every investor must focus on.
Medicinal use marijuana was a good opportunity (it’s in the billions), but recreational use marijuana is where it’s at.
That’s why the legalization in Canada was so important.
When the law went into effect, it made the recreational use market completely legal.
That means the estimated $6 billion market curent market could hit $9 Billion in 2020 with even more growth beyond that.
Three things happen now that marijuana is legalized in Canada:
– Transition from illegal to legal users – The most attractive part of investing in marijuana it’s not a new industry, it’s merely the end of a prohibition.
Marijuana has a large and established market of illegal users. The current market for illegal marijuana in Canada is between $4 billion and $6 billion per year.
Now that marijuana is legal, the illegal market sales will transition quickly to legal market sales.
– Expanding access – Legalizing marijuana will make it more accessible to regular consumers who didn’t want to get involved in illegal drug sales and the criminal risks posed through purchase and consumption of an illegal product.
With marijuana now legal, expect to see the buildout retail locations and storefronts to tap into a market that just didn’t exist when marijuana was outlawed.
– Social acceptance – Legal marijuana will be more socially acceptable over time.
Employers are already implementing rules for marijuana use among employees and legalization makes it far more socially acceptable to be a marijuana user.
All of these are combining to create a potential market for marijuana far greater than most assume right now.
And retail marijuana companies are about to go through a period of growth by serving this market as it quickly transitions.
How To Pick A Winning Marijuana Retail Stock
Marijuana retails are in the ideal position right now.
They’re in a totally new industry that was just legalized a few weeks ago.
There will be many companies out there to capitalize on this growth too.
However, don’t expect most (or even that many) to truly capitalize on this opportunity.
There will be big winners in all this and the likely winners have three main advantages which will set them apart as the retail recreational use marijuana market takes off.
The three critical determinants of what will make a winning marijuana retail stock are:
Lead Time
If you’re going to start a marijuana retail brand right now, you’re too late.
Industry insiders have been preparing for the legalization and rollout of the retail market for years.
The licensing process for retail locations is long and expensive much like the cultivation licensing process.
The companies which will lead the buildout of the recreational use marijuana market will have dozens (or more) already in the pipeline and merely waiting for final approval.
Location
The location marijuana retailers can acquire and develop will be essential to their growth.
They will need to be in both provinces with large population and which allow retail marijuana stores.
The first provinces to authorize retail marijuana stores are British Columbia and Alberta and both have large populations and major cities.
Ontario has announced its intention to authorize retail outlets in 2019, but rules haven’t been set and license won’t be issued until well after then.
As a result, western Canadian provinces and its large potential markets will be the essential starting for any marijuana retailer.
Funding
The one thing which all marijuana investors have learned over the last few years, legal marijuana is an expensive business to get in.
Competition is high, but the winners in the last stage of the marijuana boom were all those that were able to raise and deploy large amounts of capital.
The leaders in the retail stage of the marijuana boom will be the companies which have already built of sizeable war chests to fund growth strategies.
Those three elements will be the key factors in which companies are able to win the race for retail marijuana in Canada.
Here’s an example of one which meets all three of these criteria.
The Next Marijuana Winner
The Seed Investor has scanned the entire marijuana retail stock universe and picked Choom Holdings (CSE:CHOO / OTC:CHOOF) as the next big winner in marijuana.
There are three reasons why.
Choom has a big lead time over its potential competition.
It has been building out a brand and targeting retail opportunities throughout Canada for almost two years.
It has targeted 45 specific retail locations and, and as more Provinces open private retail marijuana stores, it has announced its position to be in those markets too.
The company is working very diligently to open stores and acquire retail licenses when issued.
Choom is in the right locations.
Most of the retail opportunities Choom has identified are in British Columbia and Alberta, which are the two major provinces to open private retail marijuana locations.
Choom has the funding required to take a big share quickly in the emerging retail market.
It has raised tens of millions of dollars in order to fund the establishment of its brand, retail network, and go through the expensive and time-consuming legal process of acquiring retail licenses.
It also recently received an additional C$20 million in funding from marijuana major Aurora Cannabis to accelerate its buildout.
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Choom has everything going for it to get in on the retail marijuana market now that legalization is here, and it can finally start to grow with full legalization now complete.
The Biggest Prize In All Of Marijuana
The Canadian marijuana market is not correcting, it’s transitioning.
The legalization of marijuana was a watershed event and created huge opportunity for marijuana retail – and it has only just begun.
The companies which have positioned themselves for the transition will be experiencing exponential growth in the months ahead.
Specifically, marijuana retailers with the head start in building out retail networks in the best jurisdictions and have already obtained ample funding are going to be the big winners in the legal retail marijuana race.
If you missed out on the first wave of the marijuana boom, the next one is just getting started.
The greatest wave of marijuana growth is here and its retail.
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