To say the least, Nov. 6 – Election Day – will be significant.
There are many important issues at stake – the economy… healthcare… national defense… immigration.
But the stakes may be highest for cannabis stock enthusiasts.
That’s because voters in several states will decide on the fate of legalization ballot measures.
Polling thus far indicates that voters will say “yes” to all of these legalization measures. If the polls are accurate, that’s going to mean a happy election season indeed for the firms best positioned to take advantage of soaring sales and profits thanks to potentially millions of more new customers.
And because When laws pass, stocks soar, it will also be a happy day for pot stock investors.
Now, I know what you might be thinking: What’s having four more legalized states going to mean for this huge global industry?
After all, 30 states have already legalized medical cannabis, and nine states, and Washington D.C., also have legalized recreational cannabis.
Even former Speaker of the House John Boehner has said he suspects we won’t have to wait more than five years to see the federal government legalize cannabis.
This year alone, California and Canada went fully legal.
But I’m here to tell you that there’s actually a lot on the line.
A whole lot.
Here’s the thing…
With nearly 300,000 registered patients and more than $600 million in annual sales, one of the four states voting next Tuesday is already the No. 2 medical marijuana market in the nation.
Only California’s market is bigger.
And full legalization would likely turn it into one of the top markets overall – with $2 billion in annual sales – overnight.
The Under-the-Radar State to Watch
I started out my career as an auto industry analyst. I sat face to face with legendary Chrysler Corp. CEO Lee Iacocca to talk about the rise of automation in his factories.
So I have a lot of fond memories of the place.
However, these days, Michigan and its fabled auto industry don’t make much noise.
Yet with nearly 10 million residents, the Wolverine State is the 10th largest in the nation – and its medical cannabis industry is second to only one.
Approved by Michigan voters in 2008, the state’s medical marijuana program has approved thus far licenses for 29 dispensaries, nine growers, five processors, four testing facilities, and three transport companies.
The state also has an Oct. 31 deadline for about 200 cannabis businesses, mostly dispensaries, to apply for a license or get shut down – many of these operations are currently running under emergency rules.
Just this week, state regulators trying to increase the efficiency and customer service needs of medical cannabis patients launched an online registration and physician certification process.
That’ll allow more patients to renew their registrations, request replacement cards, update their name and address, and withdraw from the program – all while online.
As of May 2018, Michigan had about 269,553 medical cannabis patients – the second highest of all states where it’s legal – behind only California and its 915,845 registered patients.
And with 27.1 registered medical cannabis patients per 1,000 residents, no other state save for tiny Maine (38.4 registered patients per 1,000 residents) has higher per-capita patient numbers.
Further, Michigan saw $633 million in cannabis sales in 2017, according to Forbes, ranking among the top five states for that year, and was the top-ranked medical-only state.
That’s been great news for cannabis investors looking to clean up in Michigan.
Even more exciting, though, is that this unusually large customer base built up in the state will serve as a solid foundation for growing an even larger recreational marketplace, should voters approve Michigan’s ballot measure one week from today.
Billon(s) on the Table
According to the latest polling, Proposal 1 to legalize adult-use recreational cannabis in Michigan is favored 57% to 41%. Approval for the measure is basically unchanged since the Detroit Free Press polled residents in September.
“Even though there are some law-enforcement groups and others that are putting out information against the proposal, it seems to have pretty solid support,” says Bernie Porn, president of Lansing, Mich.-based polling firm EPIC/MRA. “There has always been a perception that there are far too many people in jail for a minimal amount of use and that it prohibits the police from spending time on more serious crimes.”
That’s a common sentiment these days.
Here’s another one you’ve heard me say over and over here.
When laws pass, stocks soar.
Cannabis business owners in the state are certainly banking on it.
Take Michael Elias, CEO of Michigan Pure Med, one of the state’s largest vertically integrate producers.
“Michigan is one of the most exciting states in the country,” in regards to its cannabis industry, Elias recently said. “If you look at it objectively, there’s a patient base of around 345,000 people. That’s unheard of. It is the largest patient registration in the entire country.”
The market potential behind a recreational law could climb as high as $2 billion, he expects.
Another reason for Elias’ optimism is Michigan’s bustling tourism industry, which clocked 120 million visitors in 2016, compared to Colorado’s 82 million visitors for the same period.
Colorado’s cannabis industry is strongly supported by tourists, and Elias expects Michigan’s will be as well.
In fact, he’s already begun preparing to meet demand in a potential inventory shortage spurred by full legalization.
It’s a prudent strategy. Staying ahead of the game is key to realizing the profit potential that’s so evident in this industry.
It’s why you’re going to want to check out the American Cannabis Summit.
In this first-0f-its-kind cannabis investing event we start to show you how – and where – to grab the profit potential in this $10.8 billion sector.
Click here for a private viewing.
You don’t want to wait to make your move until after Nov. 6 – and voters have already made their move.