I’ve been talking about legal cannabis here for years as an unstoppable industry, with my broad investment motto being: when laws pass, stocks soar.
Now it looks like the folks at BofA Securities, a division of Bank of America Corp. (NYSE:BAC), are finally catching on, as they’ve started to cover the industry in depth. Let me be the first to say: Welcome!
It also looks like in their initial coverage, they’re predicting that as the U.S. steps closer to federal legalization, we’re going to see more Canada-based firms trying to snatch up American ones, while the price is still cheaper than what it would be in a post-federal legalization world.
Of course, seeing legal cannabis as a global market is also something I’ve been talking about for a while, so I heartily agree here. And of course, the proof is in the pudding. Take Canopy Growth Corp.’s (NYSE:CGC) recent $3.4 billion agreement to purchase U.S.-based Acreage Holdings Inc. (OTC:ACRGF), which can be finalized when the U.S. federally legalizes.
The Bank of America analyst also believes the combined market share of the 14 largest Canadian cultivators could exceed that nation’s domestic market consumption needs by 2021, making international strategies all the more important for firms in this increasingly competitive space.
Again, I’ve also been focused on the international potential in this industry for years. The Bank of America analysts expect the global market will reach $166 billion, with the U.S. taking up about a third of that total, while Canada could account for about 3%. In all, cannabis is set to disrupt $2.6 trillion in revenue from existing industries like health and wellness to alcohol.
While more and more firms like Canopy consolidate as they steady themselves for the world stage, you’re going to start seeming the cream rise to the top, and the rest fall out. Simply put, as in any other industry, there are going to be winners and losers.
Knowing which firms to choose is of paramount importance in order to maximize your profit potential with cannabis stocks.
That’s where the team at the National Institute for Cannabis Investors (NICI) comes into play. See, I’m on their board, and I’ve seen their one-of-a-kind stock database – what we like to call “The Vault“ – up close and personal.
This highly secured database of cannabis companies is easily the most comprehensive on the planet. It includes every publicly traded cannabis company, a number of firms planning on going public soon, and a lot of the most promising new startups.
The best part? All of these companies have gone through NICI’s extensive vetting process, and been given a rating on our simple 1 – 5 scale.
It’s just the sort of window into the cannabis industry that you need to make the smart plays… and give you the potential to make more money, faster.
Cheers and good investing,
Michael A. Robinson