Oakland, Calif. – Now that I’m on my way home from the Fourth Annual Cannabis Business Summit & Expo, there’s one statistic I just can’t stop thinking about.
And that’s a big deal.
You see, people throw around a ton of numbers at these conferences. But their true values can be incredibly opaque.
Whether the data you pick up on the Expo floor is from an entrepreneur, a lobbyist, a politician, an investment analyst, a researcher, a salesperson, or even a “brand representative,” you’ve got to do some work with it.
You’ve got to put it under the microscope, turn it around in your head, and figure out what it truly means. While most of the “tips” you get are just noise, many are interesting enough to share with friends.
But only a very, very few are truly valuable.
I’m talking about a number or statistic that flips a switch in your brain – and points your way toward future profits in your investment portfolio.
And the one number that stuck with me is this – 25%.
One of the great things about conferences – like the Marijuana Business Conference & Expo my team just attended – are the under-the-radar trends you pick up on.
The mainstream media is hardly talking about them. And the more specialized, niche coverage is busy with topics perceived as “bigger” – at least in the immediate term.
It’s the kind of valuable and credible information hanging out there on the fringes where millions are made.
And it’s why I’m personally attending the Cannabis Business Summit & Expo in Oakland, Calif., starting this upcoming Monday.
For example, at last month’s Marijuana Business Conference, a panel discussion on emerging legal marijuana markets may have flown under the radar with some inexperienced investors… but it jumped off the page to my team.
Panelist Michael Bronstein, of the law firm Bronstein & Weaver, proclaimed that New Jersey could become the most lucrative state recreational market east of the Rocky Mountains within two years. And he came equipped with plenty of data and anecdotes to back his claim up.
It makes sense.
First, New Jersey has a first-mover advantage, as none of its immediate neighbors will beat it to recreational legalization.
Plus, NJ borders two of five most populated cities in the country, New York and Philadelphia…it’s got a huge population all on its own… and it is home to communities hit hard by the decline of manufacturing looking for emerging industries like legal cannabis to bring in jobs and tax revenue.
In an effort to get tipped off on some similar profit-promising trends before I head to the Cannabis Business Summit, I spoke with a top executive of the group that sponsors that event.
I’ve repeatedly argued that legal marijuana – which will be a $24 billion industry by 2025 – is an unstoppable freight train, and that there’s hardly a thing Sessions can do about it. I’ve said it here – and to thousands of additional people who tuned in to my Pot Stock Summit last month.
I’ve come one step short of shouting it from the rooftops.
That’s no idle talk, either. As of right now, we’ve got 100% confirmation that Sessions has been totally beaten in his quest to roll back the pot prohibition clock to 1968.
Here’s how we got it: We went right into the “belly of the beast.”
When one of the largest marijuana business conferences in the country came to the Washington, D.C., area last month, my team jumped at the chance to head down I-95 to get the inside dirt.
We found that people in-the-know – politicians, former high-level government staffers, deep-pocketed investors, and even bankers – know that Sessions has already lost.
More importantly, my team talked directly with a fleet of A-list insiders who confirmed it. None was more calming than guy who literally wrote the book on federal marijuana guidance.
In a perfect world, we’d all have access to the same information, and stocks would price themselves quickly and accurately, and there’d be no “mystery” or uncertainty in taking a position.
It’s a pretty thought.
Only there is one catch – there wouldn’t be any massive opportunities like the one I’m going to show you, either.
You see, as a thrifty man, I’m always hunting for a good deal.
But the best, most satisfying, ones are always those that effortlessly fall into your lap.
And that’s exactly the kind of play that we’re going to look at.
What I’m going to show you is the next best thing to getting something for nothing.
It’s not unlike what used to happen in brick-and-mortar stores back in the day, before barcodes and RFID tags, when a high school kid would go around with a sticker gun, sticking prices on items, and make a mistake.
It might not have been so great for the employee, but it was always a sweet feeling for the consumer to get an unexpected deal.
Well, the exact same thing is happening right now in one of the best pharma companies on the market…
And it’s a “sweet deal” investors won’t want to miss out on…
None of the problems in the beleaguered retail industry hits closer to home than that of Sears Holding Corp. (Nasdaq: SHLD).
Like me, you probably had a dad or uncle that swore by Sears for, if nothing else, its tools for various home-repair projects. Craftsman was a dominant tool brand for much of its 90 years – and Sears was the only game in town to get them for a time.
The tools lasted seemingly forever and, when there was a rare problem, the warranties were fantastic and easy to use. Several generations of consumers simply refused to buy tools anywhere else.
Sears is defining case study for problems the retail space. Founded 131 years ago, Sears itself admits it’s close to closing its doors after losing $10 billion over the last decade.
To me, when Sears sold the Craftsman brand in January to Stanley Black & Decker (NYSE: SWK), they might as well have played “Taps” and raised the white flag.
Granted, Sears’ situation is far from unique. More than 8,600 brick-and-mortar stores will close their doors this year, according to Credit Suisse.
That’s a higher rate than the record year of 2008 – the height of the financial crisis. News of closures seems to arrive daily now.
Recent examples include Bebe StoresInc. (Nasdaq: BEBE), which plans to close its 168 outlets and sell solely online, and Urban OutfittersInc. (Nasdaq: URBN), which said the very future of the retail sector isin doubt.
But you never hear about two retailers closing stores – TheHome Depot Co. (NYSE: HD) and Lowe’s Cos. (NYSE: LOW).
They’re riding the strength of the $700 billion global home services market.
Today, I want to tell you about a tech firm that made a key buyout in this bulletproof sector – and why the move could put money in your pocket.
In the late 1980s, while working as a banking analyst, I actually got up-close and personal with Carl Reichardt, who was CEO of Wells Fargo & Co. (NYSE: WFC) at the time.
And something he shared with me in his spacious San Francisco office has stayed with me ever since.
I asked Reichardt if Wells Fargo’s focus on home and middle-market loans might be considered boring when other banks were chasing more exotic investments with higher yields.
He looked me straight in the eyes and said, “If plain vanilla means making a lot of money, then color me plain vanilla.”
I bring this up because I’ve spotted a dental-technology firm that investors might at first consider ho-hum – but that’s soared 80% in the past year. That’s five times the gains of the S&P 500 during the same period.
Yes, investing in a dental company may sound dull – or maybe even painful – but this is actually a profit-producing tech superstar.