American cannabis markets get a lot of attention from investors, and deservedly so. As far as legal markets go, the various U.S. states constitute the largest in the world, and they’ll continue to for years.
After all, the legal marijuana market in California alone is far bigger than the even the vast Canadian market will ever be. Multi-state operators (MSOs) are learning how to build operations and brands across the United States, despite patchwork legalization.
These ingenious pioneers will define the American cannabis market of tomorrow; they’ll make millionaires of U.S. cannabis investors, too.
I’m talking market dominance here.
Still… no one can afford to count out the Canadian-licensed producers. They have something that American MSOs don’t.
Investors who own both U.S. and Canadian marijuana stocks will have an unbeatable advantage – one that will be reflected in outsized profits…
Canada Boasts One Clear Advantage
Canada’s market might not ever be as big as the United States, but make no mistake: It is big. The Canadian Imperial Bank of Commerce (NYSE: CM) estimates it will hit a not-to-be-sneezed-at $6.8 billion Canadian dollars (US$5.05 billion) by 2020.
And of course, cannabis is clearly, unambiguously legal in the G7 nation – unlike the United States.
THREE STOCKS: Any one of these cannabis companies could potentially deliver a 1,000% windfall. Click here to learn more…
Because of that legal clarity in Canada, Canadian cannabis firms have the leeway to build a portfolio of global assets.
And they are using this legal head start and the big balance sheets flush with cash that they have built to acquire assets throughout Europe.
The licenses, cultivation facilities, and distribution they’re buying represent substantial beachheads to launch their global cannabis ambitions. And these markets have the potential to be every bit as big as the United States.
In 2018, 6% of Europeans used cannabis – whether legally or not – which makes for a market of about 44 million consumers. All told, that added up to about $68 billion in sales.
Now, that number doesn’t even account for the massive growth we expect in sales of CBD products. When you factor that in, you’ve got an easy double over recreational marijuana use.
With rapid adoption of medical marijuana, revenue will virtually have to grow at triple-digit rates every year for several years until we’re looking at a market with sales measured in the hundreds of billions of dollars.
So, for the handful of Canadian companies with the foresight and financial wherewithal to build a European footprint, they stand to dominate the global cannabis market in the years ahead.
These Firms Are Buying into Huge European Markets
I recently wrote to you about Canopy Growth Corp. (NYSE: CGC). With its $4 billion war chest, courtesy of Constellation Brands Inc. (NYSE: STZ), it has acquired assets in the United Kingdom, Denmark, Germany, Italy, Spain, the Czech Republic, and Poland.
Aurora Cannabis Inc. (NYSE: ACB) has every bit as extensive a reach, but it’s also in Lithuania, Luxembourg, Malta, and Portugal.
LEGAL WAVE: Barriers to marijuana could be tumbling in Mexico and Thailand, but it’s here in the U.S. where legalization could spark a “Green Rush” in certain stocks. Click here to learn about three of them…
Aphria Inc. (NYSE: APHA) isn’t as flush with cash, with around $70 million, but it has penetrated Germany, Italy, Denmark, and Malta. And Tilray Inc. (NASDAQ: TLRY) has found its way into Germany, the UK, the Czech Republic, Croatia, and Cyprus with just shy of $300 million to work on even more acquisitions.
That’s going to add up to incredible profits…
When Canadian Cannabis Firms Go Worldwide, Monster Profits Follow
The cannabis sector is in the process of scaling up.
Global scale means priority access to $344 billion in traditional marijuana consumption, plus a few hundred billion in new cannabis markets. And with a legal market growing at over 80% per year, the market values of all cannabis companies will speed past $1 trillion before you know it.
And the wealth created for investors owning scalable cannabis stocks now will set them and their families up for generations. Getting in on cannabis now is like pulling up a chair right next to the founders.
After all, so much value creation happens in the early stages of a company’s growth that you want to secure your seat before the big money moves in and pushes stock prices through the roof.
America’s Green Gold Rush Is Just Getting Started – Claim Your Stake Now
At this very moment, big investment firms and members of the Fortune 500 are building enormous war chests.
They’re preparing to push billions upon billions of dollars into the cannabis market – and they could strike at any moment. So right here – right now – you have a once-in-a-lifetime opportunity to beat them to the punch and stake your claim.
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.To get full access to all Money Morning content, click here.
Disclaimer: © 2019 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.