The True “Green Revolution”

This post The True “Green Revolution” appeared first on Daily Reckoning.

An increasing number of states that have legalized medical-use marijuana, adult-use marijuana, or some combination of the two. But many in the mainstream media, and on Wall Street, continue to believe investing in pot is about getting high.

It’s time to set the record straight because investing in cannabis has absolutely nothing to do with getting high!

Today I’ll be discussing my top three reasons why every investor should allocate at least a small portion of their investable assets to the cannabis industry.

The reasons I believe you should invest in the green revolution are as follows:

  1. The U.S. cannabis market is massive
  1. There are many known catalysts with unknown timelines (a good thing!)
  1. Positive sentiment will lead to a U.S. infrastructure buildout

So without further ado, let me show you why cannabis is where you should put your money…

According to the research firm Euromonitor – the American cannabis market will grow from an estimated $5.4 billion in 2015 to an impressive $20 billion by next year.

And Euromonitor’s optimistic views aren’t out of line with the views of other research firms.

Market research firm Cowen has gone on record with its view that the American market could reach $75 billion by 2030.

Now, while early investors will no doubt make enormous fortunes if the cannabis industry grows to $75 billion over 11 years, I believe the market could grow even larger.

You see, most industry observers are only considering the uses of cannabis that we know of today. But like the internet in the mid-1990s, it’s just too soon to know how the cannabis industry will mature and ultimately unfold.

It’s even possible that we haven’t even identified the most profitable use for cannabis.

While cannabis users may love the plant for its healing, therapeutic, or relaxing effects, investors should recognize it as an untapped gold mine!

The bottom line is we’re in the very early days of a new industry that has tens of millions of potential customers in the U.S. alone, and billions-of-dollars in sales just waiting to be scooped up.

While anyone who pays even a little attention to the stock market knows about the green revolution unfolding in the U.S, I’m laser-focused on identifying investment opportunities. That way I can share them with my readers before they’re highlighted in The Wall Street Journal or on CNBC.

You see, to maximize your investment returns, you must be adequately invested before the story is shared with the investing masses on the front-page of every newspaper in America. That means investors need to identify industry catalysts, and then put their money to work in select companies before those catalysts are made public.

Look, we know with near 100% certainty that the U.S. government will eventually decriminalize the use of cannabis. And we know that banking reform will liberalize existing rules against cannabis.

Now, when banking reform is passed, the floodgates will burst open with banks wanting to lend cannabis companies money, and institutional investors wishing to snap up stock as quickly as possible (more on this below).

The bottom line is the catalysts are coming.

Investors that wait for the dust to clear, legislation to pass, and CNBC to report on the enormous stakes that significant institutions have taken in the United States’ multistate cannabis operators will be forced to pay a sky-high price for shares.

By focusing on the most successful U.S. cannabis companies and investing ahead of the crowd that is waiting for the legislative all-clear signal, you will be pre-positioned when the masses are only beginning to invest.

When it comes to Wall Street, sentiment is enough to move markets. And while it may seem like there’s a world of difference between Wall Street and the Washington, D.C., beltway, there isn’t. Politicians, like Wall Street analysts, are heavily influenced by public sentiment.

In April, a new Hill-HarrisX poll was released showing that 84% of Americans now support some form of marijuana legalization. It doesn’t take a high-ranking political operative to figure out that when 84% of voters support something, you can bet politicians are paying attention.

The dramatic rise in public opinion surrounding cannabis also explains why virtually every serious Democratic candidate for the 2020 elections supports marijuana legalization. Many Republicans are also on board.

Yes, investing in cannabis is going to resemble the wild west over the next 1-2 years. But it’s that lack of certainty and regulation that actually provides marijuana investors with massive profit potential.

Below, I show you why you should invest in the “true” Green Revolution. And I’m not talking about green energy. Read on.

Invest in the True Green Revolution

Twenty years ago, the only people making money from marijuana were stone-cold criminals.

These guys smuggled narcotics across a national border, made deals with cartels and sold drugs on the street. And every dime they made had to be laundered through phony businesses to keep the heat off their backs.

Today, I can make quick and easy money from marijuana, sitting at my computer in my pajamas. And it’s all 100% legal. No drug mules, no police — just a click of a button.

Now, before you get the wrong idea, I’m not talking about selling pot, using it or even living in one of the growing number of pot-friendly states. You can do this from anywhere in the U.S. All you need is a laptop and access to a trading account. I’m talking about the growing sector of the stock market that’s dedicated to legal pot.

I’m talking about medical marijuana companies, legal growers and even gardening companies who are getting in on the marijuana-growing boom.

Yes, I believe cannabis — specifically U.S.-focused cannabis companies — are set to explode higher in 2019 and beyond. I don’t know if you were investing in the mid-1990s but I was and it was a magical time.

Companies like Netscape, AltaVista, CMGI, and WebMD captured the imaginations of investors, and Wall Street rewarded these companies and others like them with multi-billion-dollar valuations.

Now, there’s no denying that the internet revolution was a once-in-a-lifetime event. And when technology stocks came crashing to the ground in mid-2000, I assumed that was it. I’d never see an investment opportunity that massive ever again.

But I was wrong.

You see, we are facing the end of cannabis prohibition in the United States. And like the internet revolution, this too is a once-in-a-lifetime investment event.

Unfortunately, many investors hear the word marijuana and immediately shut down. They’ve grown up listening to how horrible cannabis is, and viewing it as a dangerous drug with no medical value. They can’t handle the idea of investing in a product that is both federally illegal and responsible for landing thousands of Americans in prison.

Simply put, many on Wall Street will miss out on this investment opportunity because they’re either incapable or unwilling to look beyond today’s federal cannabis policy which is tragically out of step with popular opinion and position their portfolio for where federal policy will be in the near future.

Now, I want you to try and wrap your head around a few numbers.

Legal U.S. recreational and medical cannabis generated $10.4 billion in 2018. However, that only represents sales made in state-legal cannabis enterprises. If we account for the estimated black market demand, that figure jumps up to an astounding number somewhere between $50 billion and $55 billion!

With bipartisan federal and state-level political support for cannabis legalization, public opinion that is already heavily in favor of reform, and support from the banking, alcohol and tobacco, professional sports, and banking industries — there’s no question that full-scale federal legalization is right around the corner.

Now, it’s no secret that the biggest challenge facing the legal U.S. cannabis industry today is access to banking services.

You see, because cannabis remains illegal under the Federal Controlled Substances Act, banks and credit unions are understandably scared to do business with or extend credit and banking services to state-licensed cannabis companies.

And without access to banking services, state-licensed cannabis companies are forced to operate on a cash-only basis.

While cannabis is illegal at the federal level, any bank providing traditional banking services to a legal cannabis company could be accused of money laundering and aiding and abetting federally-illegal operations.

The takeaway is that without a cannabis-related banking solution at the federal level, most U.S. cannabis companies will be forced to remain predominantly cash-only operations.

But that’s changing.

Senator Jeff Merkely (D-OR) and Rep. Ed Perlmutter (D-CO) introduced the Secure and Fair Enforcement (SAFE) Banking Act in May 2017 to both legitimize the burgeoning cannabis industry, and to establish a framework of banking rules for cannabis companies operating under state-legal guidelines.

Unfortunately, the 2017 version of the SAFE Banking Act failed to see the light of a committee hearing.

But on February 13, 2018, the House Financial Services’ Subcommittee on Consumer Protection and Financial Institutions held the first ever congressional hearing on the issue of cannabis banking.

And an underpublicized Congressional subcommittee held a hearing this March on providing safe harbor via the SAFE Banking Act of 2019 for banks wanting to work with legal cannabis businesses in the U.S.

A vote on the SAFE Banking Act of 2019 could happen by the end of June. The fact that it managed to get this critical piece of legislation in front of the House Financial Services subcommittee is a HUGE positive for the cannabis industry.

And with public opinion blowing heavily toward legalization at the federal level, our elected leaders in Congress finally realize they must come out from the shadows and do their job!

Just the fact that legislation is finally being discussed is a momentous step in the right direction.

Here’s what Rep. Denny Heck (D-WA) said following the hearing:

“We listened to hours of testimony today about the dangerous position we put store owners and employees in by forcing them to do all of their business in cash. We can fix this. We don’t have to force them to operate in a way that makes it difficult to secure and track their funds. Regardless of our views of marijuana use, the voters have decided in states all over this country that they want recreational and medicinal markets. To continue to do nothing to protect public safety would be negligence.”

I’ll continue to monitor any developments with the SAFE Banking Act. I’m very excited about any future developments in the legalization of cannabis at the federal level. Again, there could be a vote by the end of June.

Abraham Lincoln famously said,

“We the people are the rightful masters of both Congress and the courts.”

And I believe the day is finally coming when the views of most Americans will be heard, and the cannabis industry will be permitted to emerge from the shadows and dark alleyways and operate in full government-sponsored daylight.

The pieces are in place for cannabis to emerge as the next great growth sector. And the fact that marijuana is still illegal at the Federal level in the U.S. provides traders with a significant catalyst to invest around.

America’s budding pot market is the BEST way for an average American to get rich right now.

There is a so much momentum building, from the individual states to the halls of Washington, D.C.

Right now, most mainstream investors don’t know how to read the signals. But it won’t be long before they catch on — which is why I recommend you move on this opportunity right now.

Don’t miss out!

Regards,

James Altucher
for The Daily Reckoning

The post The True “Green Revolution” appeared first on Daily Reckoning.

Never Buy Cannabis Shares Until You Read This


April 26, 2019
Dudley Pierce Baker
Founder - Editor
http://CommonStockWarrants.com

 

The Cannabis/Marijuana sector has become one of the most popular investment choices among investors over the last few years.

Knowing that investors are always looking for ways to increase their gains I wanted to bring to your attention the fact that many of the companies have stock warrants trading as well.

In fact there are 33 cannabis/marijuana companies which have stock warrants trading and a few of the companies have more than one warrant trading. One of the companies with warrants trading is Aurora Cannabis, TSX:ACB. The warrants trade under ACB.WT. In my power point presentation, I showcase these warrants which could have made you 1,733% in 3 months. The numbers don't lie, so be sure to see my presentation for details.

Most of these warrants are trading on the Toronto Venture Exchange (TSXV) or the Canadian Stock Exchange (CSE).

If you are not familiar with stock warrants, this might be a wonderful time for a brief learning experience. You probably know something about call options, if so, warrants and options are very similar. However, the biggest advantage for stock warrants is the longer lives. Some warrants are issued giving the holder of the stock warrants, the right, but not the obligation, to acquire the shares for up to 5 years.

Commonly warrants will have a life of 24 to 36 months but when you have the opportunity to buy warrants with a 5 year life you really need to pay attention.

I maintain a database of all stock warrants trading in the United States and Canada which includes all industries and sectors, cannabis/marijuana, resource companies (gold, silver, uranium, etc.), pharmaceuticals, biotechnology, gaming and many other areas.

Monster gains of 1,000%, 2,000% and more have been made on stock warrants by savvy investors for years.

I have a recent Power Point Presentation on Stock Warrants which includes several examples of gains and opportunities which is a good starting point for you.

If you find this presentation interesting, I would invite you to become a subscriber giving you access to my databases and the vast array of opportunities available.

If you are interested in the precious metals area, I believe this will become one of the hottest sectors starting very soon. I look for gold to climb to possibly $1500 by years end and more to come next year. Outrageous gains of 1,000's% will be made by those getting involved early, I mean right now. Several long term warrants (over 2 years of remaining life) are trading on gold companies, a silver company, and a uranium, but new warrants can be listed at any time as more companies due a financing or an initial public offering.

I am confident which ever investment sector you prefer you will find some interesting companies with warrants trading.

 

 

Get Out of Cannabis and Crypto and Move Into Gold and Silver

Summary

1)2018 has seen so much volatility in the equity and bond markets after going straight up since 2009.

2)"Everything" bubble is simply the result of record low negative real rates manipulated by Central Bankers to prevent deflation by all means possible.

3)The ending of QE combined with increasingly inflationary concerns has sparked the US to start raising rates.

4)Unwinding of easy money policies could be quite painful.

5)Stay away from margin and company's with any debt on their books.

One of the most overlooked stories in 2018 has been the volatility in equity and bond markets.  The "everything" bubble is simply the result of record low negative real rates manipulated by Central Bankers to prevent deflation by all means possible.  In 2008, the US banks were on the verge of collapse, the Fed since that time has tried every effort to protect the economy with easy money policies.

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The result since 2008 has been remarkably effective.  Unemployment in the USA is at record lows only ten years following the government bailouts of banks and the auto sector.  The real estate foreclosure crisis has been completely turned around.

We must not forget that for every action there is a reaction.  The unwinding of easy money policies could be quite painful.  The ending of QE combined with increasingly inflationary concerns has sparked the US to start raising rates.  Bond yields are now the highest in many years spiking higher taking the investment world by storm.  Real interest rate hikes are happening for the first time in many years.  The Fed has started warning investors about rising risks most notably recently with Deutsche Bank.

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First hit is now Italy who has always lived the sweet life heavily indebted.  Next will be Greece or maybe Spain or Portugal and the PIIGS as interest rates increase.  Don't worry about Spain, Greece and Italy they will be bailed out by the EU again with another lifeline.  Instead, be concerned for many young people living in debt.  They may have jobs now with record low unemployment.  Nevertheless, in many cities such as NYC, LA and Miami the average teacher can't afford a place to live.

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As rates rise again to historic levels, I expect to see many more delinquencies.  The recent concerns at Deutsche Bank may be just the beginning.

I remember how fast these bank panics happen.  First it started with Bear Sterns then Lehman and then AIG.  All during that time the pundits in the mainstream media said there was nothing to worry about and that housing and the markets were booming forever and ever.

A similar phenomenon could be happening right now.  We have so many warning signs of another crash. The biggest one is the major increase in bond yields in 2018.  Not only have rates moved higher but it jumped quickly the most in many years.

I expect the recent warning signs from the Fed Reserve on Deutsche Bank to be just the beginning as debtors who became over leveraged to low rates pay the price now as rates rise quickly.  I don't believe the Fed is done raising rates until there is a severe market downturn.

There is no doubt that highly leveraged borrowers at record low interest rates will come into trouble.  This begs the question how many of the banks still have derivative exposure like AIG and Lehman.

Remember statistically we have up to 50% corrections or more once every 10 years or so.  I know you don't like to hear it but this is the second longest bull market since the 1920's which led up to a major crash and the Great Depression.  We are in the midst of trade wars not seen in 100 year since the Smoot Hawley Era which many blame as one of the accelerants in deepening the Great Depression's devastating effects.

How does one protect oneself?  Stay away from margin and company's with any debt on their books.  You might want to look at hedging against the financials, real estate and bonds (TBT).  Stick to small cap stories with no debt over large caps with debt and look to see if they have real assets preferably in the form of some sort of commodity in the ground.  The mining sector (GDX) which has been under attack by the activists and unloved for years may actually be one of the best places especially gold (GDX), silver (SIL) and copper miners (COPX).  The energy (XLE) and agriculture (DBA) sector may also be safe areas which over time could outperform during a potential bear market panic.

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Conditions point to a bear market and possible flash crash this summer.  Please prepare for real estate and stock market valuation to come back to earth as rates move higher.

What is deeply discounted right now and could soar again if we see double digit inflation like in the 1970's?  The junior miners could be the best place especially right now the beaten down exploration stocks which have been brutally neglected by the major producers for years.  I recently went to a mining conference in NYC put on by 121 Mining and met with some of the top CEO's and Fund Managers.

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One of my really smart professional subscribers Art pointed out Shanquan Li.  Mr. Li manages the Oppenheimer Gold and Specialty Minerals $OGPSX.  Before entering the investment sector he was a director of a think tank for the Chinese Government and then joined Brown Brothers Harriman before joining Oppenheimer where he has been for 22 years managing the precious metals fund since 1997 building it to just under $1 billion under management.  He has significantly outperformed his peers recently with picks such as Kirkland Lake $KL, Endeavour $EDV and Newmont $NEM.  The fund pays a yield of 2.99% and has four stars from Morningstar.  Over the past year Li's $OGPSX fund has stayed in positive territory while most mining funds have been down.

He mentioned to me he doesn't buy stocks until they reach a minimum market cap but he does like to follow them and start doing research at an early stage.  He comes to these shows because he realizes in his experience as a portfolio manager that big miners start out little and grow.  He is smart, humble and constantly looking as he does not want to miss some big discoveries in the junior mining sector.  This may be an actively managed fund that I may look into.  Check out this recent interview with Oppenheimer Portfolio Manager Shanquan Li by clicking here...

At the conference I had dozens of meetings with juniors.  One of the things that impacted me most was when the CEO's showed up and mentioned to me that they were recently buying their own shares.  This is a very bullish testament to me as an investor and it was nice to see two of the CEO's telling me that they are putting heavy amounts of their own net worth in recently as they believe their own stock has value and should rise.  I'm still doing due diligence to confirm what they are telling me is correct but Liberty Gold $LGD and Victoria Gold $VIT may have had some recent insider buying.  If you find insider report please email it to me.

There were a few select juniors showing some great momentum at the conference based on prior results and good discoveries this included Teranga $TGZ, Fireweed Zinc $FWZ, Corvus $KOR and Silvercrest $SIL.

Many of the companies came to the conference already well positioned financially recently raising money such as GoviEx Uranium $GXU.  Some recently announced financings like Alexco $AXU which seems to be a top takeout target for high grade silver companies.

Interestingly, many investors are still unaware of the recent investment by Eric Sprott into what could be the next Novo which went up ten fold last year.  Sprott just made a $10 million investment in a small company which is just starting to pick up.  The CEO was just interviewed and was one of the first I've seen on this rising junior in the Pilbara in Western Australia.

Also incredibly I spoke to some of the top lithium experts on the internet and they were not aware of a discovery that I was one of the first in the industry to highlight back in November last year which could be huge.  Since that time they raised $2.5 mil CAD and are advancing permitting and metallurgy.  The stock has gone from a quarter to 1+ and it could be just a start as there have recently been some major advancements with the permitting.

Make sure to stay tuned as I expect a positive turn in the mining market to be imminent.  Be careful of the overbought cannabis and cryptocurrency sector which has attracted a lot of speculative capital and tons of fraudsters.  See the recent article entitled, "Buyer Beware: Hundreds of Bitcoin Wannabes Show Hallmarks of Fraud" or "SEC Tells Investors Potential For Fraud in Companies Tied to Cannabis Industry".  Please be careful...caveat emptor!  If you have gains in cannabis or crypto, it might be prudent to rotate into cheap mining stocks.

Disclosure:  Assume Author (Jeb Handwerger) owns shares in featured companies and that I want to sell them for a profit.  Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.