Legal and Illegal Cannabis Markets Are Confusing Investors

in #bitcoin6 years ago

Today, millions of investors across the world are making the same mistake. And I hope you aren’t one of them…

You see, many people are hungry to get a foothold in the emerging recreational cannabis market. But they’re not sure what to look for. So investors are piling into some of the worst deals I’ve seen since the dot-com boom.

I’m seeing pot stock valuations that make tech stocks look cheap… compensation packages for small-cap executives that would make Wall Street bankers blush… and malinvestment on such a scale it’d make even a Soviet-era commissar hang his head in shame.

Worst of all, I’m seeing hard-working Americans pour billions of dollars into terrible investments—believing that the next round of millionaire-making opportunities will come from recreational pot stocks.

The ugly truth is: They won’t…

The competition in the recreational pot industry will be as fierce as it is in the airline industry. There will be a cutthroat race to the bottom on prices—and it’ll bankrupt 90% of the current players in the marijuana space.

That’s not to say all cannabis companies aren’t worth investing in. But you need to invest in the right ones.

That’s why I’ve been focusing on a handful working on products in the legal cannabis space. And today, I’ll show you why you need to focus your investment dollars there, too…

Cannabis Confusion

The biggest mistake pot-stock investors make is not distinguishing between legal and illegal cannabis at the federal level.

If you’ve been following me, then you know the cannabis plant creates many types of products.

But most people are familiar with just one: marijuana (also known as pot or weed). It contains tetrahydrocannabinol, or THC. It’s the psychoactive compound that makes people feel “high.”

Now, the federal government lists marijuana as a Schedule I drug. So it gets the same treatment as heroin, LSD, and ecstasy. And because it’s illegal, most big banks won’t touch financing for marijuana deals.

Another type, though, is hemp. It produces a chemical called cannabidiol, or CBD. And unlike THC, CBD doesn’t make you feel intoxicated.

And in December 2018, President Trump signed a farming bill legalizing industrial hemp as a crop. It lifted restrictions on the sale, transport, and possession of hemp-derived products.

Yet there’s a big mistake most investors are making: They’re focusing solely on weed companies. And while pot is medically legal in 33 states (and recreationally legal in 11), it’s still illegal at the federal level.

Now, I expect the feds to change their stance in the future. But in the meantime, our research indicates that hemp-based products will earn most of the profits from the legal cannabis boom…

Life-Saving Cannabinoids

CBD isn’t the only non-intoxicating cannabis compound. Two others have shown potential to treat numerous ailments: tetrahydrocannabivarin (THCV) and cannabigerol (CBG).

Right now, CBD just has the biggest growth potential.

You see, Brightfield Group forecasts CBD sales to grow from $591 million this year to $22 billion by 2022. And Merrill Lynch projects the CBD industry to directly disrupt existing markets worth around $2.6 trillion.

Millions of people already use CBD to alleviate joint pain, arthritis, epilepsy, anxiety, and many other ailments.

In fact, a January 2019 Consumer Reports survey found that over 25% of Americans say they’ve tried CBD. And one out of seven of those people said they use it every day.

But THCV and CBG are showing great promise, too…

Despite the $72 billion U.S. market for weight loss products, over 300,000 people per year die due to complications from obesity, according to the Centers for Disease Control and Prevention. It’s the second leading cause of preventable death behind tobacco. As an appetite suppressant, THCV could save millions of lives.

How much would you pay for a THCV product that stops you from feeling hungry without getting you high? In my never-ending quest to manage my weight, I know I’d pay a lot.

Plus, some studies show that when used in conjunction with traditional treatments, certain cannabinoids make cancer cells more receptive to medication. One study cited by the National Cancer Institute even found that “cannabinoids appear to kill tumor cells.” And animal studies indicate that under certain circumstances, anti-inflammatory CBG can shrink cancer cells.

Last year, people spent more than $130 billion on cancer treatments. So you can see the future market potential of cannabinoids in medicine is huge…

The Mother Lode

Look, recreational pot will end up much like the modern-day alcohol and tobacco industries: A handful of well-financed survivors will thrive off a stable of big brand names.

But since pot is still illegal at the federal level, it’ll be years before these opportunities come to fruition. So it’s nearly impossible to guess which pot stocks will win big at this stage.

Meanwhile, you run the risk of missing out on profiting from the mother lode: non-THC cannabinoids.

That’s why I’ve spent the last three months neck-deep in the cannabinoid market.

I’ve been flying all over the world… talking to the most important CEOs in the cannabis space… and trudging through the jungles of Colombia and the grow rooms of Canada… all to find the world’s best cannabinoid investments.

And next Wednesday, June 26 at 8 p.m. ET, I’ll explain just how big this CBD opportunity is during a free special event I’m calling the New Sweetheart Deal Market.

I’ll tell you about a unique way to play this trend. It’s a secret that Wall Street has used for years to make millions. In fact, I’ve been using it for years to explode my own wealth higher.

And now, I’m kicking down the door to bring these deals to Main Street. So come join me. Click here to reserve your seat.

Let the Game Come to You!

Teeka Tiwari
Editor, The Palm Beach Daily


Sincerely yours Palm Beach Reseach Group

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