Recreational marijuana grabs plenty of headlines. And why shouldn’t it? It’s an industry that will soon be worth hundreds of billions, and let’s face it, there’s still an element of novelty and shock value there.
But make no mistake: Medical marijuana is a growing industry too, and it’s a big one. Global Market Insights predicts the medical cannabis market in the United States alone will be worth more than $8 billion by 2024 – a figure that, in my view, is conservative.
Markets large and… not quite so large, like like Florida and Nebraska, are actively looking to expand their medical marijuana industries to serve more people, in more ways, and in more places.
And as these new laws are being proposed and passed – and the markets expand – we can expect to see some select cannabis stocks rally.
These companies sport leadership with an uncommon vision, who see the undeniable upside in serving both market segments – recreational and medical.
It’s a win-win strategy for them – and a huge boost for investors’ bottom lines.
This Chemical Is Like Solid Gold for Cannabis Companies
These days, many strains of medical marijuana have high levels of cannabidiol (CBD), a cannabinoid prized for its non-intoxicating, yet anti-inflammatory and pain-relieving properties.
Experts at the Brightfield Group estimate the medical market alone will hit $22 billion in the next three years. And with the passage of the new Farm Bill, more firms will incorporate CBD into more value-added goods, like pills, creams, and other beauty and health products.
STAKE YOUR CLAIM: Three pot stocks in particular could be poised for rare, wild gains of up to 1,000%. Click here to learn how you could see a $2 million “pot payday”…
While medical cannabis may have taken a backseat in the media when compared to the spread of recreational marijuana, legislators and other elected officials on both sides of the aisle certainly haven’t slowed down their quest to pass – or reform – different medical marijuana laws.
They’re seeing the demand from their constituents. Fully 83% of Iraq and Afghanistan military veterans polled in a recent survey, for instance, support medical cannabis.
In Florida, GOP Governor Ron DeSantis asked the legislature last week to reverse the state’s current prohibition of smokable medical cannabis.
Lawmakers in deep-red Nebraska, too, are looking to introduce a medical marijuana bill that would allow qualifying patients to possess, consume, cultivate, and purchase medical marijuana from licensed dispensaries.
While so much of the focus here is on the United States and Canada, European countries, too, are taking giant steps toward establishing medical marijuana schemes for patients.
And we’ll see some very familiar, very profitable names take the reins as this trend catches on.
In fact, inside five years, the continent could become the largest medical marijuana market on Earth.
By next year, Europe’s top medical cannabis markets could double, according to a report released by the Prohibition Partners at the Davos World Economic Forum. The European Cannabis Report predicts the market will generate over 58 billion euros in the next decade.
Currently, medical cannabis is legal in 14 European countries, while reforms are being discussed daily for other countries to follow. The medical market in Germany, Italy, and the Netherlands is expected to double this year, to serve 225,000 patients.
The United Kingdom, Portugal, and Malta have also introduced bills that allow cannabis use for a variety of ailments. With 14 more countries in Europe with legal medical marijuana, the market is rapidly expanding.
And where there’s major market growth like this, there’s ample opportunity for companies to tap these make massive new markets. And Canadian companies already have a leg up on the competition thanks to full legalization in that country.
How to Profit on This Big, Green Global Trend
Canopy Growth Corp. (NYSE: CGC), for example, is ready to go through the exceptional lengths that come with medical marijuana licensing. “Canopy has a strong supply of CBD, a significant channel presence, the IP to drive the CBD industry forward to the benefit of consumers, and the balance sheet needed to act now,” Co-CEO Bruce Linton explained.
The firm just got a license to cultivate hemp – a CBD-heavy cousin of the marijuana plant – in the state of New York.
Tilray Inc. (NASDAQ: TLRY) is another company to watch in the medical space. In November, the firm boldly predicted cannabis legalization would arrive in the United States as early as 2021 – and then began preparing for that optimistic date. By January, it had signed an official letter of intent to acquire CBD isolate from LiveWell Canada Inc. (OTC: LXLLF), a company that sources hemp from both sides of the U.S.-Canada border. It also inked an agreement with Authentic Brands Group, known for brands like Juicy Couture and Nine West. ABG signed up to help Tilray with branding and marketing, including several CBD- and hemp-based products.
Marijuana legalization is rapidly changing from a sporadic trend to a widespread medical solution.
And it’s minting a brand-new generation of millionaires who’ve taken the choice to “go all in” and get in on the right stocks at the right time.
Now, the folks over at the National Institute of Cannabis Investors (NICI), where I serve and advise as a board member, have produced some incredible, must-read research on these cannabis plays. Go over here to check out the details…
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.
Source: Money Morning