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One $2 Canadian stock is cashing in on the insane growth in this $50 billion market. Read the full story in this just-released report.
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Canadian cannabis companies are experiencing a boom that isn’t rivaled anywhere else in the world.
During the first half of 2017, Canadian cannabis companies raised more than $1 billion Canadian. That was a 1,700% increase in financings compared with the same period of 2016. And it translates into approximately $790 million USD.
Cam Battley, a member of Cannabis Canada, says that “one of the big advantages that Canadian companies have internationally right now is that we have access to capital that companies in no other country can match.”
One Canadian broker named Eight Capital estimates that the international medical cannabis market could be as big as $180 billion Canadian over the next 15 years.
Due to Canada’s relatively small population, the growth companies in this market are already looking overseas. Many Canadian companies are eying Germany and Australia as prime markets for expansion.
Earlier this year, Germany expanded its medical market. The country now allows the cost of medical cannabis to be covered by the national health insurance.
Due to the patchwork of state laws in the U.S. – and a federal government that classifies cannabis as an illegal narcotic – Canadian companies have a huge edge.
What’s the BEST Canadian marijuana stock? Go here for the full story.
Pot Stock Briefing
Tiny U.S. Stock Buys California Town
American Green (OTC BB: ERBB) plans to purchase the tiny town of Nipton, California for a reported $5 million. The town is on the border with Nevada, and American Green plans turn the town into a marijuana destination.
Meanwhile, the tiny company has only about $19k in cash in the bank, so it’s perplexing to understand how they’ll pay for the purchase. This appears to be yet another PR stunt from an underperforming company.
News media have really hyped up this story, and the stock price has jumped. The company has an extensive amount of convertible debt that can be converted to shares at a 50% discount to the 52-week low share price. Prospective investors should expect considerable dilution in the coming months. This may be a compelling story, but the stock looks like a real mess.
Marijuana ETF Under Pressure
Horizons Medical Life Sciences ETF (TSX: HMMJ) seemed like a good idea when it was launched in April. It was the first ETF to offer diverse exposure to a group of cannabis stocks. It’s attracted $120 million in assets.
The ETF started trading at $10, and is now down about 12% from the initial pricing. The ETF includes many Canadian cannabis stocks. Plus, it owns some big biotech stocks that are working on cannabis-based pharmaceuticals. Some of those biotech stocks have taken a hit, and that’s brought down the entire index.
Instead of buying the ETF, investors may be better off investing in these individual stocks (get my top ideas right here).
Exclusive Research: $2 Pot Stock Set to Soar
Just-released research reveals the details of a tiny Canadian pot stock that could be getting ready to take off.
“Insiders” have already invested $11 million of their own savings. And you have a limited-time chance to get in on the ground floor.
Go here for the full report.
Good Investing,
Ian Wyatt