POT ALERT: Can You Afford to Miss These Gains?

Original Link | DailyReckoning

It’s about time some good news came out of Las Vegas following the tragic shooting that rocked the city last month.

People head to Las Vegas to unwind. To let their hair down. To have a few too many. One sicko isn’t going to change that.

For pot investors specifically, some great news has been coming out of Las Vegas in the past weeks.

Pot’s Gone Parabolic

Nevada’s Department of Taxation recently released sales numbers for pot from back in July, when recreational weed became legal. According to the stats compiled by Marijuana Business Daily, business is booming:

Marijana sales chart

Nevada’s pot sales essentially doubled the numbers of other states, with more than $27 million in sales. Those numbers come in spite of the fact that Nevada faced huge supply shortages due to issues with distribution rules.

The numbers are probably underestimating the long-term weed market there.

Even more telling, Nevada managed to pull off this huge sales number with just 53 stores selling recreational marijuana — less than any other state, save for Washington, during its first month of legal sales.

That’s quite an accomplishment.

 

According to a dispensary owner interviewed by Marijuana Business Daily, retailers are seeing growth rates between 2% and 5% a month. That’s a massive annual rate of growth — and it bodes well for any Nevada-based companies.

Since pot is still federally illegal, it cannot be transferred across state lines. That means the licensed grow operations in a state are the sole legal suppliers to the cannabis users of that state. Which is why Nevada’s booming market is so promising for companies that operate there.

These are exciting times for the cannabis industry. As I’ve said over and over again, we have a front-row seat to all the action — we get to participate in the upside.

Meanwhile, I’ll be in Las Vegas over the next week, meeting with companies that have exposure to Nevada markets and collecting research on many more.

Expect to hear a full report soon.

Now on to big news from our neighbor to the north, Canada.

Laughing in the Face of a Crackdown

Pot companies in Canada just got notice — if you do business in the U.S., you’re going to get delisted.

It’s crazy!

TMX Group Ltd., the parent company of the Toronto Stock Exchange and TSX Venture Exchange, intends to contact all pot companies listed on its exchanges to determine whether they run afoul of U.S. federal law. Marijuana continues to win legalization in more states, but it’s still classified as a Schedule I drug in the U.S. on the federal level.

That means Canadian marijuana companies conducting business in the U.S. are violating their TSX listing obligations, even if they’re compliant with state laws.

That’s a very bad for Canadian stocks that have operations stateside.

But what do our Canadian pot companies think about the latest news?

Most could care less!

The majority of Canadian pot companies don’t have exposure to the U.S. markets. Instead, they do have exposure to markets like Germany or Uruguay — markets where regulated cannabis is 100% legal.

It’s still unclear what other Canadian firms with U.S. operations are going to do.

Sell off their American subsidiaries? Split themselves up? Get delisted?

It looks like they have until the end of the year to decide. In the meantime companies with access to other international markets will continue to thrive.

We’re still on the precipice of something huge here.

But this regulatory update from Canada is a reminder that not all pot plays are created equal. Now more than ever, deep research is paying off.

We’ll continue to put it to work for us as we head into the final stretch of 2017.

Big gains are ahead!

For Tomorrow’s Trends Today,

Ray Blanco

Ray Blanco

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