Last week I jetted off to Denver to check out that city’s burgeoning cannabis capitalism.
That’s right. Cannabis capitalism.
Oh sure, some people are high as kites in the Mile High City. But what intrigued me most are those people and companies working to make a fortune on marijuana.
I sat down with some very interesting companies. I’ll be telling subscribers about them soon enough.
Execs at one of those companies invited me to a party. A huge party featuring booths from more than 100 Colorado-based cannabis companies.
You might be surprised to learn there was no marijuana use inside the party. That was restricted to buses outside. And they wafted smoke out their windows like high-horsepower fog machines.
I stayed inside – talking to weed-preneurs. It’s been a long time since I felt the good vibrations of capitalism like those in that room.
Sure, there were a few growers, and plenty of cannabis dispensary reps. But that’s so small a part of the big picture. As the old saying goes: If you want to get rich in the gold rush, sell picks and shovels.
So I talked to people and companies in the fields of law, real estate, advertising, sales, marketing, irrigation, lighting, distribution, software, insurance, security. And much more.
I’m starting to think these ancillary businesses will eclipse the cannabis market itself.
I talked to …
⊗ A CEO who makes a hobby of building and selling successful businesses. Now he’s pivoted to marijuana with a marketing company.
- ⊗ A 24-year-old who already built and sold one consulting company. Now he’s building another company, which he says could be “The Facebook of Marijuana.”
- ⊗ The head baker of a bakery that dishes up delectable edibles. Some are just good ol’ cookies and brownies, like Mom would make. Some contain 10 milligrams of THC. Business is booming!
Yeah, the profit potential is enormous.
Head West, Young Entrepreneur
But as much money as there is in Denver – as much as cannabis fuels the beating heart of capitalism in the Mile High City – the buzz at the party was about California’s impending legalization of recreational marijuana. That starts in January 2018.
Plenty of the companies I talked to in Denver had plans to either expand into California or clone their companies in the Golden State.
Why? Because California, if it was measured as its own country, would have an economy bigger than France.
A widely read white paper, “The Economic Impacts of Marijuana Sales in the State of California,” was published by the consulting firm ICF International last year.
It estimates that legal sales of marijuana in California could support between 81,000 and 103,000 total jobs, and between $8.4 billion and $10.6 billion in total industrial activity.
How is that possible? You take all the business activity on the black market … and you put it in the “green” market.
By some estimates, Los Angeles’s medical marijuana market alone is already close to $1 billion. That’s about the same as Colorado’s entire market.
Jobs! Jobs! Jobs!
Cannabis is a dynamic marketplace. It’s also a regulated marketplace. And that creates jobs both private and public.
Heck, the cannabis industry already employs between 165,000 and 230,000 people. Take a look at this chart …
America has more people working in weed than as dental hygienists. And this is without recreational legalization in California … yet. This is also without recreational legalization in Florida or Texas.
More importantly, this is with the federal government doing its darndest to cut weed off at the roots.
As for the public side, marijuana generated Colorado more tax revenue in 2015 than alcohol.
So yeah, riches are possible. Fortunes can be made.
These are the early days of the marijuana industry. Dang, weed is still outlawed by the federal government. That leaves pot entrepreneurs starving for institutional capital.
Major stock exchanges won’t accept listings for businesses that Washington deems illegal. Banks shy away from making loans to someone who could be raided by the feds.
So, some U.S. companies are heading north, listing their stocks on the Canadian exchanges. Meanwhile, Canadian entrepreneurs have told me they’re mobilizing cash to invest in the U.S., because this market is so fragmented.
So what happens when the U.S. government legalizes marijuana?
I’d say the resulting move in marijuana stocks could be massive. And that’s how YOU can make your fortune. By getting in now.
Just be very selective in what you buy. There’s plenty of drek out there, mixed in with the buds.
Best wishes,
Sean Brodrick
Ron December 2, 2017
I understand that there is a company that is a REIT that is purchasing property to lease to Cannibus company’s to help control their leasing costs and pay investors dividends. Does anyone know which company that is and it’s symbol?
Geos July 5, 2017
Do you think this prediction will be as prescient as your “$2000. gold sooner rather than later” 8 years ago”?
Larry Hopkins July 5, 2017
American brokers don’t handle Canadian companies unless they are listed on the American over the counter market.
RL July 2, 2017
Sean, What about the new wave of impossible food companies. Lab grown meat and fish. Healthier and
better for the planet.
Sean Brodrick July 2, 2017
I’m focusing on the profit opportunities in cannabis right now, thanks.
steve lowe June 29, 2017
do you have any recommendation on what stock to purchase in regards to the new wave of pot companies?
Sean Brodrick June 30, 2017
I DO have recommendations. Coming very soon. Call our VIP customer service reps at (800) 291-8545 to find out more.
Eric Dale June 29, 2017
So, will you be making any recommendations on marijuana companies/firms/equities….. you have been writing so much about it recently?!?!? And usually end your articles with some variation of “be careful / selective … in what you buy…”
Sean Brodrick June 30, 2017
Sorry, I haven’t put my recommendations out yet. They’re coming very soon, though. Call our VIP customer service reps at (800) 291-8545, to make sure you don’t miss those recos.
roger sanders June 29, 2017
Thanks for following up on marijuana info, especially mentioning ETFs. In 10 years it will be as easy as buying an ice cream cone (and better for you). But by then the money will have been made.
I guess I missed a good US marijuana ETF so far. I found one on the Canadian Exchange but can’t figure out how to trade there. Please advise and/or suggest a US ETF.
Sean Brodrick June 30, 2017
Check with your broker. You should be able to trade Canadian stocks. If not, you might need a new broker. But that’s a decision you’ll have to make on your own.
Rod June 29, 2017
Trolling around on another website, I found GWPH, Anyone confirm?
Mike Alonzi June 28, 2017
Hey Mike,
Are you going to make any Marijuana stock recommendations ?
I’ve seen a lot of hype in this field but I don’t trust con artists, you I trust .
rick June 28, 2017
please don’t tell us to be selective, tell us what to buy
Ohio Bob June 28, 2017
Can’t support the use of recreational marijuana, as I firmly believe it is an inducement that leads to more dangerous perhaps deadly drugs. Disappointing and distressing to me, that you are promoting this business. How did you think this thru, or did you?
Geos July 5, 2017
What you firmly believe is firmly at odds with the facts. President Nixons Shafer commission recommended decriminalizing pot. Anti tumor properties of cannabis have been know since at least 1974. Many studies have come out since then confirming many medicinal uses. http://www.csdp.org/news/news/nixon.htm Seems the paranoid right is always looking for something to fear and repress.
Francisco Carpio June 28, 2017
Where can I get the names of the companies involved in the marijuana industry, both in the USA and Canada??? Thanks in advance. Francisco
Sean Brodrick June 28, 2017
Hi, Francisco. Call our VIP Customer service reps at (800) 291-8545. They’ll get you set up. Thanks.
Barry Gruver June 28, 2017
Sean and Mike, it’s deeply distressing to me that you are pushing investing in marijuana and marijuana-related businesses so strongly. Marijuana is an entry drug which encourages addiction to even more powerful and destructive drugs. We will see the societal and health costs of this dangerous product rise in years to come.
It is socially irresponsible to push this product the way you’re doing. I wish you’d stop!
Barry Gruver
Sean Brodrick June 28, 2017
I’m sorry you’re distressed, Barry. Here’s where I’m coming from: Study after study has shown that marijuana is no worse than alcohol. It’s certainly less bad than opiods, and it can replace opiods in many chronic pain patients. Cannabinoids have been shown to ease symptoms of otherwise untreatable diseases. States need revenue. We want to stop the drug cartels from getting revenue. And a drug conviction can ruin an otherwise upstanding person’s life. For these reasons and more, I’m for legalization.
Geos June 28, 2017
Oh bullshit. Where’s your righteous outrage when it comes to alcohol and tobacco that kill hundreds of thousands every year? What sanctimonious hypocrites.
Swirick June 28, 2017
Barry, for fifty years 30 million people have been using 45 million pounds of pot per year. This has fueled the drug cartels until now. The legal market in the USA while taxing the 45 million pounds and generating income has also wiped out the drug cartels who are leaving the borders for lack of business. According to a Department of Justice report published in 1996, few if any addicts of all kinds did not start their addictive activities until drinking alcohol therefore “making alcohol and tobacco the true gateway drug”. A twenty year study of 2000 chronic cannabis users also revealed that they had less incidence of cancer, diabetes, therefor striking down your Jeffery Sessions theory of rising health and social costs. Every one of the 30 medical marijuana states have shown up to 30% less opioid use. If you actually do a minimum of research you will realize spending billions of tax dollars to arrest almost a million tokers a year does not compute. Sean and Mike are just noting the inevitable which we should be very grateful for.
GARRETT June 28, 2017
So when will you tell subscribers which stocks to buy?
Sean Brodrick June 28, 2017
Very soon. Call our VIP customer service reps at (800) 291-8545, and they’ll get you set up.
irene mccallister June 28, 2017
Cannabis does not make you high if in right combination of THC & CBD and take in right dose for your condition.There a many people who have been cured of cancers and many other diseases. Chemo and surgery have only temporarily killed tumors but destroyed good cells.
Sean Brodrick June 28, 2017
I do not believe some of the more “out there” health claims made by cannabis proponents. However, studies have shown cannabis helps people with all sorts of illnesses.