My recent trip to Denver, America’s marijuana capital, was an eye-opener. That’s because this “Green Silicon Valley” is the picture of capitalism.
Now, I use my spare time to dream up businesses I’d want to open when my home state of Florida legalizes. What would you think about a theme restaurant called “Weed and Feed”?
But if what is going on in Nevada is any example, it might be heavy on the feed … but lacking in weed.
This month, Nevada became the latest state to legalize marijuana. In the first four days of legalized recreational weed, Nevada generated $3 million in sales revenue and roughly $500,000 in tax revenue.
People stood in line in the desert heat for up to three hours to make a purchase.
In fact, legalized marijuana in Nevada is so popular that local dispensaries (as pot shops are called) are running out.
“Marijuana sales already far exceeding the industry’s expectations at the state’s 47 licensed retail marijuana stores.” That’s according to Department of Taxation spokeswoman Stephanie Klapstein.
State of Emergency
The main hang-up is that Nevada decided to throw a bone to alcohol wholesalers. Wholesalers were given exclusive rights to distribute marijuana. That’s because the liquor industry was worried pot sales would cut into profits.
But no wholesalers had been granted licenses to distribute pot. Why? “Most don’t yet meet the requirements that would allow us to license them,” Klapstein said in published reports.
In fact, multiple sources say the alcohol wholesalers have been trying to sabotage marijuana sales in Nevada. Again, because they fear competition.
Now, Nevada’s tax department is calling for emergency regulations to expand the pool of potential distributors. Gov. Brian Sandoval, who originally opposed legalization, has endorsed the move.
The state’s tax commission plans to vote on the emergency measure tomorrow (Thursday). This could end the shortage.
But remember, all marijuana sold in the Silver State must be grown in Nevada. So another shortage could loom around the next bend in the wild road to riches that the state is traveling right now.
The state is on track for $30 million in marijuana sales by the end of the year. And a report from New Frontier and Arcview Market Research projects much more: That Nevada’s annual legal cannabis sales could grow to an estimated $630 million by 2020.
Image credit: New Frontier Data
Since Nevada taxes recreational marijuana at 32%, that could generate nearly $200 million in new tax revenue.
This is all in a state with fewer than 3 million residents. Sure, a lot of sales will go to the 55 million tourists who visit Nevada every year. But other states are taking notice.
Iowa and Utah are now talking about legalization. Utah!
And that’s why I think many marijuana stocks are undervalued. Investors aren’t taking into account the phenomenal growth that we could see as more states legalize. Weed is still illegal at a federal level — that’s going to change, too.
Heck, just wait until President Trump — and Congress — realize one way to get past “unsolvable” budget problems is to legalize a chunk of the drug’s black market.
In fact, the non-partisan Tax Foundation says that the federal government could net $7 billion just from taxing marijuana. And local, state and federal government revenue could hit $28 billion if marijuana were legalized across the country.
That’s just a guesstimate, to be sure. Since marijuana sales outpace every projection, it’s hard to know what the real number would be.
So, will marijuana be legal? Yes. State governments can’t afford to have it otherwise. And as Nevada shows, public demand is definitely on the side of legalization.
Money talks in America. And it’s talking more and more about legalization.
And smart investors will position themselves BEFORE that happens.
All the best,
Sean Brodrick
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I am sharing.
Josh July 22, 2017
So Sean, why did you stop shorty of telling us the “Best 10 marijuana Stocks” to buy ? ? ? ? ?
Typical investment letter blarney . . . . .
You won’t tell your ‘already paid up” subsctibers useful info so we can get positioned in M-Stocks, without dreaming up another Invest-letter to sell us on . . . . .
Josh
Sean Brodrick July 24, 2017
Sorry you feel that way, Josh. But you really should sign up for our video webinar this week.
best,
Sean
Richard July 21, 2017
canada Marijuana company FFRMF is this one of them?
Sharon Monteforte July 19, 2017
I’ve been wanting to invest in marijuana but need guidance. Are you going to suggest a pot stock for all of us?
Sharon – OK
Sean Brodrick July 19, 2017
Hi, Sharon. Recommendations are coming. To make sure you get them, contact our VIP Customer Service team at (800) 291-8545. All the best, Sean.
Neal July 18, 2017
Attn: Sean Brodrick
I recently joined Marijuana Millionaire and since joining my portfolio is up almost $9,000 in just a few days. What’s great about this industry is that you are investing at the ground floor. Stocks are cheap and have the potential to significantly increase over the years. So, I am in this for the long term.
I wanted to mention that my son in law is a grower in Humboldt county, CA. (there are over 10,000 growers in Humboldt alone) He knows everyone and their brother that deals with Cannabis in some degree. There are rumors on the street that two or three pharmaceutical companies are investing heavily into an opiate substitute using cannabis. It is rumored that some of the results have been very promising. I will try and get the names of these companies for you to research. If one of these companies develops an opiate substitute and it is approved by the FDA, the stock of that company if publicly traded will absolutely go through the roof. The number one abused drug today in the U.S. is percocet or vicodin. Cannabis does not have the addictive potential that opiates do and is far, far less harder on the body than opiates. But it has similar pain relieving qualities. In any event, while you do research into this industry and it’s companies, I would ask if that company is researching opiate substitutes using cannabis. Thought I would pass on this information.
Sean Brodrick July 19, 2017
Thanks, Neal. Both for the compliments and the heads-up. Please get me that information when you have it. And I’m glad your Marijuana Millionaire positions are doing so well. All the best, Sean
Sonny July 17, 2017
Indeed demand will continue to grow each and every year
Philip July 14, 2017
Yes, all stock markets should be on Marijuana and we’ll all be happy investors able to retire.
H. Craig Bradley July 13, 2017
HIGH COUNTRY NUTTINESS
As a former Forest Ranger who lived and worked in Colorado in the early 1980’s, I have gained a perspective on the people of the state through experience over the years (decades). Back in the 1970’s ( a comparable period to today as far as in-migration), I actually observed a middle-aged man standing in line at the local post office in Arvada, Colorado wearing a Tinfoil Hat, and there were thunderclouds visible in the afternoon, as usual. Yes, college students and others smoked dubies back then too, just illegally. Now, we just have more of both: Tinfoil Hats and Marijuana. Its “up in smoke”, as they say.
Today, I would not touch Colorado with a ten foot pole. Its now a one party liberal Democratic state and not comparable to what it once was to me anyway. In contrast, neighboring Utah is in better shape financially and therefore does not need Marijuana legalization to fund more bloated govt. payrolls and pensions. Utah is solvent and well managed financially and I predict will be the very last to legalize marijuana, even for Medical applications. Utah is the Sensible State.
Sean Brodrick July 17, 2017
Sorry to break it to you, Mr. Bradley. But Utah could be legal in 2018, IF they can get it on the ballot. http://fox13now.com/2017/05/25/utah-medical-marijuana-ballot-initiative-to-go-for-the-whole-plant/ Polling statewide shows support for legalization. It appears that politicians are the ones holding it back. Sincerely, Sean
Old Jack July 13, 2017
Better yet, just distribute pot free to every citizen then they won’t give a damn about the country going broke nor anything else. Pot is VERY dangerous as it take away all ambition and renders the heavy user a non productive vegetable without a care in the world. If you don’t believe me study the ’60’s era “hippy” and their children. Just another example of man not learning from history.
Geos July 14, 2017
Very dangerous? The evidence for that is what? I look at the ignorant, shot gun totin’, bible thumin’ alcoholic hillbillies and I see a lot there too but I don’t think alcohol should be prohibited because the gov’t shouldn’t stick its big fat nose into people’s private lives and personal decisions. Some famous unambitious cannabis users: Arnold Schwarzenegger
Stephen King
Montel Williams
Ted Turner
Michael Bloomberg
Michael Phelps
Rick Steves
Sir Richard Branson
http://coed.com/2009/02/06/the-10-most-successful-potheads-on-the-planet-cool-enough-to-admit-it/
Sean Brodrick July 17, 2017
Another reader posted this link of people who admit they use marijuana and accomplish quite a bit.
Arnold Schwarzenegger
Stephen King
Montel Williams
Ted Turner
Michael Bloomberg
Michael Phelps
Rick Steves
Sir Richard Branson
http://coed.com/2009/02/06/the-10-most-successful-potheads-on-the-planet-cool-enough-to-admit-it/
Other than that, your argument is bulletproof.
MJG July 13, 2017
http://www.lung.org/stop-smoking/smoking-facts/marijuana-and-lung-health.html?referrer=https://duckduckgo.com/
Interesting reading from the American Lung Association.
Sean Brodrick July 17, 2017
That’s a good point, “MUG.” Smoke of any kind damages your lungs, and the tar it carries can cause more damage. That’s why many medical marijuana users choose “edibles.” But it’s a personal choice everyone has to make. All the best, Sean
Barbara Handly July 12, 2017
This is totally immoral! Greed and corruption at all levels of government is outrageous! Tax dollars for legal sales of an addictive, dangerous drug is immoral. What ever happened to morals and ethics? You can thank Bill Clinton for signing away the Dodd – Frank Act and being responsible for the US National debt. Now, Trump did it again. When if ever will America return to the good of the people?
Sean Brodrick July 12, 2017
You need to calm down, Barbara. Marijuana isn’t addictive. And you managed to tick off both Clinton and Trump fans in one letter. That’s over-achievement. Sincerely, Sean.
Ohio Bob July 12, 2017
Am adamantly opposed to recreational weed. Seems too many non thinking politicians and others, don’t look at the unintended consequences. Or maybe they do. One consequence, graduating to heroin for example, then the next step overdosing and perhaps death.
Come on America, start thinking.
Sean Brodrick July 12, 2017
Your opposition to recreational weed is faith-based, not fact-based. There is no scientific evidence linking marijuana and heroin. However — and here’s the interesting part — there’s a strong link between prescription drug use and heroin use. Here’s a link for you: https://www.addictionhope.com/heroin/the-link-between-prescription-drugs-and-heroin/
If you don’t want to click through, consider this: Someone gets a painkiller prescription from their doctor. The prescription runs out, but not before this person is addicted. They want that fix. And the easiest way for some to get that fix is to use heroin off the street.
So it seems to me you’re angry at the wrong things. Have a good day anyway. Sean.
tom marino July 12, 2017
what pot stocks are recommended
Sean Brodrick July 13, 2017
Hi, Tom. Sign up and find out. . Call our customer care reps at (800) 291-8545 and they can make sure you receive the report.
robert w July 13, 2017
Just plain dumb.
Where cannabis has been legalized, deaths from opioid overdoses are already down.
Opioids are deadly. Cannabis is not.
What’s that about Clinton and Dodd-Frank and Bill Clinton? Just unrelated nuts.
Incidentally, the liquor industry was probably behind the outlaw of pot.
Now that they have been awarded a piece of the action, and pot has been made very expensive, they are happy to have it legal.
Sean Brodrick July 13, 2017
Exactly right, Robert!
Robert Schubring July 12, 2017
A curious fact: When King James VI of Scotland inherited his mother’s claim to the throne of neighboring England, (she was Henry VIII’s sister, and got the title because Henry VIII died without children), he visited the place, liked the warmer climate, and decided to stay there, becoming James I of England. James got the notion to do the English a favor, so he hired a group of linguists and paid them to translate the Bible into English.
Obviously his team of linguists didn’t include a rabbi.
I conclude this, because in Jewish services since the time of Moses, there’s been a substance used, called the Holy Anointing Oil. This oil is made by cooking various herbs in olive oil, by a recipe specified in the Book of Exodus.
One of the herbs in the Holy Anointing Oil is “kanah bohsem”.
Every rabbi recognizes the Latin word “cannabis”, as the attempt of Jewish historian Josephus to teach the Roman conquerors who invaded Israel in 79 AD and took most of the population into bondage, what this Israeli herb was.
Cannabis was known among the Israelites for it’s medicinal properties. The Rabbinate swore that Almighty God ordered Moses to use the stuff medicinally.
So how did it happen, that the many Protestant denominations that populate the rural South of the US, prohibit on religious grounds, an herbal product that their own God told their own Prophet Moses, to use?
The answer, it turns out, is that King James’ translators goofed up their work.
They encountered the Hebrew name “Kanah bohsem”, and didn’t know what it meant.
Then compounded their error, by not asking a single Jewish rabbi, if he knew what the name meant.
Instead, they guessed at the answer. Their guess was a different herb, Calamus, which French people put in perfume.
And every small Christian denomination that failed to check the King James Bible against the original Hebrew text, went on believing that James’ translation was faithful and accurate. They simply didn’t realize that the medicinal plant Cannabis is described in the Bible, and that it’s use as a medicine has been approved by the highest Authority.
So, three centuries after King James ruled England and botched the Bible’s translation, FDR got a law passed, prohibiting cannabis use in the US, based on a racist belief that African-Americans lost their self-control when on “narcotics”, and nobody objected. We still have the racist fool’s image stamped on our ten-cent coins.
This is what we get, by taking politicians at their word.
Sean Brodrick July 12, 2017
Thanks, Robert. That’s a fascinating story. Best, Sean.
Joy July 15, 2017
Actually, Henry VIII had three children; Edward VI, who reigned for approximately five years, and Queen Mary I, who reigned for approximately five years. You might know anther child, Queen Elizabeth the First, she reigned for approximately 45 years. She was one of the greatest leaders England has ever had. When she passed away, childless, the throne went to her cousin, James 1, who was Mary Queen of Scotland’s son, and the great-great grandson son of Henry VIII, or first cousin, twice removed of Elizabeth. So, there you go, a mini history lesson
doreen Gow July 12, 2017
Studies show that this drug is linked to mental conditions ;, certainly the people I knew who smoked it were far from go-ahead, so not a way I feel that is moral to make money.
Sean Brodrick July 12, 2017
It’s no worse than alcohol. No one’s forcing you to buy it or use it. Or invest in it, for that matter. Sincerely, Sean Brodrick
Dave July 14, 2017
Studies show that weed can bring out existing mental conditions, absolutely no evidence to support the cause of mental conditions.