The cannabis industry is seeing stock prices pull back recently. In fact, ALL the leading cannabis stocks are in correction territory.
But that’s OK. It’s pretty great, actually. This gives us an opportunity to load up — on the cheap — for the next big rally.
And we know that rally is coming …
After all, ArcView Market Research, along with BDS Analytics, forecasts that the legal marijuana market is going to grow at a 28% compound annual growth rate through 2022. Globally, the CAGR is 26%.
If that’s not fast enough for you, the CBD market is growing faster. According to the same sources, the U.S. sales of cannabis and hemp-derived CBD products will ramp up to $20 billion by 2024. That’s compound annual growth of 49% between 2018 and 2024!
So when stocks in the industry pull back, it’s a gift. The ETFMG Alternative Harvest ETF (NYSE: MJ) is down 27.7% from its September 2018 highs. Many leading cannabis-leveraged stocks are down even more.
Gift, gift, GIFT!
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And that’s why, when I travel around the country learning about cannabis and speaking at conferences about how to make a fortune in marijuana stocks, I interview many, MANY cannabis-leveraged stocks.
Some of them are great. Like these two videos from the road to cannabis profits I shared with you last week. Here are two more examples …
Dixie Brands (OTC Pink: DXBRF)
Dixie Brands is on the Pink Sheets and trading under $1 a share. It has a market cap of under $100 million. While small, it checks all my boxes.
Why? Because Dixie is consumer products company developing foods and drinks in the cannabis market. The company has built a portfolio of brands focusing on the three markets: human THC, human CBD, and pets.
Dixie operates in five states, including the biggies — California, Colorado and Nevada. It will expand into eight to 10 more this year. It does this through licensing agreements and partnerships with other companies that give Dixie income while it manages the product.
What’s more, Dixie Brands is making huge inroads in the U.S., Canada (in October, when the law changes) and Latin America, starting in Mexico. Its international partnerships include one with Auxly Cannabis Group (OTCQX: CBWTF), which is licensed to sell Dixie-branded products in Mexico and Canada.
While I was at the Benzinga Cannabis Capital Conference in Toronto recently, I interviewed Trip McDermott, V.P. of Corporate Development for Dixie Brands.
|Direct link: https://youtu.be/aAd41DR3CzA|
The company recently reported Q1 earnings. Revenues rose a whopping 136.2% year-over-year, and 40% from Q4.
Sure, it’s not making money yet. It’s losing money because it is putting the pedal to the metal to expand as fast as possible.
This year, it plans to expand into three to five additional U.S. states as well as increase penetration in existing states, in particular California. It also wants to enter the Canadian market.
So, it has lots of room to grow, and it is establishing brands when other cannabis companies are still figuring out distribution channels. Yeah, I think Dixie Brands is going places.
Emerald Health Therapeutics (OTCQX: EMHTF)
While at the Las Vegas MoneyShow, I talked to Allan Rewak, V.P. of Communications and Stakeholder Relations for Emerald Health Therapeutics. This company, based in Canada, has a market cap of $412 million.
It is a seed-to-sale company. But it’s so much more. Watch the video and you’ll see what I mean …
|Direct link: https://youtu.be/fF7OYMwg-fc|
Emerald Health Therapeutics reported earnings at the end of last month. Revenues grew to C$2.6 million, up 602.7% year-over-year. This company is losing money, too, but its loss is getting smaller.
It is expanding rapidly, including rolling out a non-cannabis line of natural health products (Endo) for the endocannabinoid system. That’s a smart move. I keep talking about how the commoditization of cannabis is a risk to the financial health of marijuana growers. They have to diversify into alternate businesses if they’re going to thrive.
Anyway, those are two stocks I think COULD do well. When the time is right, I may recommend them to my Marijuana Millionaire Portfolio subscribers.
Because as I said earlier, the North American cannabis market is going to expand at a CAGR of 28%. These stocks are pulling back now — but no market goes in a straight line. They’re just coiling up for their next big move. A move that could be as extraordinary as it is explosive.
If you’re doing this on your own, do plenty of research.