By Matt McCallSep 07, 2019
Call it the secret ingredient that compels a stock to move higher. It’s like an unstoppable magnetic force that pulls stocks up.
It really shouldn’t be a secret. It’s discussed in every company analysis and every Finance 101 class. It’s available for everyone to see for every publicly traded company.
And yet, investors look right past it, especially in early stage companies and industries when the stocks and numbers tend to be more volatile.
This not-so-secret, secret ingredient is sales. Or revenue, as it’s called on the balance sheet.
The more a company brings in, the more upside potential for a stock.
Here’s the deal: Marijuana companies are right now hitting the investing sweet spot where they are starting to generate significant revenue – yet stock prices are still down.
That makes NOW the time to buy.
When we look back on 2019, I think we’ll clearly see it was one of the best buying opportunities ever in marijuana stocks. Prices are down even as legalization spreads and sales jump. Eye-popping long-term growth is in the cards, but investors aren’t focused there yet.
This is the chance to buy big growth at low prices.
History shows the massive profits you can earn. Take a look at both Netflix (NFLX) and Amazon (AMZN) and some of the mouth-watering opportunities along their growth paths.
Now let’s look at a few marijuana stocks so you can see how they are in that same early stage sweet spot.
Acreage Holdings (ACRGF) is a big name in the cannabis industry. Its board includes three of the most connected people on the planet: former U.S. Speaker of the House John Boehner, former Massachusetts Governor and current U.S. presidential candidate William Weld, and former Prime Minister of Canada Brian Mulroney.
The company is also central to perhaps the blockbuster marijuana story of the year (so far). Canopy Growth (CGC), the biggest cannabis company on the planet, agreed to buy Acreage for $3.4 billion when marijuana becomes legal in the U.S. It was practically a flashing neon sign that U.S. legalization is coming sooner than most expect.
Still, the stock has been cut in half this year despite expectations for revenue to soar more than 3,800%, from $21.1 million in 2018 to $838 million by the end of 2021.
Remember Netflix earlier? If that doesn’t look like a buying opportunity, I don’t know what does.
Harvest Health & Recreation (HRVSF) is a lesser-known but equally dramatic example. It has the most retail licenses to open marijuana dispensaries in the U.S., and it has aspirations to be the biggest cannabis company in the world. That’s bold, but the company also has strong management, a solid cash position, and a path to profitability thanks to growing revenue.
Here again, we have a stock down 50% since April – at a time of exploding revenues… as in from $47 million in 2018 to $1.3 billion by 2022. That 2,665% growth if executed on can be bought for pennies on the dollar.
I could show you plenty more similar charts, but I think you get the point. Marijuana stocks are cheap, especially considering the explosive revenue growth that’s anticipated from the biggest players.
Last year, legal marijuana sales in the United States hit $10.4 billion, which is nearly 100% growth over the three-year period going back to 2015. This year, sales should grow nearly 24% to $12.9 billion.
Now just imagine when legal weed is opened up to the entire $21 trillion U.S. economy. We’re talking exponential growth potential in a single stroke.
Marijuana is a massive trend still in its early stages, with the U.S. waiting in the wings to become the biggest market in the world. Any time governments open a huge new market like legal marijuana, investors can win very big. The key is to own the right investments before that happens, and now is the perfect time to start.
P.S. The opportunity in legal weed is much like the opportunity internet stocks offered in 1994… or that Bitcoin offered in 2015.
Especially right now, when many attractive U.S. stocks are both undervalued and still in “penny stock” territory.
If you’re looking for the next Netflix or Amazon, this is where you’ll find it.
You just want to be VERY choosy about which ones you buy.
I use strict guidelines to pick penny stocks — and I tell you all about them in my recent presentation.
When I used my five-step evaluation process on the marijuana market, I identified four stocks that are worth buying now.
During my presentation, you’ll have the opportunity to secure a free copy of “America’s Top 4 Marijuana Moonshot Stocks”… I’ll even give you a fifth bonus name just for fun.
I don’t think it’s a stretch to assume that the next wave of marijuana wealth could be explosive. Click here to learn now to get started and to see for yourself what is truly at stake for investors who get in BEFORE America legalizes nationally.
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt talks about the huge opportunities in sports betting and the future of healthcare. He has one stock name to share with you that’s a leader in telemedicine. Then, he discusses September. It’s traditionally a bad month for stocks, but this year there is a lot to look forward to.
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