Why 2020 could be the year of the cannabis stock

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The Motley Fool

Dear Savvy Investor,

When we look back in 20 years, I think 2020 is going to be remembered for something very specific: the Year of the Cannabis Investor.

Okay, it'll probably have a catchier name by then. But I stand by my prediction that 2020 is going to be a watershed year for the cannabis industry...

...and by extension, the investors who saw it coming.

Frankly, I don't care about cannabis itself... but I sure do care about massive opportunities for forward-thinking investors... which is EXACTLY what I see here.

Financial experts from all over the world agree: a marijuana boom is coming.

To the tune of an estimated $50 billion.

Here's what I'm talking about:

In the last year, North America has seen incredible developments in marijuana legalization - developments that would have seemed unthinkable 10 years ago!

  • Delaware, Georgia, Illinois, Hawaii and New Mexico all passed cannabis legislation in 2019
  • 78% of U.S. states now have some form of decriminalized or legalized cannabis
  • SAFE Banking Act (allowing cannabis businesses to use banking services) passed on September 25
  • Arizona Iced Tea to begin sell cannabis drinks and gummies

And back in December, one of the largest tobacco companies in the world announced a 45% stake in the Canadian marijuana producer Cronos Group, Inc. Heck, even tobacco companies can see the writing on the wall!

Now, why am I taking time out of your day to tell you about this?

Because I believe these three events are part of a bigger story... the unprecedented boom in the cannabis market coming our way.

And with every U.S. state that inches closer to full legalization, the potential cannabis market grows more and more attractive.

Members of Congress have already announced their intention to make cannabis legalization a top priority. Here's one Representative on his vision for 2020:

"Marijuana will be legal at the federal level, and states allowed to responsibly regulate its use."

Now, there's no guarantee the "Blueprint to Legalize Marijuana" will be fully implemented. But it's hard to deny the snowball effect of both industry developments and legislature decisions.

Oh, and if you think I'm exaggerating that snowball effect? Consider this: Tilray (one of the largest cannabis companies) saw its stock price rise 31% the day after the midterm elections.

And since some experts have projected the American industry to skyrocket to as much as $50 billion by 2026, I think it's time for investors to start paying attention.

But until recently, it's also an industry that we've stayed on the fence about. It's a relatively new field... untested... unproven.

And while The Motley Fool analysts love being on the cutting-edge of new investing trends...

...we've been quiet on this growing marijuana industry for a while.

Until now.

Because here at The Motley Fool, we think we've found a backdoor play into this fast-growing market.

And that company - which now has the opportunity to rake in profits from the $7 billion Canadian cannabis industry AND potentially the $50 billion US cannabis industry - is no stranger to us.

Why? Because we've actually recommended this company before... before cannabis investing was on anyone's radar! And take a look at how it's done since we recommended it to our members in July 2016:

  • 1,340% returns since
  • 86% sales growth in last quarter alone
  • Estimated 98% of addressable market left to conquer

This Canadian powerhouse has locked in key partnerships with behemoths like Facebook, Amazon, and now the Ontario government.

And even with all that, the company's CEO declared that he thinks they're only 2-3% into what this company could eventually become.

We here at The Motley Fool are convinced we're only in the VERY early days of this company's trajectory.

Which means there could still be boatloads more profit to be had for in-the-know investors who are prepared to take action.

Now, I don't like to brag... but here at The Motley Fool, we've had a pretty good track record of picking trends before they get big. Take a look at a few of the companies we picked to dominate their field:

  • Netflix, up 14,393%
  • Amazon, up 12,258%
  • Bookings Holdings, up 8,295%
  • Walt Disney, up 7,845%

If you'd invested $1,000 in each of those companies when we recommended them in Stock Advisor, you'd be sitting on $431,922 right now.

Which brings me back to this latest find.

This company's future doesn't hinge on marijuana. If all forms of THC are banned forever in the United States, we think this company still has an incredible field of opportunity.

Heck, that's why we recommended it in the first place!

But now that there's an estimated $50 billion industry emerging from the woodwork, their prospects are positively mouth-watering - and we think you'll regret not getting invested now.

Because with the rapid changes that could occur in the cannabis industry during 2020, there's the potential for even more capitalization for this small company. And if you're not invested before then, you may come to regret it.

Forget penny pot stocks.

Forget untried, inexperienced cannabis farmers.

THIS is the company we think you should have in your portfolio if you want to position yourself wisely for the coming marijuana boom.

And even though this company has had unprecedented success so far... and they've made a history-defining deal with the Canadian government... far fewer investors than you might expect are taking advantage of this VERY rare moment.

We've put together a thorough report on the one stock we think forward-thinking investors need to have in your portfolio to capitalize on the coming changes in the marijuana industry.

Best of all, this report is FREE to you when you sign up for Stock Advisor today.

Simply click below to learn about the one stock we think you need to consider for your portfolio for the coming cannabis boom.

Yes, I'm ready to join Stock Advisor and claim my FREE report!
Eric Bleeker
Eric Bleeker,
Senior Technology Analyst
The Motley Fool
 

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We work fervently, feverishly, and Foolishly to make sure all the facts and figures we publish in our emails are 100% accurate and up to date. Returns as of January 22, 2020. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Gardner owns shares of Amazon, Booking Holdings, Facebook, Netflix, and Walt Disney. Eric Bleeker owns shares of Amazon, Facebook, and Walt Disney. Tom Gardner owns shares of Facebook and Netflix. The Motley Fool owns shares of Amazon, Booking Holdings, Facebook, Netflix, and Walt Disney.

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