By Justin Spittler, editor, Casey Daily Dispatch
“Demand for marijuana assets is skyrocketing. And that means other Big Alcohol companies will have to inroad into the marijuana space soon. If they don’t, they’ll get left behind.”
I wrote this last Tuesday. I was talking about Constellation Brands’ recent deal with Canopy Growth.
To recap, Constellation, one of the world’s biggest spirits companies, recently bought 38% of Canopy, the world’s biggest marijuana company. It paid $4 billion for its stake.
That makes this the biggest marijuana deal ever. But as I explained last week, this is “just the beginning”:
Soon, every major alcohol company will have no choice but to “go green.”
• Now, you may have thought I was crazy for saying this…
It’s a bold statement, after all. But I didn’t make it lightly.
You see, I’ve been closely following the marijuana industry for over a year now. But I haven’t just consumed other people’s research like many analysts. I’ve gone to the frontlines of the legal marijuana boom.
I’ve been to Vancouver, San Francisco, and Denver, just to name a few. Along the way, I’ve met with marijuana venture capitalists, CEOs of multinational marijuana companies, and even master growers.
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This boots-on-the-ground research has given me an intimate understanding of the legal marijuana industry… and helped me understand the market’s true potential.
It’s why I’ve been saying for months that marijuana would go mainstream. Not years from now, either.
This is happening before our eyes.
As speculators, this is the kind of opportunity that we dream about. So I’ll show you how to position yourself for big gains in a second.
But first, let’s look at what’s happened since my last update on the sector.
• Diageo is reportedly in talks to enter the marijuana space…
Bloomberg reported last Friday:
The U.K. spirits maker has met companies in the past month as it considers a possible investment or alliance to make cannabis-infused beverages, the Canadian television station said on its website, citing people close to the situation who it didn’t identify. One executive told BNN a deal may take months, while another said a deal may be close.
According to Bloomberg, Diageo is reportedly in talks with at least three Canadian marijuana companies.
This is a huge deal. Diageo is the largest spirits company in the world. It owns Guinness, Johnnie Walker, and Smirnoff brands.
So there’s a chance it could announce an even bigger deal than the one Constellation just announced. That would obviously be extremely bullish for cannabis stocks.
• And I’m clearly not the only investor who thinks so…
Canadian marijuana producer Aphria surged 23% on the news. Supreme Cannabis, another Canadian marijuana company, jumped 16%.
Keep in mind, neither of these companies were named as possible candidates in a deal with Diageo. This is merely investors speculating on possible targets.
That tells you how excited the market is about a possible Diageo deal. But that’s not the only good news that marijuana investors have received since last week.
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• Another massive marijuana deal was announced on Monday…
Tilray sealed a deal with Nova Scotia Liquor.
Tilray is one of Canada’s biggest marijuana producers. Nova Scotia Liquor is a state-owned business that controls all distribution of alcoholic beverages in Nova Scotia, Canada. In this arrangement, Tilray will supply Nova Scotia Liquor with a variety of marijuana products as Canada gets ready to introduce recreational marijuana in October.
Tilray skyrocketed 22% on the day of the announcement.
But it wasn’t the only Canadian marijuana stock that soared on the news. You see, there are reportedly 13 other producers working to supply Nova Scotia.
Aphria closed the day up 7%. Supreme Cannabis closed the day up 4%.
• These are the kinds of announcements Casey readers have been waiting for…
You see, many of our readers bought marijuana stocks earlier in the year… after a big pullback.
But this sell-off was completely normal. You see, the North American Marijuana Index, which tracks 35 major marijuana stocks, more than doubled in value between last November and January.
That’s an incredible rally over just two months… So it’s perfectly healthy to see a pullback after an explosive run like that. This allows the market to catch its breath before making another run.
That’s why we encouraged readers who bet on legal marijuana to have a long-term perspective… and not lose sight of the big picture.
The good news is that the next wave appears to have arrived… thanks in large part to a flurry of deals between Big Alcohol and Big Marijuana companies lately.
And we believe marijuana stocks will run much higher from here.
• It’s still the early days for the legal marijuana industry…
Canada hasn’t even introduced recreational marijuana yet. That won’t happen until October 17.
More importantly, the global marijuana market is just starting to open up. I’m not the only Casey analyst who sees a huge opportunity here.
My colleague Nick Giambruno, chief analyst for and editor of The Casey Report and Crisis Investing, has been covering the cannabis industry for over a year now. He says he’s never seen an opportunity with as much profit potential as the legal marijuana market has right now.
Here’s Nick with more:
Marijuana is still illegal, or quasi-illegal, in most places around the world. That’s made it virtually impossible for regular investors to cash in on the lucrative marijuana trade.
Prohibition has funneled billions of dollars in profits to drug lords, corrupt government officials, and thugs. Those days are numbered…
Legalization is inevitable. It’s happening. And it’s about to unleash a $150 billion market that was previously underground.
So consider speculating on this emerging industry before it’s too late.
Just remember that marijuana stocks are volatile, as we’ve seen this year. You should never put more money at risk than you can afford to lose. It only takes a small amount to make a killing in the years ahead.
Regards,
Justin Spittler
Split, Croatia
August 30, 2018
P.S. Nick has positioned his readers to make the most of the global marijuana boom. In fact, five of his stock recommendations are already up 101%, 116%, 165%, 353%, and 523%.
Those are extraordinary gains. But Nick, like me, thinks the best is yet to come. You can learn about Nick’s top picks in the marijuana space by watching this brand-new presentation.
Reader Mailbag
Today, more positive feedback on our most recent Conversations With Casey, where Doug explained why Somalia shouldn’t have an army…
Absolutely great article. It stretches one’s mind in the total opposite direction of what they were thinking prior to reading this. At the end, the reader is convinced.
—Gerta
And another reader responds to Tuesday’s Dispatch on the biggest buy signal for gold since 2001…
For last five years gold bugs predicted an imminent stock market crash. The markets went straight up and gold went down. Now gold is going up WITH THE MARKETS and down with markets. It’s confounding.
—Patrick
As always, if you have any questions or suggestions for the Dispatch, send them to us right here.
Wanted: Expert Investment AnalystWe’re looking to hire an analyst for the Casey Research team. Our team is growing and a new spot has opened up for an ambitious person to research and write about commodities, stocks, crypto assets, and world markets. For this position, you’ll work directly with Nick Giambruno, Chief Analyst for and Editor of The Casey Report and Crisis Investing. Nick is Doug Casey’s globetrotting protégé. He writes about geopolitics, value investing in crisis markets, the cannabis market, global banking, and survival techniques for financial crises. If this sounds stimulating, keep reading for more details and how to apply. Who We AreWe’re a fast-growing company with all the opportunities of a small start-up and the stability of a deep-pocketed firm with a 30-year track record. We publish half a dozen advisories covering finance and economics. We have hundreds of thousands of readers around the world. Our business is in providing profitable ideas, explaining how the markets really work, and telling great stories. We’re completely independent and unbiased. We don’t take money from Wall Street or the government. Our revenue comes from selling subscriptions. We make money only if our readers are happy. Who You AreYou’re able to analyze assets from macro, technical, fundamental, and sentiment perspectives. You’re overflowing with investment and trading ideas. And you’re a voracious consumer of information. You have a genuine passion for finance and the investment industry. You’re intensely curious, and live and breathe the world’s markets. And you’re willing to travel anywhere and everywhere. You’re ready to improvise, adapt, and overcome. You’re a good thinker, storyteller, and writer. You’re also good company, and you’re the one your friends say is the smartest person in the room. “Must-haves”:
The Job We Need DoneWe’re looking for someone who loves investment analysis. Someone who wants to make a living reading, thinking, traveling, and writing. Someone who can help us share big ideas with the world. If this sounds attractive—and you meet the criteria above—we’d love to hear from you. The compensation will depend on your level of experience. Know this: Dozens of analysts at Agora (our parent company) who write newsletters have become millionaires. What to Do NowSend us a basic resume. We’d like to see where you’ve worked. Write a letter telling us about yourself. We don’t care much about what school you went to. We do care about what you’ve learned doing whatever it is you’ve been doing. We appreciate odd jobs, but we’re also willing to consider Wall Street refugees. Send us an email with the following information…
Prepare for conversation and travel. If you have what we’re looking for, you’ll start out with a one-on-one conversation with Nick. If that goes well, we’ll fly you to Delray Beach for a full day of interviews. And if we still like each other after that, we’ll discuss the next steps. Get in touch at [email protected]. Put “Investment Analyst” in the subject line. That’s your first test. |
Dave Forest’s Extraordinary Discovery
Dave Forest is our in-house commodities expert and editor of International Speculator.
He discovered a rare fuel source buried in the ground in Idaho that he calls “Brandt Oil.” It could change the energy landscape in the U.S. for good…
We’ve asked Dave to discuss what he’s uncovered about this new fuel source. You can access it here…
