One ASX Stock for the Coming Marijuana Boom
By: Bruce Jackson
A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming. To the tune of an estimated $US22 billion.
Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.
Here in Australia, it’s looking increasingly likely the ACT will legalise cannabis use, something that could open the floodgates for other states and territories to do the same.
Meanwhile, thousands of Australians are already legally using medicinal cannabis to treat conditions like chronic pain and anorexia… yet experts think this is just the tip of the iceberg.
Given leading experts have said the size of the US market would skyrocket from $US174 million in 2016 to a massive $US22 billion by 2022, we think it’s time for investors to start paying attention.
Whichever way you look at the space — hemp products, recreational use and the booming medicinal cannabis market — you can’t deny the monumental investing opportunity that a potentially $US22 billion industry represents.
But it’s also a relatively new industry. Untested, unproven.
We here at The Motley Fool love being on the cutting edge of new investing trends…
… like first picking Afterpay at $4.32 a share (now trading at around $25)
… Altium at $2.95 a share… (now trading at around $32)
… or Appen at $2.55 a share…(now trading at around $24)
Not every Motley Fool pick has performed as well.
BUT, we do have a knack for being on the cutting edge… and we’ve been quiet on this growing marijuana industry for a while.
Because a game-changing deal recently went down in the US which is expected to significantly open up trade and marketing opportunities to the cannabis industry.
And one little-known ASX company – which now has the opportunity to rake in profits from the estimated $US22 billion US hemp and cannabis industry – looks to us to be ideally positioned to take advantage.
Many ASX marijuana stocks are losing money.
Worse, many are not even generating any revenue at all.
To say an investment in many of these early-stage ASX marijuana companies would be incredibly risky is likely putting it mildly.
Yet our in-house experts have just discovered one little-known ASX marijuana stock that is not only generating meaningful revenue — which jumped over 120% higher in its most recent report…but is also profitable.
This is no ordinary company.
– Although it is only a recent IPO, its CEO has over 25 years of experience in the hemp industry.
– Unlike many marijuana upstarts, it already has a widely recognised global brand.
– This fast growing ASX-quoted company already has production facilities in Colorado… giving it what could be a crucial first-mover advantage in the massive US market.
– Looking to get in ahead of the game, it has already purchased a prized 60 acre property in the cannabis-growing belt of Northern NSW, anticipating production of 1-2 tonnes of medicinal cannabis in the first year.
Our Motley Fool analysts believe this company has the opportunity to rake in big profits from not only the nascent Australian medicinal cannabis market, but ALSO from the estimated $US22 billion US cannabis industry.
This is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.
Previously, we’ve considered the space too risky.
And although this company is profitable, and crucially has ZERO debt and a balance sheet chock full of cash…
There is a risk of loss. But, with our analysts projecting that if everything went right this stock could soar 1177% higher in the coming years, the pure upside potential looks to be worth the risk.
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 we here at The Motley Fool have 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:
- Pro Medicus, up 1189%
- Webjet, up 587%
- Corporate Travel Management, up 1125%
- Nearmap, up 745%
If you’d invested $5,000 in each of those companies when we recommended them, you’d be sitting on over $200,000 right now.
Which brings me back to this latest find.
This company’s future doesn’t hinge just on medical marijuana. Under current legislation, this company is already profitable, and growing quickly, and we think has an incredible field of opportunity ahead.
But now that there’s an estimated $US22 billion industry emerging from the woodwork, its prospects look positively mouthwatering – and we think you could regret not getting invested now.
Forget penny pot stocks.
Forget marijuana stocks that talk a big game, but are generating zero revenue.
THIS is the company we think investors should consider for their portfolio if you want to position yourself wisely for the coming marijuana boom.
And even though this company has had success so far, far fewer investors than you might expect are taking advantage of this VERY rare moment…
So, due to the urgency of this recent development, we put together a painstakingly researched report that shows you how this one stock could potentially mint its own marijuana millionaires.
It reveals the reasons why we think every forward-thinking investor should be paying close attention to this revolutionary new industry and what might be a potentially life-changing investment opportunity.
This exclusive report is FREE to you when you sign up for The Motley Fool’s Extreme Opportunities today.
Simply enter your email address below to learn more about how you can access the one share we think you should consider for your portfolio for the coming cannabis boom.
Returns as of 16th May 2019. At that date, Bruce Jackson and The Motley Fool owned shares in Altium, Appen, Pro Medicus, Webjet, Corporate Travel Management and Nearmap. For more information about The Motley Fool see our Financial Services Guide. All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.