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Always wanted to own some Amazon and happy to of taken advantage of this dip.
BOING!
What a recover after that gloomy start.
Glad loose hands departed.
Oversold
Cannabis retailers still short of supply on second day of legal pot
https://www.bnn.ca/1.1154714.1539904906
Demand for pot grow-ops is ‘astronomical’ as prohibition ends
https://www.bnn.ca/1.1154402.1539871155
What a recovery...
Multiple products already sold out in AB!!!!!
Go time!
https://www.thestar.com/news/cannabis/2018/10/16/how-much-will-cannabis-cost-you-heres-a-breakdown-by-province.html
How much will cannabis cost you? Here’s a breakdown by province
Cannabis is legal in Canada as of Oct. 17, but the pricing and distribution is left largely up to the provinces. Here’s what we know about how much pot will cost across the country. This story will be updated as cannabis becomes legal in each province and online sales begin.
Ontario
At the Ontario Cannabis Store, the cheapest price for a gram of marijuana is $7.50. Pre-rolled joints will cost you much more.
At the Ontario Cannabis Store, the cheapest price for a gram of marijuana is $7.50. Pre-rolled joints will cost you much more. (Ontario Cannabis Store)
The cheapest gram of dried flower on the Ontario Cannabis Store (OCS) is $7.50, and prices go up to $13.25 per gram. The cheapest half-gram pre-rolled joint is $10.35. Keep in mind the most you can order at one time is 30 grams, in line with the amount you’re allowed to carry under federal law.
The OCS also sells more extras and goodies than any other store currently online, from oils and sprays to rolling papers to vaporizers — pick up a hemp wick for $1.95, or a $7 bottle of Orange Chronic glass cleaner.
TOP STORIES. IN YOUR INBOX: For the day’s top news from the Star’s award-winning journalists, sign up for our daily headlines newsletter.
P.E.I.
The cheapest dried flower currently on the government-run cannabis website is $7.83 per gram. Pre-rolled half-gram joints are $5.65 each.
New Brunswick
Dried flower starts at $8.99 per gram online and goes up to $15.50. Pre-rolled half-gram joints are $7.50 each. The Cannabis NB shop also sells accessories such as pipes and vaporizers.
Nova Scotia
There are three levels of cannabis quality in Nova Scotia, as decided by the Nova Scotia Liquor Corporation: “value” ranges from $6.33 to $8.49, “core” goes from $9.00 to $10.98 and “premium” starts at $10.99.
Newfoundland
The cheapest dried flower currently on the government-run cannabis website is $5.87 per gram, but it isn’t available for purchase yet. The cheapest one you can buy right now is $7.71 per gram if you buy 3.5 grams at once. Prices will range from $6 to $13 per gram, according to the Newfoundland and Labrador Liquor Corporation.
Quebec
The government has said that grams will start at just over $5. As of early Wednesday morning, the province’s online store still hadn’t been activated.
Manitoba
Six stores have been licensed to open in the province, but retailer Delta 9 is the province’s only online non-medical retailer so far. Delta 9 sells grams online for $12. Of note: the company has partnered with the Pineapple Express delivery service and is promising same-day delivery for orders in Winnipeg.
Alberta
The website crashed at the stroke of midnight for several minutes before sorting users into a queue of thousands. By the time the Star was able to view the site, multiple products were already out of stock, but the cheapest dried flower available was $9.24 per gram. A half-gram pre-rolled joint is $6.64. Every retailer will have to purchase its cannabis through the Alberta Gaming, Liquor and Cannabis Commission, which will sell it at an average price per gram of $8.90.
British Columbia
Grams of dried flower start at $6.99, with a huge variety — more than any other online store right now. Half-gram pre-rolled joints start at $4.20. (Get it?)
The province went all-out on accessories — the selection of rollies, filters, grinders, vapes, bongs, pipes, humidity regulators, etc. is even larger than Ontario’s.
Yukon
The government will run one temporary store in Whitehorse, and the online store will open Wednesday morning. They have not released a price list yet.
Northwest Territories
The government is selling through its liquor branch, which lists five dried flowers and nothing else available for purchase. All three of the cheapest individual grams are “coming soon,” so the least expensive legal gram of weed you can buy in the territory right now is $17.50.
Nunavut
Cannabis will only be available through Tweed, an online retailer with no brick and mortar shops in Nunavut. As of press time online ordering wasn’t available on Tweed.
Jack Hauen is a breaking news reporter, working out of the Star’s radio room in Toronto. Follow him on Twitter: @jackhauen
Light them if u got them!
Very interesting.
Nice read!
Great to see!
Boomage
Right on!
HAD TO GIVE HELL YAH.
Dog now barking head off lol
Ready for another step after very nice consolidation.
https://www.ctvnews.ca/mobile/canada/countdown-to-cannabis-in-canada-world-s-largest-country-with-legal-pot-sales-1.4127871
Countdown to cannabis in Canada: World's largest country with legal pot sales
DELTA, B.C. -- Mat Beren and his friends used to drive by the vast greenhouses of southern British Columbia and joke about how much weed they could grow there.
Years later, it's no joke. The tomato and pepper plants that once filled some of those greenhouses have been replaced with a new cash crop: marijuana. Beren and other formerly illicit growers are helping cultivate it. The buyers no longer are unlawful dealers or dubious medical dispensaries; it's the Canadian government.
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On Oct. 17, Canada becomes the second and largest country with a legal national marijuana marketplace. Uruguay launched legal sales last year, after several years of planning.
Cannabis Canada: Click for complete coverage on CTVNews.ca
It's a profound social shift promised by Canadian Prime Minister Justin Trudeau and fueled by a desire to bring the black market into a regulated, taxed system after nearly a century of prohibition.
It also stands in contrast to the United States, where the federal government outlaws marijuana while most states allow medical or recreational use for people 21 and older. Canada's national approach has allowed for unfettered industry banking, inter-province shipments of cannabis, online ordering, postal delivery and billions of dollars in investment; national prohibition in the U.S. has stifled greater industry expansion there.
Hannah Hetzer, who tracks international marijuana policy for the New York-based Drug Policy Alliance, called Canada's move "extremely significant," given that about 25 countries have already legalized the medical use of marijuana or decriminalized possession of small amounts of the drug. A few, including Mexico, have expressed an interest in regulating recreational use.
"It's going to change the global debate on drug policy," she said. "There's no other country immediately considering legalizing the nonmedical use of cannabis, but I think Canada will provide almost the permission for other countries to move forward."
At least 109 legal pot shops are expected to open across the nation of 37 million people next Wednesday, with many more to come, according to an Associated Press survey of the provinces. For now, they'll offer dried flower, capsules, tinctures and seeds, with sales of marijuana-infused foods and concentrates expected to begin next year.
The provinces are tasked with overseeing marijuana distribution. For some, including British Columbia and Alberta, that means buying cannabis from licensed producers, storing it in warehouses and then shipping it to retail shops and online customers. Others, like Newfoundland, are having growers ship directly to stores or through the mail.
Federal taxes will total $1 per gram or 10 per cent, whichever is more. The feds will keep one-fourth of that and return the rest to the provinces, which can add their own markups. Consumers also will pay local sales taxes.
Some provinces have chosen to operate their own stores, like state-run liquor stores in the U.S., while others have OK'd private outlets. Most are letting residents grow up to four plants at home.
Canada's most populous province, Ontario, won't have any stores open until next April, after the new conservative government scrapped a plan for state-owned stores in favour of privately run shops. Until then, the only legal option for Ontario residents will be mail delivery -- a prospect that didn't sit well with longtime pot fan Ryan Bose, 48, a Lyft driver.
"Potheads are notoriously very impatient. When they want their weed, they want their weed," he said after buying a half-ounce at an illicit medical marijuana dispensary in Toronto. "Waiting one or two three days for it by mail, I'm not sure how many will want to do that."
British Columbia, home of the "B.C. Bud" long cherished by American pot connoisseurs, has had a prevalent marijuana culture since the 1970s, after U.S. draft-dodgers from the Vietnam War settled on Vancouver Island and in the province's southeastern mountains. But a change in government last year slowed cannabis distribution plans there, too, and it will have just one store ready next Wednesday: a state-run shop in Kamloops, a few hours' drive northeast of Vancouver. By contrast, Alberta expects to open 17 next week and 250 within a year.
There is no immediate crackdown expected for the dozens of illicit-but-tolerated medical marijuana dispensaries operating in British Columbia, though officials eventually plan to close any without a license. Many are expected to apply for private retail licenses, and some have sued, saying they have a right to remain open.
British Columbia's ministry of public safety is forming a team of 44 inspectors to root out unlawful operations, seize product and issue fines. They'll have responsibility for a province of 4.7 million people and an area twice as large as California, where the black market still dwarfs the legal market that arrived in January.
Chris Clay, a longtime Canadian medical marijuana activist, runs Warmland Centre dispensary in an old shopping mall in Mill Bay, on Vancouver Island. He is closing the store Monday until he gets a license; he feared continuing to operate post-legalization would jeopardize his chances. Some of his eight staff members will likely have to file for unemployment benefits in the meantime.
"That will be frustrating, but overall I'm thrilled," Clay said. "I've been waiting decades for this."
The federal government has licensed 120 growers, some of them enormous. Canopy Growth, which recently received an investment of $4 billion from Constellation Brands, whose holdings include Corona beer, Robert Mondavi wines and Black Velvet whiskey, is approved for 5.6 million square feet (520,000 square meters) of production space across Canada. Its two biggest greenhouses are near the U.S. border in British Columbia.
Beren, a 23-year cannabis grower, is a Canopy consultant.
"We used to joke around all the time when we'd go to Vancouver and drive by the big greenhouses on the highway," he said. "Like, 'Oh man, someday. It'd be so awesome if we could grow cannabis in one of these greenhouses.' We drive by now and we're like, 'Oh, we're here."'
Next to Canopy's greenhouse in Delta is another huge facility, Pure Sunfarms, a joint venture between a longtime tomato grower, Village Farms International, and a licensed medical marijuana producer, Emerald Health Therapeutics. Workers pulled out the remaining tomato plants last winter and got to work renovating the greenhouse as a marijuana farm, installing equipment that includes lights and accordion-shaped charcoal vents to control the plant's odour. By 2020, the venture expects to move more than 165,000 pounds (75,000 kg) of bud per year.
Some longtime illegal growers who operate on a much smaller scale worry they won't get licensed or will get steamrolled by much larger producers. Provinces can issue "micro-producer" licenses, but in British Columbia, where small-time pot growers helped sustain rural economies as the mining and forestry industries cratered, the application period hasn't opened yet.
Sarah Campbell of the Craft Cannabis Association of BC said many small operators envision a day when they can host visitors who can tour their operations and sample the product, as wineries do.
Officials say they intend to accommodate craft growers but first need to ensure there is enough cannabis to meet demand when legalization arrives. Hiccups are inevitable, they say, and tweaks will be needed.
"Leaving it to each province to decide what's best for their communities and their citizens is something that's good," said Gene Makowsky, the Saskatchewan minister who oversees the province's Liquor and Gaming Authority. "We'll be able to see if each law is successful or where we can do better in certain areas."
British Columbia safety minister Mike Farnworth said he learned two primary lessons by visiting Oregon and Washington, U.S. states with recreational marijuana. One was not to look at the industry as an immediate cash cow, as it will take time to displace the black market. The other was to start with relatively strict regulations and then loosen them as needed, because it's much harder to tighten them after the fact.
Legalization will be a process more than a date, Farnworth said.
"Oct. 17th is actually not going to look much different than it does today," he said.
------
Rob Gillies reported from Toronto. Gene Johnson is a member of AP's marijuana beat team
I didn’t follow but how did the day end yesterday on the NYSE?
$64.44 +4.8%
Canada
Green in Canada +3.3%
Canopy gets ready
Canopy Growth climbed 6% on another solid day for the marijuana stock. Investors are looking carefully at the Canadian market for recreational marijuana in light of the pending legalization of Canadian cannabis later this month, and one study suggests that the supply of marijuana that Canopy and its peers will make available to the market could meet just 30% to 60% of the demand there. That should leave room for Canopy to boost production without fear of causing market disruptions, and that in turn could prove out Canopy's broader goal of becoming a leading supplier of cannabis products both in Canada and worldwide.
Beautiful recovery day on the NYSE.
https://www.cbc.ca/news/business/legal-cannabis-shortage-looms-1.4845816?cmp=FB_Post_News
Don't delete your dealer's number yet — legal cannabis shortage looms
Licensed cannabis producers have vaults of marijuana, stocked with thousands upon thousands of kilograms ready for Oct. 17, but industry analysts are already predicting all that pot won't meet demand during the first year of legal recreational use.
"There is not currently enough legal supply of marijuana to actually supply all the recreational demand in Canada," said economist Rosalie Wyonch of the C.D. Howe Institute, a public policy think-tank.
"We didn't have enough producers far enough ahead from legalization that they'll actually be able to deliver enough product to market by the time legalization happens."
Wyonch has been tallying the inventory numbers licensed producers are required to provide to Health Canada, along with demand forecasts from Statistics Canada and the Parliamentary Budget Officer. She also reviewed the demand patterns in Colorado and Washington after those states legalized recreational cannabis use.
"I don't see empty shelves manifesting on the first day probably, and not the first month," she said. "But as the year progresses, what we'll see is either prices in the legal market will have to rise, or we'll actually see the supply shortage."
Economist Rosalie Wyonch of the C.D. Howe Institute has co-written a report about the size of the market for illegal cannabis. (Rob Krbavac/CBC)
'Great concern'
In Alberta, Angus Taylor has raced to prepare 17 retail outlets for NewLeaf Cannabis.
One of his downtown Calgary stores is totally ready — display cases are full of accessories like pipes, bongs and rolling papers while a sampling station that will allow consumers to smell various strains of products is fitted with specially designed containers.
But Taylor has already heard about the coming shortage from a number of suppliers.
"I recently heard comments from some of the CEOs, saying that they don't expect there to be enough product in the system, and that, of course, is of great concern to us."
Like Wyonch, he thinks the shortage won't happen right away.
"We're concerned about the second or the third orders, when the storage facilities at the licensed producers start to get a bit bare."
How much weed do we need?
Accurate numbers for supply and demand of cannabis are difficult to gauge. On the demand side, there's no way to know for sure exactly how much cannabis Canadians typically consume on an annual basis; black market sales figures are by their nature sketchy at best.
In August, Statistics Canada released a survey of cannabis users that provided information on which analysts could base demand estimates. It's also possible to look at other legal marketplaces and extrapolate based on population. Canaccord Genuity, one of the most active investment firms in the cannabis business, estimates current annual Canadian demand is between 400,000 to 500,000 kilograms. Health Canada's demand forecast is close to twice that at 926,000 kilograms.
As for supply, the industry's most recent official inventory report covers the quarter that ended in June. It shows just 66,404 kilograms of dried cannabis for medical use on hand at that time. There is no data available on what may have been stockpiled for recreational use.
Like many other licensed producers, Canopy Growth has a vault full of cannabis ready for Oct. 17 and beyond. (Keith Whelan/CBC)
Speeding up production
Health Canada says production has been ramped up in a big way. Since July 2017, it has licensed 73 additional producers and more than 160 expansions of existing facilities have been approved. There are now at least 117 licensed producers, coast to coast.
In an email to CBC News, a spokesperson for Health Canada wrote: "Based on current inventory levels and growth in production capacity, the industry is well positioned to supply product as consumers transition to the legal market."
But Wyonch of the C.D. Howe Institute insists there are bound to be shortfalls along the way.
Shoppers Drug Mart get medical pot license
Canadian cannabis companies invest millions in Pablo Escobar's home turf in Colombia
"At the end of the day, this is an agricultural product. It takes time to plant, grow, harvest and process, even after you've done all the regulatory requirements," she pointed out.
She also said that the black market will be ready to fill any supply gaps.
"As a country, we don't have a shortage of marijuana; we have a shortage of legal marijuana."
Black market to stay in business
The federal government has said one of the key reasons for the legalization of recreational cannabis use is to get rid of the black market. But it seems officials are aware that will take time.
In its statement to CBC News, Health Canada acknowledged that "based on the experience in U.S. states … the displacement of the illegal market will follow a similar pattern of incremental growth over the first few years."
Angus Taylor shows off the empty shelves in the backroom of one of NewLeaf Cannabis's new stores. (Colin Hall/CBC)
Wyonch estimates Canadian producers will be able to supply one-third of what consumers will want in the first year: about 200,000 kilograms. That means local black market drug dealers aren't going to see business dry up altogether overnight.
"Canada has a very prolific and highly functional black market," Wyonch said.
Very nice!
https://globalnews.ca/news/4517832/alberta-cannabis-shop-locations/
17 Alberta shops will sell cannabis on 1st day of legalization
Caley Ramsay
WATCH ABOVE: After Oct. 17, passengers that take to the sky will be able to stroll through airport security with marijuana depending on their final destination. Meaghan Craig reports.
Albertans will have 17 locations to choose from when it comes to buying cannabis in store on the first day it becomes legal.
Alberta Gaming Liquor & Cannabis released the list of pot shops that will be up and running with products on the shelves on Oct. 17.
Of the 17 Alberta retailers issued interim cannabis licences, six are located in Edmonton, three are in Medicine Hat and two are in Calgary. (See the full list below).
READ MORE: Edmonton settles on 10-metre buffer zone for smoking, cannabis use around entrances
The interim licence means retailers will be able to order and have products shipped to their locations ahead of legalization.
Interim licensees that fulfill all conditions will be issued a sales licence on Oct. 17 so they are legally ready to open their doors to the public, the AGLC said in a news release Thursday afternoon.
The AGLC will continue to license retailers at a steady pace in the days and months following Oct. 17. It’s anticipated about 250 stores will be open in Alberta within the first year of legalization.
The 17 locations are mapped out below:
READ MORE: Drinking weed: Here’s everything to know about cannabis-infused drinks
Daniel Nguyen is the owner of Numo Cannabis in north Edmonton, one of the 17 approved shops.
“I do feel very lucky that we were able to go through every hoop, meet all the requirements and are able to open on Oct. 17,” he said. “Lots of sleepless nights. We’ve been working at this for almost a year now. We applied back in early February and we’ve been doing work ever since then.
“I definitely thought there was going to be more competition, especially with the amount of applicants that went through. But through everything that stores had to go through to get set up, I’m not surprised that it’s this small of an amount. We did have a large process to go through in a short amount of time.”
READ MORE: Cannabis use, consumption banned by major Alberta rental company Boardwalk
Nguyen anticipates opening day will be busy, with people interested to see what the legal pot-buying experience is all about.
“I think people are going to want to try to purchase it legally, be able to get that experience. It’s going to be just like going to buy alcohol. Now, something that you couldn’t get before in a store you can go get in a store, so why not go and try it?
Nguyen said he will be working every day until Oct. 17, ensuring his store is set up and ready for customers.
“We want to get it done right. We want to make sure people are able to get their product, a good quality product, as well as have a good experience while getting it,” he said.
“Twelve days and counting.”
Beyond the stores, Albertans will also be able to buy cannabis online beginning on Oct. 17.
READ MORE: Online pot shopping will require double ID check in Alberta
The government’s cannabis website will be the only legal outlet for people to purchase the product online. The AGLC is working with 15 licensed producers, including three from Alberta, to supply the products.
Watch below: The rules on where you can and can’t consume cannabis vary depending which city you live in.
All non-government-run online sales of cannabis will be illegal. The AGLC said it didn’t know what type of demand the website might see come Oct. 17.
The list of shops that will sell cannabis on Oct. 17 in Alberta.
https://finance.yahoo.com/news/day-ahead-top-3-things-232800695.html?.tsrc=applewf
Day Ahead: Top 3 Things to Watch
Investing.com
October 3, 2018, 5:28 PM MDT
More jobs numbers arriving ahead of big payrolls Friday.
More jobs numbers arriving ahead of big payrolls Friday.
Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Layoffs, Jobless Claims Data on Tap
Following today’s better-than-expected payroll numbers from ADP, the market moves on to the second round of employment data before the final official September jobs report.
At 7:30 AM ET (11:30 GMT), employment services firm Challenger release its figures on September jobs cuts. Layoffs came in at 38,500 in August.
Initial jobless claims arrive, as always, at 8:30 AM ET.
On average, economists expect that weekly claims for first-time unemployment benefits edged down to 211,000 from the week before.
Financial stocks propelled the overall market today. The strong jobs numbers and a better-than-expected ISM services number pushed the 10-year yield up to levels not seen since 2011, helping banks.
2. More Fodder for Fed Heads
Fed speak continues as Federal Reserve Vice Chairman Randal Quarles will be heading to Capitol Hill.
Quarles will speak at the Senate Banking Committee on "Implementation of the Economic Growth Regulatory Relief and Consumer Protection Act."
He’ll start speaking around 9:15 AM ET.
With yields bouncing higher today, the chance of a Fed rate hike in December rose close to 80%, according to Investing.com’s Fed Rate Monitor Tool.
There will also be factory orders numbers for August coming at 10:00 AM ET. Economists are predicting a rise of 2.1%, compared with a drop in July.
3. Does Constellation Brands Have More Cannabis News?
In earnings reports tomorrow, Constellation Brands (NYSE:STZ), the maker of Corona beer, will release numbers before the bell.
Analysts are forecasting a profit of $2.61 per share on sales of about $2.25 billion. But beyond the numbers, investors will be looking to see if there are any more details about its investment in the cannabis sector.
The beverage company sparked the huge rally in cannabis stocks when it announced a further investment in Canopy Growth (NYSE:CGC) and more details of plans could spur more speculation of deals in the sector.
After the bell, Costco Wholesale (NASDAQ:COST) will report its latest earnings.
On average, analysts predict the company will earn $2.36 per share on sales of about $44 billion.
While slow and steady growth has been the name of the game for the stock, any signs of when it could issue another special dividend would be welcome news to investors.
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https://finance.yahoo.com/news/3-marijuana-stocks-buy-october-154200235.html?.tsrc=applewf
3 Marijuana Stocks to Buy in October
September 30, 2018, 9:42 AM MDT
If you've been trading marijuana stocks hoping to make a lot of money fast, stop it. Even if you've been really lucky so far, it's time to change your perspective. Shift your focus from the short term to the long term.
Why? First of all, you're more likely to generate solid returns. And the reality is that there are several marijuana stocks that have a really good shot at being long-term winners. Three that I think fit the bill are CannaRoyalty (NASDAQOTH: CNNRF), Canopy Growth (NYSE: CGC), and Scotts Miracle-Gro (NYSE: SMG). Here's why these look like great marijuana stocks to buy in October.
Shopping cart with caduceus and marijuana leaf on top of pile of cash.
Shopping cart with caduceus and marijuana leaf on top of pile of cash.
Image source: Getty Images.
1. CannaRoyalty
At first glance, CannaRoyalty might look like yet another Canadian marijuana business. It's based in Ottawa. CannaRoyalty stock is listed on Canada's New Stock Exchange (CNQ). And the company has funded revenue streaming deals with several small Canadian marijuana growers. But CannaRoyalty isn't your typical Canadian marijuana stock.
Although CannaRoyalty remains active in funding deals in Canada, California is where the real action is for the company. Thanks to some strategic acquisitions, CannaRoyalty ranks as the largest distributor of legal cannabis products in the state. As the company states to investors, "Canada is big. California is huge."
That's not just spin. Arcview Market Research and BDS Analytics project that the total Canadian marijuana market will be around $5.5 billion by 2022. California's marijuana market is expected to top $7.7 billion by then. It's no small feat to be the largest distributor in the largest marijuana market in the world.
CEO Marc Lustig recently said that the company is only at the beginning of "a multi-quarter parabolic step change in revenue." My hunch is that he's right. The company's early investments have begun to pay off nicely, providing CannaRoyalty plenty of cash to expand and fuel more growth. I continue to view CannaRoyalty as the best under-the-radar marijuana stock I've seen so far.
2. Canopy Growth
Canopy Growth stands as the top marijuana stock in terms of market cap (although it briefly surrendered its No. 1 spot to Tilray for a few days). I think that Canopy deserves its premier position and is in the best position of any Canadian marijuana grower to thrive over the long run.
The company's relationship with big alcoholic beverage company Constellation Brands is a key reason I think so highly about Canopy's prospects. Constellation bought a 9.9% stake in Canopy last year. But the Corona beer maker's recent $4 billion investment in Canopy totally changed the dynamics in the cannabis industry.
As a result of this massive investment, Canopy now has a huge cash stockpile that it plans to use to rapidly expand. Canopy co-CEO Bruce Linton stated that his company has a list of potential acquisition targets to cement its leadership position in the industry.
I can understand that some investors might be reluctant to buy Canopy with its market cap now approaching $12 billion. However, my view is that the global cannabis market over the long term will easily top $100 billion. I think that Canopy will continue to be a leader in this market, giving the stock plenty of room to run over the next decade.
3. Scotts Miracle-Gro
Many investors are too risk averse to jump into marijuana stocks like CannaRoyalty and Canopy. I think that Scotts Miracle-Gro presents an attractive alternative for these conservative investors who would still like to profit from growth in the cannabis industry.
Scotts makes more than 90% of its total revenue from sales of consumer lawn and garden products. This side of the company's business benefits from longer warm seasons. The National Oceanic and Atmospheric Administration (NOAA) predicts that the climate will continue to warm in the coming years. While these trends could be negative in some ways, they could help Scotts Miracle-Gro's core business.
The company ranks as the largest U.S.-based marijuana business in terms of market cap due to its Hawthorne Gardening subsidiary. Hawthorne ranks as the No. 1 supplier of hydroponics products to the U.S. cannabis industry, with its largest market, not surprisingly, in California. The company's cannabis business should increase considerably as more states legalize medical and recreational marijuana and as the markets mature in states that have already legalized marijuana.
Scotts Miracle-Gro stock is down so far in 2018 due to problems with California's launch of its recreational marijuana market and a late start to spring. I think that buying Scotts in October could set up investors for a nice bounce next year.
Risks
I like CannaRoyalty, Canopy Growth, and Scotts Miracle-Gro and think their long-term prospects look good. However, I would be remiss in not pointing out several risks for these stocks.
CannaRoyalty and Scotts operate in the U.S. cannabis market, where marijuana remains illegal at the federal level. Although I don't think the feds will crack down on businesses in states that have legalized marijuana, it's still a possibility. Any signs of such a move would likely cause shares of CannaRoyalty and Scotts to tumble.
Many assume that Canada's recreational marijuana market will get off to a strong start in a few weeks. But there's a chance that demand won't be as great as predicted. Weaker-than-expected demand would probably take a bite out of Canopy's market cap.
As I said at the outset, though, it's better to think long term instead of short term. Over the long term, my view is that all three of these marijuana stocks are poised for success.
More From The Motley Fool
The Best Marijuana Stocks to Buy in 2018
Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
Your 2018 Guide to Investing in Marijuana Stocks
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Cannabis-Laced Drinks Seen as $600 M Market in U.S. by 2022 - Bloomberg
https://www.bloomberg.com/news/articles/2018-09-27/cannabis-laced-drinks-seen-as-600-mln-market-in-u-s-by-2022
https://nationalpost.com/pmn/news-pmn/canada-news-pmn/why-companies-are-eyeing-the-cannabis-compound-that-doesnt-get-you-high
Why companies are eyeing the cannabis compound that doesn't get you high
The Canadian Press Armina Ligaya September 27, 2018
10:01 AM EDT
TORONTO — It’s being touted as the next new miracle ingredient for everything from pet treats to anti-aging face creams and elixirs that can help an athlete’s aching body recover faster.
But that’s not the only reason that cannabidiol or CBD, a compound derived from cannabis that doesn’t get people stoned, is being eyed by companies of all stripes including beverage giant Coca-Cola.
Regulations and attitudes are warming up to it and the potential for CBD-infused products to be available on grocery or pharmacy shelves — instead of in tightly-regulated pot shops — in the not-so-distant future.
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Including in Canada down the road, says Trina Fraser, an Ottawa-based lawyer who advises the cannabis industry.
Globally, the market for CBD could be “massive,” she said.
“Think about cosmetics, and skin creams, and arthritic topical creams, and all sorts of types of products that you would go to a drug store to buy that could have these potentially therapeutic effects from CBD… That’s certainly not unrealistic, and I think in fact, odds are, we will be there (in Canada). I hope, within the next five years.”
CBD is a compound found in cannabis and hemp heralded for its therapeutic effects, but does not produce a narcotic effect. Tetrahydrocannabinol, or THC, is the psychoactive compound that gives users a high.
Research evidence, as for cannabis overall, is slim but the anecdotal buzz about CBD is building.
“The body of research around it is still catching up, it’s still in progress, but that word of mouth is really what’s driving it,” said Bethany Gomez, a legal cannabis and CBD industry researcher with Brightfield Group.
Products with CBD in Canada are illegal unless authorized for medical purposes, according to Health Canada. When Canada legalizes pot for recreational use on Oct. 17, products with CBD will be regulated similarly to marijuana products.
But restrictions on CBD are showing signs of easing, particularly in the U.S., and the growth projections for the market are now dramatically higher than they were a year ago, Brightfield says. It could outpace the rest of the cannabis market to reach US$22 billion by 2022, according to its recent report.
Hemp and cannabis are Schedule 1 federally controlled substances in the U.S. CBD is legal in all 50 states, but only if derived from industrial hemp cultivated for academic research or agricultural pilot programs. However, if the 2018 Farm Bill working its way through the U.S. legislative process passes, it would allow for the full legalization of industrial hemp in the United States, allowing CBD to be sold across state lines.
“This legal grey area that plagues the market right now, that essentially is wiped out… It allows it to be on the shelves of Krogers and Target and Walmart,” Gomez said.
World Health Organization experts said last year that CBD in its pure state “does not appear to have abuse potential or cause harm” and it should not be internationally scheduled as a controlled substance. WHO added that initial studies show that CBD could have some therapeutic value for seizures due to epilepsy and related conditions.
Some athletes now have the green light to use CBD. The World Anti-Doping Agency last year said CBD products would be OK for use, provided it does not have any THC, which remains banned.
In June, 3-on-3 basketball league BIG3 said its players would be allowed to use CBD for pain management and recovery, believed to be the first professional sports league in the U.S. to do so.
Change is afoot at home too.
Health Canada put forward an exemption last month for industrial hemp farmers with the proper licenses to harvest and store the whole plant including the flower, where CBD is found, not just the stalk and seeds which produce little amounts of the cannabinoid. The farmers will be able to sell it to a licensed processor for sale under the Cannabis act. Prior to this, hemp growers had to destroy the other parts of the plant.
As well, Health Canada has spoken about potentially allowing for natural health products to contain cannabis and cannabinoids, including CBD. Natural health products in Canada must be safe to use as over-the-counter products and do not need a prescription to be sold.
There are 220 NHPs with cannabis currently authorized for sale, according to Health Canada. These are authorized because they use only the stalk and non-viable seeds, as allowed under current legislation, which produce no meaningful CBD, if any, Fraser said.
The proposal in Health Canada’s November 2017 consultation paper would allow the flowering heads of the plant to be used in NHPs, she added.
Health Canada concluded in June that more consultation is still needed.
Still, this hasn’t stopped companies in Canada from offering products such as spa treatments infused with CBD, which are either breaking the law or don’t contain a large enough amount of CBD to have an effect, Fraser said.
Meanwhile, alcohol companies and consumer packaged goods companies are taking a closer look too.
The latest company to express interest in CBD is beverages giant Coca-Cola, which BNNBloomberg reported was in “serious talks” with Canadian marijuana producer Aurora Cannabis.
Coca-Cola said it had no interest in marijuana or cannabis but “along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world.”
Meanwhile, Canopy Growth is embarking on a Health Canada-approved clinical trial to research the use of CBD to treat animal anxiety. Canopy Growth’s venture capital arm Canopy Rivers also has an investment in LiveWell Canada, which is researching CBD and other cannabinoids and plans to develop CBD products.
“Our belief is it will be not only as big as cannabis, but far, far greater,” said David Rendimonti, president of LiveWell.
WOWZERS!!!
Interesting stuff. TONS going on behind the scenes!
https://hightimes.com/news/canada-estimates-billion-legal-cannabis-sales-first-three-months/amp/?__twitter_impression=true
Canada Estimates $1 Billion in Legal Cannabis Sales in First Three Months
Adam Drury
Statistics Canada, the organization behind Canada’s census and hundreds of other crowdsourced data collection programs, is predicting that the country’s legal cannabis sales could reach as high as $1.02 billion from the commencement of the retail market on October 17 through the end of the year. StatCan derived its Q4 estimates from census population data and statistics from the National Cannabis Survey. And beyond the remarkable sales projection, StatCan is also estimating a dramatic shift away from the illicit market as consumers mass-transition to legal purchases.
Canadians Could Spend Over $1 Billion on Legal Weed In 10 Weeks
Statistics Canada’s $1 billion dollar sales projection isn’t a yearly figure. Instead, it’s what the organization estimates Canadian cannabis consumers will spend on weed in just the final 10 weeks of the year. And that’s not even what StatCan expects Canadians to spend on cannabis total. The $1 billion figure represents just legal sales. Add on an extra $250 million to $315 million in illegal cannabis purchases. Then you’ve got the complete picture of StatCan’s pot purchasing predictions.
The ever-increasing demand for legal cannabis currently hovers around 5.5 million consumers in Canada. StatCan predicts 1.7 million people will continue to obtain their cannabis on the black market after legalization takes effect. Of course, these are estimates based on surveys and census data. Everything depends on how many cannabis consumers make the switch and how many new consumers legalization brings on board.
Illicit Market Will Still Comprise A Significant Portion of Cannabis Sales
On its own, the $1 billion dollar figure, which could be as low as $815 million, is striking enough. But in context with data from earlier this year, during the lead-up to legalization, it paints an interesting picture. According to Statistics Canada’s annualized second quarter data, Canadians spent $5.7 billion on cannabis products.
But the key to the data is legal vs illegal sales. Of the $5.7 billion (annualized) Canadians spent on cannabis in Q2, 85 percent of it, or about $4.8 billion were illegal purchases. Medical cannabis purchases accounted for the rest. This makes sense, as Canada’s robust illicit dispensary network has been meeting consumer demand ahead of legalization.
But looking ahead to post-legalization forecasts, StatCan is saying illegal sales will drop substantially, from $1.2 billion six months ago to around $300 million after legalization. That turnaround, if it pans out, will mark a tremendous shift in Canada’s cannabis market. Illicit sales could still make up 24 percent or more of total cannabis sales after October 17. But that is of course significantly less than 85 percent.
There do seem to be some small inconsistencies in the data, however. If in Q2 Canadians spent over $1.5 billion on (mostly illicit) cannabis, what’s going to make up the gap between the $1 billion in legal sales StatCan estimates and the paltry $315 million in illegal sales? That’s several hundred million dollars still unaccounted for by the current estimates. Whether that purchasing power continues to feed the black market or redirects toward legal cannabis transactions, we’ll know soon enough.
Canopy’s Linton takes shot at Aurora: ‘People have to learn to run their businesses’
https://www.bnn.ca/1.1139409.1537294020
Marijuana just dominating the news in Canada. Wow.
?B.C. to have only one store selling cannabis on first day of legalization
https://www.bnn.ca/1.1138511.1537225982
Estimates vary, but the consumer CBD market is estimated to grow to US$2.1 billion by 2020, from $202 million in 2015, according to a recent report in the Hemp Business Journal.
It’s getting hot in here....
Nice day today. Sky isn’t falling.
This US stuff I believe is making news to shake week hands...& it did.
Agreed.
Boyah!!!