JohnCM Investment Corner

[JohnCM]

Bloomberg

With New Lobbying Clout, Big Pot Has Arrived: Cannabis Weekly

Big Alcohol and Big Tobacco have garnered a formidable reputation in the lobbying arena over the years. Big Pot is now looking for a piece...

JohnCM -

Why Cannabis?

I have followed the Cannabis sector for over 7 years. There are now 3 solid reasons to look at the Cannabis sector in regard to your investment portfolio.

Number one - MOMENTUM

States are falling like dominos legalizing marijuana for recreational use. Throw in the Biden win, and this is a trend that cannot be stopped.

Number two - PROFITABILITY

cannabis companies are reporting net profitable quarters. Look what happened to Tesla when they reported their first profitable quarter. Two companies of note, Trulieve and Cresco.

Number three - The ARBITRAGE play (Buy Out)

American companies, wanting to partner with or purchase Cannabis companies, have to stay at arm’s length from Cannabis companies because marijuana is a schedule one substance (the most dangerous), and it is illegal federally.

When the fed loosens its grip and/or marijuana is legalized federally, BIG business will rush in to swoop up already established Cannabis companies at a premium. BIG tobacco, BIG liquor, BIG beverage, BIG pharmaceutical, BIG leisure, retail grocer, health food and nutritional companies.

BIG TOBACCO
BIG LIQUOR
BID RETAIL
BIG NUTRITION
BIG PHARMA
BIG BEVERAGE

MJ tailwinds

#1. State dominos are falling for legalization. Arizona. Florida next?
#2. First time House votes approvingly on legalizing marijuana.
#3. President and vice president-elect Biden and Harris are pro-cannabis.
#4. U.S. MSO's (Multi-state operators) are starting to report net profitable quarters.
#5. MOMO (momentum).
#6. Democrat control of the Senate.