Tired of cryptos? Good. Because I’ve got an old-fashioned investing opportunity for you today.
No mad technology. No blockchain, no ICOs.
Just a product, a market… and a couple of billion pounds’ worth of pent-up demand.
It’s an opportunity which we know for a fact is worth £14 billion.
But it’s strictly off-limits to businesses and investors, until the middle of August this year.
That’s the unusual thing about it. A market this big would normally be super competitive. Companies and investors would be crawling all over it, looking for a piece. But they can’t get at it.
Why can’t they? Well, up to now it’s been illegal to trade in this market. Selling this particular product could land you in prison for a long time.
But in the middle of August, that’s all about to change. The market is about to be fully legalized.
And when it is, there’s going to be a feeding frenzy.
The pot business
I’m talking the marijuana business.
You probably know marijuana legalisation is a big thing these days.
38 American states have at least partially legalised it. Australia’s in the process. Germany and Italy too. 20 countries worldwide are in the process of legalising marijuana.
The market for marijuana in each of the countries I’ve named is worth over £8 billion. And in each country, there will be opportunities in the next year or two to make big sums of money.
But the particular opportunity I’m talking about today — the one which opens up in the middle of August — that’s happening in Canada.
Canada is at the front of the pack when it comes to legalising marijuana.
The drug has been legal for medicinal purposes there for 17 years. Fully legitimate, licensed businesses grow it over there in high-tech warehouses. And the Canadians smoke it in huge numbers.
Now Justin Trudeau’s government wants to go the whole hog. The wheels are in motion to legalise marijuana for recreational users too. And the market for recreational use is around 10 times bigger than for medicinal use.
In other countries, marijuana exists in a legal grey area. Either the growers are just getting established, and aren’t on the stock market yet. Or they’re legal at the state level but not the federal level, as in the US. Canada’s way out in front because it’s been legal there for a long time for medicinal use, and the federal government is on board.
What that means is the companies which had been supplying Canada’s small-but-profitable medicinal marijuana business are now ramping up. They’re about to start churning out tonnes of the stuff — again, 10 times more than they previously sold.
They’re building out new factories, supply chains, retail stores, the works. And one day in mid-August (we don’t have the precise date yet), they’ll roll open the shutters and start selling it to the public.
Like I say, this business is estimated to be worth £14bn. A business this massive would ordinarily be sewn up already. But thanks to the Canadian Government, it’s been closed off to anyone who wasn’t willing to risk going to jail.
But that’s not to say that in five months’ time, there’s going to be a free-for-all. The Canadian Government wants the marijuana business to be legitimate. The growers will all need to be fully licensed and tax compliant.
To invest, or not?
So what’s the best way to get a piece of Canada’s “green rush”?
Well we know that a tidal wave of demand is coming. That part is easy.
The hard part is picking the right supplier. The Canadian Government is worried about this too.
In a recent interview, the Finance Minister of the State of Ontario said, “Ultimately the biggest problem… is one of supply. So we want to make certain that, when we do proceed, there is sufficient supply to accommodate the activity.”
It’s a matter of picking the right marijuana supplier. One with enough scale to get its product on shelves all over Canada. And with the cost structure to eventually dominate the entire market, as the industry starts to mature.
I’ve picked out the best opportunity for Penny Share Letter subscribers. And I’m excited about what’s still to come.
I was telling a group of colleagues in the office about this story recently. I probably lost the run of myself and went on a bit too long, because one of my colleagues interrupted me with a pointed question:
“It all sounds great. But is it suitable for our readership? Will they really want to invest in something like marijuana?”
I have to confess, I don’t know the answer to his question.
I think of my job as bringing you the most exciting investment opportunities on the market. Wherever I find them.
You take those ideas and if they’re useful to you, you put them into action and hopefully make money from them. When that happens, you do well and I do well because you’re happy to subscribe to my newsletter and take my advice.
I don’t presume to judge ideas on your behalf. Some of you may be uncomfortable in choosing to take advantage of this opportunity. Others might not. My job is find the ideas. Your job is to decide what to do with them.
So help me out. What do you think of my colleague’s question? Would you consider investing in this marijuana opportunity? Would you like to learn more about it?
Let me know at email@example.com.