In this video we’re going to talk about the
three marijuana stocks that I recommend for
2018 and beyond. Stay tuned. Welcome back
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Today we’re talking about a smoking hot industry
and industry growing like a weed an industry
turning a new leaf. OK you get it. I’m done
with the puns. We’re talking about marijuana
stocks to watch for 2018 legal marijuana is
one of the hottest industries since the tech
industry of the early 2000s and investors
are definitely taking notice. Let’s get into
the analysis right now. The North American
marijuana market grew 30 percent in 2016 to
six point nine billion that’s with a b dollars
in gross sales that compound annual growth
rate during that time period is expected to
be 26 percent all the way through 2021.
And if those estimates hold true 2021 we’ll
see sales of twenty one point six billion
dollars. That is huge you guys. It’s over
a 300 percent increase just in a matter of
five years. The heart of this growth is that
60 percent of Americans and a similar number
in Canada are in favor of legalization versus
just 25 percent in 1995. That’s a huge difference.
That’s more than double in Canada. There’s
a strong possibility that they will legalize
recreational marijuana by July 1st of 2018.
And that’s why these pics are so important
today. So pay attention. Number one is canopy
Growth Corporation.
They’re the biggest medical cannabis provider
in Canada in terms of revenue and market cap.
Canopies. Growth has also aggressively expanded
internationally with subsidiary partners in
Australia Brazil Chile Denmark Germany Jamaica
and Spain. That’s a huge international presence.
The stock is up nearly 120 percent so far
in 2017. And check this news out major alcoholic
beverage maker Constellation Brands announced
that in October it was buying a nine point
nine percent stake in canopy growth for 245
million dollars. This is the same company
that owns Corona and other major beer brands.
Constellation is also partnering with canopy
to market a cannabis infused beer. So imagine
when that hits the shelves everybody’s and
begin a little bit tipsy and a little bit
more relaxed than usual. This endorsement
is huge because it gives can it be a legitimate
partnership with an established huge brand
such as constellation.
This is another important fact that I found
I’m going to read this verbatim because I
think it’s very important. The more immediate
play which brings in 7 million dollars cash
is the sale of non core subsidiary Métro
limited to Canibus CARE Canada. This agreement
also enters canopy growth and Canibus CARE
Canada into a three year take or pay supply
agreement with canopy growth for high quality
dried flowers and refined cannabis resin.
With the sale of product it cannot be growth
discretion. This sets canopy in a win win
scenario for the next three years regarding
this agreement. This is the kicker so pay
attention. The real story here is that Canibus
CARE Canada is financially backed by Laborer’s
International Union of North America. This
is North America’s single largest construction
union with over 100000 Canadian members. This
signals that Canibus investing in Canada is
reaching full scale legitimacy with pension
funds diving head deep into the market overall
canopy growth looks very promising for 2018
especially if recreational cannabis is legalized
this summer.
This is one of my long picks and it’s one
of the bigger players in the market that we’re
gonna discuss today. Number two Aurora cannabis.
Aurora cannabis is one of the biggest suppliers
of medical cannabis in Canada. Along with
canopy growth with expansion plans for Australia
in Germany it looks like everybody’s going
overseas where the medical market is looking
to become more and more open and less stringent.
This stock has had a great run with gains
of two hundred thirty seven percent for the
year to date and is fuelled by three major
pillars. The first being growing medical cannabis
industry in Canada and also potentially North
America as a whole.
They’ve had a year over year growth of 39
percent reported for quarter 3. That’s a huge
growth number you guys pay attention to that.
The second pillar to Aurora’s success is that
they are eagerly anticipating the legalization
of recreational use. This is going to more
than double their current user base. Right
now they’re only banking off people that are
using this as a medical therapy if you will.
So once it becomes recreational sales are
going to more than double pretty easily because
I think even occasional users there are going
to be purchasing from drugstores and they’re
going to be purchasing from retailers just
like you would a beer or anything else for
that matter. The third pillar to their success
is their aggressive acquisition and expansion
strategy. They’re in the process of acquiring
canon med therapeutics for four hundred and
fifty five million dollars.
This would actually bring in five more cultivation
centers with capacity to produce 130000 kilos
per year of dry marijuana leaf. So a lot of
people think that supply is actually too high
right now. But again we’re banking on the
fact that July 1st of 2018 recreational use
will most likely be legalized in Canada. So
that’s easily going to fit that supply. And
I think companies are going to be hunting
for smaller companies to gobble up and actually
acquire their means of production to keep
up with that legalized supply and demand.
Number three is a Fria of Fria is up 170 percent
since the beginning of this year with a large
spike recently because of a huge game changing
news. This spike is because they just signed
an exclusive agreement with Shopper’s Drug
Mart shoppers has over 1200 locations physically
and they also have a huge online presence
as well.
They also have over 10 million loyal shop
is this means that these are just the people
with the little card that say hey I shop at
Shoppers let alone the rest of their customer
base which I’m sure is much larger than that.
So with this online presence the physical
presence and also all the big customer base
that they have this is going to be a huge
joint venture for both Fria and shoppers I
believe. And that’s really what’s driven the
stock over the past few weeks of Fria also
is competitive because they have some of the
lowest production costs in the industry meaning
that their margins are going to be very high
meaning that they’re going to be able to produce
when it comes to earnings reports and things
like that which means ultimately the stock
is going to go up.
They also just completed a large sell off
of shares worth 90 million plus dollars. That
means they got cash in return for selling
all those shares at a slight discount than
market rate. So this means that they are well
funded and able to deal with research and
development acquisitions of properties and
also facilities expansions as well. So there
you have it. Those are my three picks for
2018 and possibly beyond. Obviously we need
to see how the legal terrain shakes up and
also how the legislation plays through this
July. However I can tell you right now that
if that does pass July 1st and 2018 a lot
of these stocks are going to see huge 20 30
40 50 percent gains. That’s almost the guarantee
the market isn’t to be so big and so in demand
that I think we’d made him become a tourist
industry.
All joking aside I think that people are actually
going to be traveling to Canada just for that
exact pastime. So with that being said answer
the question of the day below I want to know
out of these three stocks which one are you
buying or are you even interested in marijuana
stocks at all or do you think this legislation
will even pass. Thanks for watching. Again
if you got any value out of this video whatsoever
please hit the subscribe button. And the little
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this again. I want to be talking about personal
finance stocks entrepreneurship and also real
estate investing. Thank you so much for joining
me and have a great day. Shoppers has over
10 million loyalty customers let alone just
regular customers.
These are people that are actually signed
up for their loyalty program. And I think
once this is legalized in July they’re going
to become a lot more loyal they know Saddam
more relaxed when it comes to shopping at
Schutter. So there should be a mutually beneficial
joint program.