Money Morning Defense and Tech Specialist Michael Robinson believes the prices of marijuana stocks are about to soar.
And when Robinson talks about the cannabis market, we listen.
Michael’s been a giant in investing for more than 30 years. As a leading analyst and tech journalist, he’s been on the forefront of just about every major emerging technology story of the last decade.
He’s even been nominated for a Pulitzer Prize.
His privileged access to technology-pioneering CEOs, prize-winning scientists, and high-profile industry insiders has allowed him to consistently give investors huge gains on remarkable breakthroughs, like 3D printing, the mobile wave, and shale energy technologies, well before anyone else.
And he’s turned his attention to pot stocks, because there’s so much money to be made from the marijuana industry.
Legal marijuana sales in North America skyrocketed 49%, from $6.7 billion in 2016 to $10 billion in 2017.
That’s only the beginning.
By 2021, that will climb again to $24.5 billion, an increase of 145% in just four years.
That means if you get in on the cannabis gold rush now, you’re an early adopter.
And early adopters will always make the most money.
For instance, Robinson recognized in 2013 that GW Pharmaceuticals Plc.(Nasdaq: GWPH) would be a great long-term buy.
GW develops prescription medicines using extracts derived from cannabis plants.
Opening on May 1, 2013, at $8.90, GWPH now trades for $145.97 per share. That’s a 1,540% gain in just five years.
Continuing to keep a close eye on the industry, Robinson believes there are now two major reasons why prices are about to soar.
In fact, tiny pot stocks trading for under $5 are getting set to double, triple, or quadruple.
Why Marijuana Stock Prices Are About to Soar
The first reason marijuana stock prices are about to soar is that Robinson believes more people will realize marijuana is an unstoppable force, no matter how much U.S. Attorney General Jeff Sessions hates it.
Sessions rescinded the Cole Memo, a letter sent to AGs during the Obama era saying federal funds should not be used to prosecute businesses that operate in states with legalized marijuana, on Jan. 4.
But Robinson believes Sessions’ bark is worse than his bite.
“As more time goes on and Sessions makes no major cannabis busts, folks will realize that in reality little has changed,” Robinson said.
You see, David Freed, the U.S. attorney for the Middle District of Pennsylvania, has implied that he’s not making prosecuting marijuana businesses that comply with state law a priority.
“While I cannot state that there will never be an issue in this area meriting federal involvement, my office has no intention of disrupting Pennsylvania’s medical marijuana program or related financial transactions,” Freed said in a Jan. 4 press release.
And many other AGs share his sentiments.
As more investors catch on that the $10 billion marijuana industry is too big for Sessions to stop, the money will start trickling in from retail investors.
The second reason marijuana stock prices will soar is because New Jersey, Arizona, and Delaware could all have measures for some form of legalizing cannabis on their ballots in 2018.
This will bring in more revenue, and Erik Knutson, CEO of Keef Brands, believes New Jersey will become the second-largest marijuana market, next to California.
More sales will increase revenue for marijuana companies, which will attract new investors.
“As that happens, the more cannabis shares will rally,” Robinson said.
*This has been a guest post by Money Morning*