PREDICTIONS FOR THE NEWYEAR
also gain access to the NYSE and Nasdaq. This will open these stocks up to many more investors – including institutions that cannot legally own them today. Some pundits believe this move alone could double or triple the current share prices of good cannabis stocks. Consolidation . With cleaner access to banking and the capital markets, larger cannabis and consumer-product companies will begin to consolidate the market. The well-run companies will get bought up at premiums. This will be a very good investment thesis for cannabis investors. Picks and Shovels . As the entire industry receives regulatory relief, cannabis servicing companies will grow exponentially. This means obvious things like packaging, labels, and distribution. But all other aspects of business services will get a boost. Like payroll services, operating software, and accounting services. An entire new bolus of economic activity will emerge on top of what is currently estimated to be a $50 billion U.S. market. New Health Care Weapons . Most importantly, we will have new tools to manage our most important asset – our health and wellness. Pharmaceutical and biotech firms will accelerate research into the many compounds of the vast varieties of cannabis plants. This will provide rapid answers to the anecdotal evidence that has been building for decades. A new cancer drug? Relief from debilitating mental illnesses and Alzheimer’s? Therapies for seizure and movement disorders such as epilepsy, multiple sclerosis, and
THOMAS CARROLL CANNABIS CAPITALIST
Here are our Top Five cannabis investing themes that should dominate the market in the next few years... Access to U.S. financial markets and tax policy. Legal cannabis businesses will soon be permitted to use local or national banks just like any other business. This will be immediately accretive to cannabis companies. (Today, they must negotiate a patchwork of banking services from regional banks that are not insured and provided at astronomical fees.) Additionally, cannabis companies will be able to make business deductions like any other business. (Currently, they cannot and have much higher tax rates than other businesses of the same size and structure.) These operating costs will fall dramatically and directly increase the bottom line. Access to U.S. stock exchanges . Legal cannabis companies that are traded on foreign exchanges or over the counter in the U.S. may Right now is truly a great time to be involved in cannabis, as an entrepreneur, lawmaker, investor, or otherwise.
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January 2021
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