Contributor: KC Scannell
Without question, the cannabis industry is amongst the nation’s most profitable endeavors in decades. The overwhelming demand for cannabis, of all kinds, only continues to grow with the acceptance of marijuana slowly dominating the country.
From coast to coast, we are seeing more states turn over their long-held, misguided opposition to cannabis. Some have only allowed medicinal marijuana patients to enjoy the natural herb – with a doctor’s recommendation, of course. While others have put the pedal to the medal and legalized recreational cannabis across the board. And even though some states still limit themselves to med-only (or no legalization at all), the signs of a nationwide acceptance of all things cannabis looks like it’s closer than ever before.
Here Are Some Of The Most Profitable Marijuana Stocks
To be honest, this has been a year full of victories for those in the cannabis industry. The first notch in the win column came with the passing of the SAFE Act. This piece of legislation, which is short for the Secure and Fair Enforcement Banking act, was a historic success for marijuana advocates everywhere. Until this was voted on and passed, no sort of cannabis-related reform had ever even made it to the floor for a congressional vote like this.
For those unaware, this Act eliminates the possible penalties that credit unions and banks would’ve potentially been subjected to, had they provided services to any sort of cannabis-related business – even if they were operating in a fully legalized state. This was obviously a federal “F-U” to any bank who wanted to help an entrepreneur in the cannabis industry, but advocates were able to remedy that situation, and it wasn’t long before another marijuana-related piece of legislation made its way to the House Judiciary Committee.
This piece of reform was called the MORE Act, which is short for the Marijuana Opportunity, Reinvestment, and Expungement Act. This particular piece of legislation still hasn’t gotten an official vote on the floor just yet, but if it does, it would effectively decriminalize cannabis in every way, shape, and form for the entire nation. Even though it hasn’t reached the floor for a full vote yet, it still serves as a testament to how this country’s view on cannabis is rapidly changing for the better.
One of the more recent states to take cannabis under its proverbial wing is the midwestern haven, Illinois. This region of the country has already allowed its residents to acquire a medical marijuana license and whatnot, but come January 2020, they will officially legalize recreational cannabis. And experts are already projecting some seriously impressive revenue numbers, should everything go according to plan. With some reports placing them in the top five cannabis states, in just a few short years.
While it remains to be seen just how profitable Illinois will be with the implementation of recreational cannabis, one thing is for sure – people are ready to invest as much as they can in this booming industry. And, like many other states that are still in the infancy of legalization, some of the biggest financial gains can be enjoyed during the first few quarters. Some economic studies have revealed that the cannabis industry in Illinois will exceed a billion dollars damn near instantly. So it stands to reason that a healthy amount of people will want to get their slice of the pie, as they say.
But just because a company is in the marijuana industry, doesn’t necessarily mean it’s going to make you rich beyond your wildest dreams. Just like any other industry, it’s vital for one to do their due diligence and research before forking over any sum to a company as an investment.
One company, on the smaller side of things, that’s worth looking at is Acreage Holdings. This company, in particular, has a growing popularity amongst cannabis enthusiasts in Illinois, with a few stores sporting a decent amount of repeat business. The main downside to this investment, however, is how disperse their company currently is. At the moment, they have similar set-ups in 20 different states. So, to say that they are spinning a lot of plates right now would be an understatement.
This makes it hard to discern just how high on the priority list they’ll place Illinois. Chances are, they’ll just keep a lookout for other states to pass legalization, so they can get in on the ground floor with them. This makes some sense from a business standpoint, but they are likely too spread out with investments, and some changes to their business model are probably going to need to happen in order to fix that situation.
But, perhaps, that’s just me being pessimistic.
There are a few other companies that are noteworthy when discussing where one should invest their money in the Illinois cannabis industry. The first one is called Curaleaf Holdings. This collective is the largest of its kind in the country. And, recently, they acquired a company by the name of Grassroots, who is one of the top players in the Illinois cannabis industry right now.
The next two suggestable stocks kind of go hand-in-hand, to be honest. They are Cresco Labs and Green Thumb Industries. Both of which sound like ideal contenders to strike it rich in the marijuana industry. Both of these companies are what people in the know call “MSOs.”
Which is just a shortened version of “Multistate Operators.” While they have their money invested in other regions of the country, they are both looking to hit the maximum number of legally allowed storefronts in Illinois, once recreational cannabis use goes into effect.
Obviously, this is just a small sample size of companies that are looking to throw their hats into the recreational cannabis ring when January 2020 rolls around, but it’s important to educate yourself on all potential money-makers before any bud gets sold in the new year. One thing to consider, however, is how different townships and cities can vote to oppose the opening up of a dispensary within their city limits. If they don’t want anything to do with the cannabis industry, they can vote to keep those businesses out for good.
So, just because a company has a lot of opportunities to open up retail locations, doesn’t necessarily mean they’ll be able to do so wherever they want. They could encounter a problem such as the one I just described, which would effectively toss a wrench into their whole business model.
But, seeing as how these companies are proven professionals, they likely have a foolproof way to deal with just such an occurrence. Hopefully, the backlash will be minimal; that way, the majority of cannabis enthusiasts will be able to enjoy their herb in their own neck of the woods without having to complete a lengthy commute.
The bottom line is that a lot of money is about to be made in 2020 and beyond, and Illinois will be able to redistribute these funds amongst a list of good causes and inner-city programs. All of which are specifically designed to help improve the overall quality of life for citizens who happen to live in these areas. The future is bright for Illinois, and the rest of the cannabis community is eager to see just how profitable this state can be.
