In 2016 North American legal weed sales hit U.S.$6.9 Billion Dollars, which is a 34% increase from the year prior. Mark Whitmore, Vice Chair and the Global Leader for Deloitte Private, was quoted saying,“There hasn’t been anything like this — and granted it wasn’t legislated — but you think of the dot-com … flurry,”
Deloitte estimates went even further if you Factor in the taxes, the licensing fees, and weed-related tourism, the market could even be greater than $22.6 billion.
We’ve all heard of companies in this space like Canopy Growth Corp., Aphira, and Aurora Cannabis, some of the hottest names in the business, where investors have seen gains upwards of 500% in a very short time frame, but what other ‘budding’ companies are out there, or is it actually too late?
Mason Brown, an Analyst for M Partners, thinks we are just getting started, “While it may seem intimidating to step in many cannabis stocks at this juncture, their rally will in fact continue”.
Brown says the opportunity of the marijuana sector dwarfs the value of the present rally.
“We expect the rally to continue as the LPs push towards a $7.1-billion market and $32-billion aggregate valuation,” he says. “We estimate the aggregate enterprise value of the industry passes $30B as the Canadian cannabis industry matures, representing a 13.9% CAGR in aggregate industry enterprise value over the next eight years. Although public LPs have experienced significant price appreciation (and private LPs higher financing valuations), we believe the advance is substantiated by the long-term opportunity.”
Mason Brown is spot on with his analysis from what we can see and have researched. Our team has identified 4 very distinct Marijuana Plays, all of which we believe will show tremendous upside opportunity.
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Source: 212 Research