Patrick Iturra Report, EIG Asset Manager
Over the past 24 years, I have been actively working as a strategic investment advisor, and I am here to help you!! In the following section, I will share my perspective of the future of the cannabis industry with an investor’s perspective. Now, Let’s cover these in detail to understand this better!!
The following blog came as an idea based on a recent study that involved Cannabis and the Covid-19 virus.
During a recent study, it was seen that cannabis compounds prevented the coronavirus from getting into the human body cells. This is great news for cannabis lovers/investors keen on investing in Cannabis ETFs, plantations, etc.
Good News for Cannabis: A Major Breakthrough for CoronaVirus Treatment
Here’s what happened: Cannabigerolic acid (also known as CBGA) and Cannabidiolic acid (also referred to as CBDA) showed significant potential to fight against coronavirus. The Oregon State University research says that these compounds spike the proteins present in the virus strain. As a result, it stops the pathogen from infecting people.
During the test, both the alpha and beta variants of the virus were put to the test in a laboratory. There were no supplements/products involved! No medications/enhancers were given to the people to compare infection rates.
As we know, Hemp is an excellent source of fiber, food, and animal feed, and it is an active ingredient in a wide range of beauty and dietary products.
What makes this study ground-breaking is the fact that these products are safe to use for the long term! Also, scientists have claimed that it might be practical to treat infection of SARS-CoV-2 as well! It is an evolution to coronavirus prevention and treatments.
Here’s the complete report https://pubmed.ncbi.nlm.nih.gov/35007072/
This is Big! This might play a significant role in the further adoption and usage of Cannabis in medical science. Overall, it can be a multi-bagger opportunity for investors.
But, let’s look at a quick legal history of Cannabis.
The History of Cannabis in the U.S.
Cannabis has its controversies and legal troubles in the U.S. In 1906, Cannabis was termed as poison across multiple states and strictly restricted in the 1920s. By the late 1930s, Cannabis was categorized as a drug in 35 states under the Uniform State Narcotic Drug Act.
In 1970, Cannabis was again officially banned under the Controlled Substances Act(CSA). Since then, multiple efforts have been made in the U.S. Supreme court. Despite this, numerous states and other jurisdictions have continued to implement policies for Cannabis. By 2016, most states have legalized medical Cannabis for recreational purposes. By 2021, Colorado and Washington legalized medical Cannabis.
Now let’s look at the growth of the cannabis industry!!
Cannabis industry: Future & Growth
Over the period, the cannabis industry has been getting a lot of approval & votes from people in state legislatures. As of now, 48 states passed laws allowing Cannabis for medicinal & adult usage.
This is something that every cannabis enthusiast should know; how they can make the most of this ongoing boom in Cannabis.
I have dedicated the entire section of the guide for investment in the cannabis industry to make it easier. First of all, let’s see why you should buy cannabis stocks?
Why Should Investors Buy Cannabis Stocks?
Cannabis stocks have been going up and down for the past few months. This is due to the global bear market, where all tech, gaming, E.V. sectors have also seen a dip! The minor drop in prices is not bad because the top cannabis companies have shown a growth of 10-15%.
Although the cannabis industry still faces many legal issues over time, this also impacts the stock prices from time to time. It increases the risk to capital markets and invites more institutional investors to the cannabis sector.
As a strategic investment advisor, I would say that an investor should see this as an opportunity to make a profit.
Investors should view this pullback as an opportunity since the decline in prices is not based on fundamentals such as growth, cash flow, or profit margins.
Here are some cannabis stocks that investors should consider:
- Curaleaf Holding (CURLF)
- Cresco Labs (CRLBF)
- Green Thumb Industries (GTBIF)
- TerrAscend Corp. (TRSSF)
Invest in Cannabis ETFs
Most of the Cannabis ETFs are passively managed, but they get rebalanced quarterly. An actively managed fund will buy & lower its holding in cannabis stocks. This creates a new opportunity for Fund managers to profit by selling the stocks at a higher price.
Over the period, the number of Cannabis ETFs has increased as multiple cannabis companies have gone public! Therefore, cannabis ETFs are an ideal option for all investors; Who does not want to do any research on individual companies.
Start a Cannabis Plantation: Invest in the new Green Gold!!
As I have already explained, you can invest in cannabis stocks and an ETF; But there’s something else that you need to consider to invest in cannabis plantations.
You can become a supplier of Cannabis to all big companies that use your products for medical and recreational purposes.
Starting and running a cannabis business is different from any other traditional business. You might encounter a lot of hurdles from financing, research, marketing, operations, etc.
You need to study the market and your state regulations to ensure that you go with the right approach without breaking any law!
Also, as a cannabis supplier, you need to consider the following:
- EMployee training.
- Maintaining compliance standards.
- Removal of waste.
- Logistics for packing, processing, and transportation.
- Build a facility for operations and production processes
These are some of the factors you need to consider while starting a cannabis plantation. Investing in green gold will help you to leverage the potential of Cannabis in the future!
I am here to help you – Invest in green gold today!!
Now, I am here to help you with the cannabis business. I have been working as a strategic investment advisor for 24 years. I have helped my clients generate long-term wealth.
Using my experience, I will help you invest in Cannabis or build & develop your own cannabis business.
If you have any ideas for cannabis investment, you can contact me here! I will dedicate all efforts to ensuring that your business becomes a success.
EIG Asset Manager, I monitor my investors’ property performance and maximize their real estate income. My job involves leading your real estate investment company’s construction, operations, and leasing teams to ensure optimal value for each asset. FALLOW