There are numerous ways to measure product uptake. Tens of thousands of books are sitting on business school library shelves across the world with documented techniques on how to assess the distance a product has traveled into its life journey. Sometimes, however, it’s just obvious that something big has started and is on the precipice of being far bigger — no books required.
Cannabis is one such industry, with all the signs indicating that weed may play out to be one of the biggest investible megatrends of our lifetime…
In October 2018, Canada fully legalized the adult use of recreational cannabis, the first major western country to do so on a national scale. This is why many of the pure-play cannabis stocks we see today are only listed in Canada.
Closer to home, marijuana remains illegal at the federal level in the U.S. but is legal for recreational use across 10 states (plus the District of Columbia) and medical use in 33. Products derived from industrial hemp are allowed under the Farm Bill, though the US CBD supplements market is highly fragmented, with only two brands capturing more than 2% of the market.
All in all, it’s still very early days for investing in weed and therefore you need to be aware that doing so carries a higher risk-reward profile than with industries that don’t have to navigate changing laws per country and jurisdiction. But, with all this considered, there are two weed stocks out there that we really like and think could happily live in a healthily diversified portfolio.
For now, you’ll find neither of these in our MyWallSt app because of their extremely high-risk profile, though they might make an appearance in the not too distant future.
Commonly referred to as the Apple of cannabis, MedMen Enterprises (CNSX:MMEN) is a U.S.-based cannabis company that’s listed on the Canadian Securities Exchange (CSE). And since we’re making comparisons with Apple, MedMen’s Californian stores actually had a higher ‘sale per square foot’ ratio than Apple stores in their 4th quarter last year — averaging $6,257 per sq.ft.
They have more than 1,000 employees, operates 35 operational stores (with plans to hit 50 by the end of the year), and are focused on the self-proclaimed ‘five key states’ of Arizona, California, Florida, Nevada, and New York.
There’s a lot to like about this company, but what has caught our eye most was MedMen’s…
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