While in Italy the victory of ‘no’ in the referendum and the resignation of Matteo Renzi frozen, among other legislative proposals in Parliament, also on legalization of cannabis, in the United States the marijuana legal market is claiming the new golden egg hen for investors looking for returns. This is a phenomenon that partly reflects the size of the industry, which in recent years has experienced double digit growth.
A few numbers to better understand. The latest market research report on marijuana in the ArcView Market Research research indicates that the turnover of the major companies in the subfund increased by 17% – reaching $ 5.4 billion in 2015 – and it is estimated that will grow by a further 25% this year, reaching $ 6.7 billion. But this is just the beginning. According to Cowen and Co investment bank forecasts, over the next ten years, sales could generate $ 50 billion. An exponential increase, therefore, is due to the growing number of states favoring the legalization of light drugs.
The last “yes” ball has come on the day of the Election Day: on November 8, Florida and Arkansas legalized the use of marijuana for medical use, while California, Massachusetts and Nevada decided that it is possible to smoke ‘also for recreational purposes. There are now 20 states where, between therapeutic and recreational purposes, the use of cannabis and derivatives is permitted by law.
In line with this trend, it is no surprise that the investors’ arena interested in the industry are getting more and more crowded. There are also many celebrities in the music and entertainment world that have invested in the legal marijuana business, from actor Whoopi Goldberg to folk singer Willie Nelson to rapper Snoop Dogg.
In order to cope with the growing demand, in the last few years, between Ipo, funds and trusts, financial instruments designed to meet the demands of those who want to invest in the sub-fund have come up as mushrooms. Since January 2015, there is even a stock market index, the Marijuana Index, which follows the trend of 23 US and Canadian stocks active in the industry, that is, that of stocks with a capitalization of at least $ 10 million and a stock price higher than 10 cents. A small slice compared to around 200 in the market.
For those who are interested in the business, financial instruments are also lacking, though at least for the time being the most common advice is to adopt a cautious approach: many companies – experts say – are strongly speculative and are likely to disappear quickly, leaving dry mouth potential investors. “There are very risky actions and not all will survive,” said Dan Nicholls, vice president of the Marijuana Index a few days ago, in an interview with Cnbc. Sec Sec, the American Stock Exchange Authority, has called on savers to pay attention to “swindlers” who “often exploit the latest industry, technology or innovative product – such as legalizing marijuana – to attract investors with the promise of earnings “.
Despite the risks, opportunities (nerve permitting) are also lacking. At least according to the Goldman Sachs business bank, which recently confirmed the buy rating on GW Pharmaceuticals, a UK-based company active in the study of cannabinoid drugs, and which stands out in the Marijuana Index with a capitalization of 2.8 billion and a stock quotation around $ 115.
Legal sale of cannabis has also proved to be a success for state funds: Colorado, the first to legalize in 2014 the use of marijuana for recreational purposes – was already a therapeutic option – has become a case. In the fiscal year 2014-15, the ‘spinello tax’ has cost $ 70 million, and it is expected that revenue will reach 135 million in 2016.
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