A Pot Stock Extinction Event Is Looming
Pot stocks are beaten down and battered right now. But this is a good thing…
Now, you may think we’re crazy for saying that. But there’s a reason. Well, two reasons, which we’ll get into in a second.
But first, let me explain a little bit about myself.
How I Became America’s No. 1 Pot Stock Expert
Longtime followers know me as America’s No. 1 pot stock expert. I jumped on the soon-to-be booming legal marijuana industry all the way back in 2016, making me one of the first to ever do so.
As one of the most tenured and experienced early movers in this industry I’ve helped folks lock in incredible gains with my exclusive subscription services. These include 125% on the Innovative Industrial Properties, 164% on Players Network, 174% on MedReleaf, 155% on Cronos Group and 404% on Canopy Growth!
My track record speaks for itself. And with many more current positions boasting triple-digit gains, it’s safe to say my followers are making a killing as cannabis investors.
But as the industry matures, now more than ever before, you need an expert to help you weed through the duds to find the next big gainer.
Well, First the Bad News
It’s no secret the entire sector is struggling and more pain could be ahead.
In fact, over the next five–10 years 90% of all pot companies will fail. And we’re already witnessing the beginning of this cannabis extinction event in places like California.
California’s Cannabis Extinction Event
Many of California’s pot growers are facing extinction.
Zero Hedge, for example, reports upward of 10,000 growers could go out of business soon. And that doesn’t include ancillary product producers like edible makers and dispensaries too.
One could argue edibles producers are at bigger risk of shuttering their businesses than growers. Steve DeAngelo, chairman emeritus of Harborside in Oakland, notes to GreenState.com he expects an “extinction event for 75% of the industry.”
Jackie McGowan of K Street Consulting, a Sacramento-based law firm, is even less optimistic. In a Q&A with Marijuana Business Daily:
“I absolutely believe this marketplace will not look the same — it will not have the same set of players, it won’t have the same set of rules — a year from now… the extinction rate will be 90% in the next year.”
Is There Any Good News?
You bet there is…
The coming extinction event (and the drawdown in pot it will amplify) is exactly what we want to see right now.
And this is for two specific reasons. The first we’ve covered quite often. As the selling continues, many of the best names in pot can be bought at wildly low prices.
The second reason is a little more complicated but a lot more telling.
Today we want to introduce a new chart pattern that all new markets face. It’s called the Gartner Hype Cycle. The Gartner Hype Cycle is a graphical representation of a common pattern that arises with each new technology, innovation or industry. The cycle (as it pertains to pot) is as follows:
If this hype cycle looks familiar it’s because we saw the same thing occur during the tech bubble. Wild expectations led to a meteoric rise for many tech stocks. But a lot of the hype was overblown.
The tech bubble burst and the sector fell into a trough of disillusionment. Only a handful of companies survived. For every Amazon, there were two more Pets.coms.
As painful as the drawdown in pot’s been, we think it’s a great thing long term. The companies with bad fundamentals have ridden on the coattails of quality pot investments for too long. It’s time that negative sentiment starts to weed out these weaker stocks, which in turn will bode well for the space long term.
All you need to know is which one will be the next Amazon of pot and not the next Pets.com, but without expert help you’re flying blind.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily