Legal Weed in Illinois!
Pot stocks had a rough 2019.
Many investors took big losses. It’s only normal many are skittish about pot’s profit potential.
But even as this sector bounced along the bottom last year, we were able to find some big gains. You can read up on those companies here.
Most importantly, sentiment continues to sway in favor of federal legalization and I believe it’s only a matter of months before we see some form of federal legalization take hold.
2019 was pot’s reset button. Now we move forward into the new year with a clean slate.
Off to a Good Start
Pot stocks are kicking off 2020 with a nice jump. Only 365 more days to go (it’s a leap year), so let’s temper our excitement for now. But up is better than down and we’ll take what we can get.
The cannabis market still needs to find its footing, but when it does pot stocks could once again start pumping millions into fast movers’ bank accounts.
For now, though, the sector continues to follow the same cycle many other hyped-up markets have followed in their early years. That cycle is the Gartner Hype Cycle. I’ve covered this phenomenon in depth along with warnings to my followers that a cannabis extinction event was looming, here.
Simply put, a down year was due. The market needed to cool off and the overhyped sensationalism some bad actors injected into the narrative needed to get exposed.
Moving into 2020 we have a lot to look forward to.
In fact, to kick off the new year, one of the most populous states in the nation has gone legal.
Legal Weed in Illinois
Recreational, adult-use marijuana is now legal in Illinois.
The Chicago Tribune reports:
Across the Chicago area, thousands lined up — some before dawn — for a chance to buy marijuana legally for the first time. The day featured long lines, a few glitches — and lots of happy customers.
Sales began on Jan. 1, 2020, and according to Marijuana Business Daily, early estimates suggest Illinois could see up $2.5 billion in annual sales.
According to multiple news outlets, lines at dispensaries extended for blocks. One report from the Chicago Sun-Times notes:
NuMed Chicago near West Town had to turn away about a dozen customers about 30 minutes before closing at 7 p.m. due to the sheer volume of people visiting the store.
Only those who had checked in at the dispensary around noon and waited several hours could get inside to be served.
A very good sign for this market.
As investors, this is also a good sign. The number of licenses that Illinois will issue is small. Marijuana Business Daily notes:
The maximum number of adult-use dispensaries allowed in Illinois in 2020 is 185, or 1.5 retail stores per 100,000 residents. By comparison, Oregon currently has 15.7 recreational marijuana retailers per 100,000 residents.
Source: Marijuana Business Daily
This means only a few companies will be able to tap into that expected $2.5 billion in annual sales.
And that could bode well for select stocks too. I’ll be digging in deep this week to see who is setting up shop in Illinois this year.
More on this and the opportunity it offers coming soon.
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Chief Technology Expert, Technology Profits Daily