Publisher's Note: We're fortunate enough to have access to the legendary Mr. James Dines and his renowned research. Mr. Dines is "The Original Pot Bug" and took a bold stance early on, leading to massive gains for the readers of The Dines Letter.
Now that the Canadian legalization process is complete and several more states legalized recreational (Michigan) and medical use (Utah and Missouri), it is time to look forward.
Here is an excerpt from the October edition of The Dines Letter.
To your wealth,
Nick HodgePublisher, Outsider Club
As "The Original Pot Bug," October 17, 2018 was a glorious moment, to pause and savor, as our longstanding prediction of large industrialized nations going legal on cannabis has begun to come true in Canada!
We luxuriated that we had a GREAT OPPORTUNITY to get a "slice" of the historic rises in the charts, depending on when you got in, or out. Just look at those droolingly handsome potential profits.
Nonetheless, we can barely resist the Low State of Comparing, as America could have easily sprinted into legality before Canada, but Washington's anti-pot stance was too entrenched - mistakenly so, we believe, which is why we had always expected the laws to be changed.
Many sincere people are against pot because of the unknown health effects, also that kids might use and abuse it. Fair enough. However, teens were the ones who were way ahead of the adults, who then embarrassedly lumbered after them, often for "brownies" that tasted unusually good. Besides, teens have already moved on from pot to vaping.
That's right, The Low State of Supressiveness has induced kids from non-addictive pot to the infamously addictive vaping of nicotine. Suppressiveness too often results in a worse result than what had been suppressed. Indeed, some tiny vape devices the size of one cigarette have the nicotine equivalent of a full pack of cigarettes! We call this "The Coming Vaping Scandal," and we predict it will evolve from almost unnoticed to swarming over the world's headlines. Probably very soon.
Please be clear that we personally are negative toward smoking anything, as it's an insult to the beautifully clean lungs we were all given. But we must share our predictions as we perceive them. We just work here. We are hereby yet again defiantly the first to make this prediction: pot-toking adults will eventually pressure kids to switch from vaping nicotine back to pot, believe the unbelievable or not!
So what's next? Now that Canada's legal pot is a fact, we're expecting a normal profit-taking pullback near term, although longer term, pot stocks should go far higher. Because "The Coming Pot Boom" is only beginning, and we predict it will spread to every corner of the planet - as did Coca-Cola's soda water, once upon a time!
In fact, the internationalization of pot has already begun. Indeed, Althea, a tiny medical-marijuana firm in Australia, raised AU$20 million ahead of listing, then its market cap promptly soared to over AU$40.6 million. It will grow its own marijuana, but also receive supply from Canada's Aphria (APHQF)(APH.TO), which owns 25% of the firm. It shows Canada is expanding worldwide in its effort to benefit from "The Coming Pot Boom."
The weed bull market we envision will eventually be big. Very big. As "The Original Pot Bug" we are as certain of that as we can be at this very moment. We sense that pot will be infused into almost every kind of drink, from sodas to liquors - yes even into tobacco products. And great benefits will come from medicines derived from the marijuana plant, helping humankind magnificently - mark our words. So pharma pot stocks will do well, albeit deucedly difficult to pick the right ones so far, and we're still hunting.
Our favorite, Canopy (CGC)(WEED.TO), has performed brilliantly, having risen 2,569% from $2.22 to as high as $59.25. But the large liquor company Constellation has been buying into Canopy, and will soon fold it into its orbit. Indeed, Constellation plans to sell off its wine brands and focus on cannabis and beer! This is a forerunner of major American companies going to pot.
Which pot stock to buy now? We are coming to the crucial moment in new bull markets of an abundance of opportunities, varying ways to play a planetary upheaval, and we have several in mind as new ones sprout like mushrooms in a forest after a rainfall. We are studying the sudden emergence of all these new weed stocks, and hunting for the ones with the most potential.
Cannabis legalization will keep accelerating even after the election. You doubt such a spread of pot? Around 1994, your editor dared to predict "The Coming Death of the Middleman." We even recommended Amazon stock at $4.77 (adjusted for splits) on 9 Feb 98, believed by nobody else in the world of whom we were aware - Amazon was publicly ridiculed for soaring with no visible earnings. This month, giant Sears has followed iconic Toys "R" Us into bankruptcy, like felled giant redwoods.
Even the situation of the many pot stocks suddenly appearing reminds us of when we turned bullish on the internet, and became "The Original Internet Bug" before so many internet stocks began to emerge and flourish that we had trouble figuring out which ones to recommend; especially since some of those companies were started by kids operating in their parents' garages. In any new bull market it's especially difficult to figure out who the big winners might be because managements are still setting up their companies, and who knows which ones might become the most successful?
Weed will spread like wildfire, and those who are not early will be too late, just as with the internets. One smart way to approach it is to take half of positions on a dip and then hope for a larger decline during which to invest the remainder. Never test the water with both feet!
James Dines is legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He is the author of five highly regarded books, including "Goldbug!," in addition to his popular newsletter, The Dines Letter, and videotaped educational series. Dines' highly successful investment strategies have been praised by Barron's, Financial Times, Forbes, Moneyline, and The New York Times, among others.