CRLBF - 3 U.S. Pot Stocks That Can Outsell All Canadian Growers in 2020
One year ago today, Canada made history. On Oct. 17, 2018, it became the first industrialized country in the world to officially legalize recreational marijuana. Although monthly sales data on cannabis stores tends to run a few months behind, the existing trend suggests that first-year trailing sales (Oct. 17, 2018-Oct. 17, 2019) will likely come in a bit below 1 billion Canadian dollars (about US$757 million).
This is also a big day in Canada because it's the day when derivative pot products become legal. Derivatives, such as edibles, vapes, infused beverages, concentrates, and topicals, offer considerably more attractive margins than dried cannabis flower. When derivatives finally begin making their way onto dispensary shelves by mid-December, the expectation is that sales will rise significantly for pot stocks.
However, Canada's growing pains right now simply can't be overlooked. A slew of supply problems have significantly weighed on the sales forecast of pretty much every Canadian weed grower in 2019 and 2020. In fact, the forecast now shows that three U.S. cannabis stocks will generate more revenue in 2020 than Canopy Growth, Aurora Cannabis, and any other Canadian pot stock you can think of.