December 2nd Surprise: The $444 Billion Opportunity You Can't Afford to Miss

Published 9/6/2024

Welcome aboard, savvy investors!

Get ready for some groundbreaking opportunities that could revolutionize your portfolio.

Today, we're diving into a sector that's on the cusp of explosive growth - one that's been simmering under the surface, waiting for its moment to shine.

Imagine an industry poised to disrupt multiple markets simultaneously - from healthcare to consumer goods, and even agriculture. We're talking about a potential goldmine that's been largely untapped due to outdated regulations.

But the winds of change are blowing, and smart investors who position themselves now could reap enormous rewards.

Let's talk numbers.

According to Fortune Business Insights, this burgeoning market is projected to reach a staggering $444 billion by 2030, with a compound annual growth rate (CAGR) of 34%.

That's the kind of growth that turns heads on Wall Street.

And here's the kicker - we could see a major catalyst as soon as December 2nd.

With elections around the corner, there's a real possibility of sweeping changes that could send this sector into overdrive. It's a hot-button issue that's gaining traction across the political spectrum.

Mark your calendars for December 2nd, because that's when the Drug Enforcement Administration (DEA) is set to hold a pivotal hearing that could reshape the entire landscape of this industry.

The DEA will be considering expert opinions on the Justice Department's proposal to federally reschedule marijuana from Schedule I to Schedule III under the Controlled Substances Act.

This isn't just bureaucratic shuffling - it's a seismic shift that could unlock massive potential for businesses in this space.

Why is this so important? Rescheduling would remove significant research barriers and potentially allow state-licensed cannabis businesses to take federal tax deductions under the IRS code known as 280E.

While it wouldn't fully legalize marijuana at the federal level, it would be the most substantial reform in over 50 years.

The hearing adds some uncertainty to the timeline, but it also signals that we're on the cusp of a major policy shift.

This is why we’re rushing to share with you these two cannabis stocks:

Canopy Growth (CGC)

This isn't just another player in the field - it's a titan in the making.

Back in 2018, Canopy was the darling of Wall Street, boasting a market cap of $17 billion or nearly $600 per share post-split.

Fast forward to today, and we're looking at a market cap of just $500 million. Now, before you run for the hills, hear me out.

This isn't a story of failure; it's a setup for an epic turnaround.

Our conservative price target of $50 per share would represent a 10x return from today's price. And get this - even at that level, we'd still be 90% below Canopy's peak valuation.

We're talking about a potential 10-to-1 risk-reward ratio. In my book, that's the kind of asymmetric bet that can supercharge a portfolio.

With strategic partnerships already in place, Canopy is perfectly positioned to capitalize on the inevitable merger of recreational and mainstream markets.

Their product pipeline is robust, spanning medical applications, recreational use, and even pet care.

Canopy's management team is another key factor in our bullish outlook.

Led by industry veterans, they've demonstrated a knack for strategic acquisitions and partnerships that have expanded their footprint globally.

As international markets open up, Canopy is primed to leverage its first-mover advantage.

Their recent moves in the European market, particularly in Germany, could prove to be a masterstroke as the continent inches towards more progressive policies.

But perhaps most exciting is Canopy's focus on innovation.

They're not just waiting for legalization - they're actively shaping the future of the industry.

From developing new strains to exploring novel delivery methods, Canopy is laying the groundwork to dominate multiple segments of this emerging market.

When the floodgates open, they'll be miles ahead of the competition.

Moving on to our second pick:

Aurora Cannabis (ACB)

Let me tell you, this company is a dark horse ready to burst out of the gates.

While it’s flown under the radar of many investors, those in the know recognize Aurora's potential to become a global powerhouse.

Now, here's where things get really interesting. Just like Canopy, Aurora’s market cap peaked at $9 billion back in 2018, or a jaw-dropping $1,500 per share post-split.

Fast forward to today, and we're looking at a market cap of just $300 million.

But here's the kicker: Aurora is cash flow positive and fundamentally strong. That's right, while others are burning through cash, Aurora's already turning a profit.

Now, our conservative price target - and I mean conservative - of $60 per share would represent a 10x return from today's price.

Even at that level, we'd still be 95% below Aurora's peak valuation. That’s another potential 10-to-1 risk-reward ratio.

That being said, their production capacity is second to none, with state-of-the-art facilities that can churn out premium products at scale. This gives them a crucial edge in what will undoubtedly become a price-competitive market.

What truly sets Aurora apart is their laser focus on medical applications.

While others are scrambling for recreational market share, Aurora has been quietly building a moat in the medical field.

They're not just selling a product; they're pioneering treatments that could transform lives.

With ongoing clinical trials and a growing body of research, Aurora is positioning itself at the forefront of a medical revolution.

When mainstream acceptance hits, they'll have the credibility and infrastructure to dominate this high-margin segment.

Don't overlook Aurora's international strategy, either.

They've cast a wide net, establishing footholds in key markets across Europe, South America, and Australia.

This global diversification not only spreads risk but also ensures Aurora can capitalize on regulatory changes wherever they occur first.

As dominos start to fall around the world, Aurora will be uniquely positioned to serve emerging markets with locally produced, high-quality products.

HOW WE’RE POSITIONING OURSELVES

Let’s consider $1,000 as our standard ‘full position’.

When we suggest a ‘starter position’, we’re talking about $250, or a quarter of a full position.

For CGC and ACB, we’re not advising a full position right now.

However, we want to ensure we have some exposure to capture potential future gains.

So, for the time being, we recommend initiating a starter position in CGC immediately at $4.51/share and ACB at $5.36/share.

Next, we’ll set Limit and Stop Buy orders to buy the dip should the price go lower and ride the momentum upwards before these stocks break out to new 52-week highs in the coming months.

Thank you so much for joining us on this investment journey.

We'll be diving deeper into more exciting topics in future newsletters.

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We’re looking forward to continuing this journey with you.

Until next time, stay curious and invest wisely!

Zack & Alex

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