I never expected it to happen this fast…
A couple of weeks ago, I released a report for my Crow’s Nest readers that laid out the top five marijuana companies that were likely to be bought out by Big Pharma, Big Tobacco, and Big Beverage.
I assumed that these takeovers would happen over the next year. I was wrong. They have already started happening.
Two of the companies I mentioned in that report have seen millions poured on them from the exact companies and sectors I predicted. While last week I had a mirthful chuckle when Outsider Club called me the “Prophet of Pot”, this week I’m seriously starting to believe it.
But I don’t want to get too far up my own ass here…
My thesis was simple: cannabis has become so mainstream that large companies were going to start buying smaller cannabis companies to boost their bottom line.
Pharmaceutical companies are basically public enemy number one: they are making headlines every day for killing almost as many people as they are helping.
Cigarettes aren’t selling either — and for obvious reasons: smoking tobacco has killed 100 million people during the 20th century. That is more than both World Wars combined.
Sodas have given way to seltzer water and “functional” beverages. They have helped lead to an obesity epidemic that silently kills almost 3 million Americans a year.
Cannabis, however, has none of the deadly qualities of these other products — but can easily fit into the marketing and product development cycles of these industries.
As they say in the biz — the trend is your friend. And these industries are absolutely going the way of the buffalo, which is what makes marijuana the best place to put your money in 2019…
The first domino fell when Constellation Brands — the giant alcohol company behind international brands like Corona, Modelo, and Svedka — sunk $4 billion into Canopy Growth Corp. (TSX: WEED, NYSE: CGC). It sent the stock soaring.
More recently, Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) entered into an agreement with Altria Group, Inc. (NYSE: MO).
You may know Altria better by its former name, Phillip Morris. Altria manufactures and sells cigarettes, smokeless products, and wine in the United States. It makes Marlboro.
The company ponied up $1.8 billion to collaborate with Cronos to develop cannabis products. Cronos’ stock soared.
And just today, cannabis producer Tilray teamed up with Budweiser maker AB InBev (NYSE: BUD), the world’s biggest brewer, to research cannabis-infused drinks. Tilray’s stock soared.
This is going to keep happening… that’s why you need to read my cannabis buyout report today.
Giant, name-brand companies like Coca-Cola, Heineken, and Molson are in the process of pouring billions into cannabis. Other companies will follow and smart investors need to place their bets on which companies are the next ones to get bought out.
It’s already happening, and it’s happening fast.
Don’t miss out on the next one…
