Thread by @WolfOfWeedST

#Potstocks Thread:
Cannabis market is predicted to hit $43B by 2025.
This number was $29 Billion 5 months ago.
To put growth in context it was $1.3B in 2014
$17.5b 2020
Black Market sales were $66b 2020
forbes.com/sites/irisdorb…

While estimates vary, the spread is not too crazy from 1 to the other.
Some stats...

Yet there is so much left to happen that hasn’t...
cheat sheet:
Safebanking
280e
Rescheduling
Uplisting
Legalization
•interstate commerce

Safebanking-
Long and short:
Access to capital at lower interest rates increases margins, expansion plans, not dilutive as it has been. Already improving
Companies can vault cash in banks vs storing themselves

investopedia.com/safe-banking-a…

280e tax code
cliff notes version is:
Instead of paying taxes like Target at 20% (with 280e would be closer to 81% for target), making normal business deductions they are getting smashed on gross revenue & not deducting like a normal business.

anderscpa.com/how-section-28…

Rescheduling has made sense for years but keep in mind there’s a whole Pharma lobby with billions fighting this. Cannabis should be schedule 4 with:

•Alprazolam (Xanax) 
•Clonazepam (Klonopin) 
•Diazepam (Valium) 
•Lorazepan (Ativan)

Uplisting #potstocks
Access to real money & volume. The payoff here will have a higher alpha than anything in this thread because it is the gas that fuels the engine for all of the intrinsic & extrinsic value above. When this happens liquidity will be flipped to US Co’s from LP’s

Legalization-
I say drag it out but if it happened tomorrow it would take 1-2 years for states to implement due to lots of moving parts. There will be a run up into announcement & a consolidation of companies because it’s an execution/brand story from there. Pt1)

Pt2 legalization-
The companies that botched creation of brands, customer bases in markets they can transition seamlessly in supply chain become devalued quickly due to new paradigm. Good operators merge or get scooped up at premiums depending on where they fall on supply chain

There has literally not been a year in a cannabis bull market where liquidity has stayed as strong as the average from July to February vs March to July. Every year I say it, every year it’s tears. In February I did a 4 hour webinar on hedging/preparing for now. Small clip👇

https://twitter.com/wolfofweedst/status/1381955878190997512

You MUST stay active and play with a core position from July to February 10-20% meaning 80% u don’t touch, 20% you actively trade/manage to lower averages upsize holding just with trading ranges... 30:30 Mark with @timseymour & @GuyAdami from November

With that I will leave u with this:
June is always a brutal month into July, if you’re new get in slowly, when February comes risk off 20-30% or more, no one goes broke taking profit & the discounts will be same next year if nothing changes... and BTDYP
Dawn is coming #PotStocks

Disclosure:
I’m f*cking long US #potstocks and adding the dips with profit from other trades. I will add aggressively on strength will the balance of what I took off in February. $Curlf $gtbif $tcnnf $trssf $crlbf $cchwf $imcc $msos $ayrwf $vrnof

Bonus round in a now deleted tweet Michael Burry (Big Short) seems like a cannabis bull. Now go share this with all ur idiot friends that are sh*tting their pants...