Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Earn 2,200% On This Cannabis Start-Up, Even If Legalization Fails

Published 08/16/2018, 02:19 AM

I’ve seen a certain pattern happen time and again…

And every time it happens, investors who know what to look for make out like bandits.

Here’s how it works: First, a new high-growth industry emerges…

Then, a specific type of investment opportunity presents itself…

And finally, investors who recognize the pattern — and take advantage of it — make millions.

Ready for some good news?

This pattern is about to happen again right now.

The Cannabis Market

The high-growth market I’m referring to is the legal cannabis industry.

You see, the U.S. market for cannabis is already worth $7 billion, and as The New York Times reported, it’s the “fastest-growing industry in America.”

By 2020, analysts predict the U.S. market could be worth $22 billion — and globally, it’s predicted to reach $500 billion.

That’s why USA Today is calling this a “gold rush”…

That’s why People Magazine is writing stories about “Marijuana Millionaires”…

And that’s why right now is the time to make some investments in the industry. Simply put, investors who get in early have the potential to reap huge rewards.

But to be clear, you can’t invest blindly into any marijuana company you find. This industry — and the legal issues surrounding it — are still being hashed out in courts across the country.

Which is why we look for investment opportunities in this sector that are immune to potential legal hurdles.

For example, take a look at the company below…

High Times

In 1974, Tom Forçade launched a publication called High Times Magazine.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Covering a wide range of topics ­­— from cultivation to legalization, from entertainment to food, and from hard-hitting news to “gonzo” journalism from Hunter S. Thompson — High Times soon became the definitive resource for all things related to cannabis.

Its print circulation eventually reached 500,000 copies a month, which put it in the same league as Rolling Stone.

Today, its website, www.HighTimes.com, gets more than 4 million unique visitors a month. And as one of the most trusted brands in cannabis, it attracts major advertisers — especially because big ad networks like Google (NASDAQ:GOOGL) and Facebook (NASDAQ:FB) ban cannabis ads.

The thing is, as we’ve seen time and again, as a big new sector emerges, this is exactly the type of business that can deliver profits for investors. Let me show you what I mean…

It’s the Same Pattern Again…

As important new sectors start to get traction, plugged-in media companies like High Times crop up to track it, report on it, and become its cultural touchstone.

The world of finance had The Wall Street Journal

The Internet sector had TechCrunch…

And Social Media had Mashable.

Then, as the new sector goes mainstream, these media companies can eventually get bought out for millions or even billions of dollars — and their early investors can make a fortune.

For example, The Wall Street Journal was bought by News Corporation for $5 billion…

Mashable was valued at $250 million before being acquired by Ziff Davis…

And even tiny TechCrunch was acquired by AOL for $25 million.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Now this profit pattern is happening again in the legal marijuana sector.

And not only have we identified the company that can be its touchstone…

But we’ve identified a way you can invest in today, before its IPO.

Pre-IPO Profits

As High Times recently wrote, “We have a bit of a reputation for being rebels…”

That’s why, instead of raising money from traditional venture capitalists, it’s decided to raise money from individual investors like you.

Specifically, High Times is raising up to $50 million, with a minimum investment of $99.

To be clear, the valuation for this round is pretty steep: $225 million.

But if this company eventually becomes the size of The Wall Street Journal — and gets bought out for $5 billion — that would hand early investors profits of 2,200%.

Perhaps even more exciting, after raising this round, High Times is planning to list its shares on the NASDAQ — meaning, you can get in before the IPO.

This could be a big deal… it means, if you invest today and the company is successful in listing its shares, you’ll be able to “cash out” fast.

Should you consider an investment?

Let’s take a look…

The Pros and Cons of an Investment

On the “pro” side of the ledger:

An investment in High Times enables you to place a bet on a high-quality cannabis company without worrying about laws and regulations — after all, this is a media company.

Secondly, High Times has proven revenues and profits. It brings in about $15 million a year.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

And lastly, don’t forget about the pattern you learned about today: media companies in fast-emerging sector can get bought out for huge sums!

On the “con” side, however, don’t forget about the steep valuation of $225 million.

If you do end up investing, make sure this is just one of many cannabis investments you make. The key to success in any emerging market is diversification!

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.