Your Secret Backdoor to Cannabis Profits
“A gold mine is a hole in the ground owned by a liar.”
Mark Twain said that. And he knew from personal experience what he was talking about. He tried to make his fortune during the California gold rush and always lost. It must have driven him crazy. He just knew people were making money looking for gold. But he just kept picking one losing mine after another. It wasn’t long before he put up his hands in disgust.
I wonder what Mark Twain would have said had he changed his approach. Let’s say he invested in the firms that sold axes and tools to the actual miners instead. “Invest in the people selling equipment to the miners,” may be the quote that came down to us all these years later. The bad news is that he had to almost go broke before he learned his lesson. The good news is you don’t have to.
Right now, we are smack dab in the middle of another California gold rush. But this time it isn’t yellow its green – the color of marijuana. And guess what? Once again it all starts in California.
The size of the California cannabis market is expected to more than double to $7.7 billion by 2022. That’s just four years away. And the opportunity doesn’t stop there. Thirty-one U.S. states allow the use of legalized medical marijuana, with ten states – and all of Canada – having approved the recreational use of cannabis as well. This is happening right now whether you personally agree with it or not.
You know all that already. You also know that most of the entrepreneurs rushing to get into the cannabis business won’t survive. These are the gold miners.
But guess what? Somebody has to grow all this cannabis folks want to buy. And these growers need fertilizers, lighting systems, irrigation systems and ventilation systems. These are the firms selling equipment to the miners.
Well, a few years ago a boring and well-known lawn care company began to make a quiet play for the booming cannabis industry. They didn’t want Wall Street to know what they were up to, lest other companies started rushing in to snatch the prize away from them. Here we are less than five years later and this boring sleepy company that nobody ever thinks about has become the largest supplier of hydroponics solutions to U.S. marijuana growers. Hydroponic growing is when you grow the cannabis plants without soil.
Think about that for a moment…
This boring, sleepy company that Wall Street never thinks about, and the financial media never talks about, has quietly become the single largest supplier to hydroponics growers in the United States.
That’s a big deal. It means that this quiet, sleepy company that nobody thinks about collects money almost every time you buy cannabis that was grown hydroponically.
Ponder that the next time you smoke some hydro….I don’t partake myself, but if I did, I may think back to the toll bridges I used growing up in Queens, New York.
You see, the only bridge that took us directly from Queens into Manhattan was the Queensborough Bridge. It’s still the same today. That’s the bridge you have to take to get to the city. Now we could drive to Brooklyn and take the Brooklyn or Manhattan bridges. But if you wanted to get from Queens to Manhattan by bridge, you went over the Queensborough Bridge.
Same could be said about growing cannabis. This company is the Queensborough Bridge of growing cannabis. If you want to grow it hydroponically (go to Manhattan), you’re more than likely going to use the most popular company (Queensboro Bridge) to get you where you want to go.
We covered this company in our January issue of Behind the Markets, but I thought today may be a good day to remind you of the opportunity. I think it still has some room to move higher.