The cannabis industry has had a fantastic year, even if that’s not being reflected in the share price of most marijuana stocks of late.
In October, our neighbor to the north became the first industrialized country in the world to give the green light to recreational marijuana. In a few years, when the industry has had time to expand its capacity and lay the foundation for additional sales channels, it could easily be bringing in $5 billion or more per year. And if these revenue estimates prove accurate, at least some pot stocks will walk away with a boatload of profit.
This would, arguably, be the most exciting IPO of 2019
But with 2018 and its numerous history-making moments almost in the books, attention now turns to what 2019 might bring for the cannabis industry. Most industry pundits are looking for a continued emphasis on consolidation, a growing focus on expense management (since earnings reports actually matter now), and a push into alternative cannabis products. The latter is especially worthwhile, with the Canadian Parliament expected to review and approve additional consumption options (e.g., edibles, vapes, concentrates, and cannabis-infused beverages) in the upcoming summer.
As for me, I’ll be keeping my eye out for what would arguably be the most exciting initial public offering (IPO) of the year, assuming the company wants to go public.
While “most exciting” is a purely arbitrary phrase, I’m intrigued by the thought of San Francisco, California-based Eaze going public…
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