Last week I shared a list of 6 cannabis stocks I expect to profit from the legalization of recreational cannabis in California.
This week I am going to take a deeper dive into one of my favorite stocks from the list.
This is a good stock to profit from California
It's also a broad play on the US cannabis sector
Third-quarter sales were up 86% from last year
Shares just spiked into a 52-week high
I see plenty more gains ahead.
GrowGeneration (OTC:GRWG) is a US cannabis company headquartered in Denver, Colorado.
Shares are traded in US, OTC markets under the ticker symbol GRWG.
GrowGeneration owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 13 stores, which includes 9 locations in Colorado, 2 locations in California, 1 in Las Vegas and 1 location in Seattle.
Cannabis stocks have a huge event directly on the horizon. In fact, it's the most important event of the last 12 months and I expect it to send a certain group of cannabis stocks soaring.
On January 1 California will become the latest - and largest US state - to legalize recreational cannabis.
This is easily the most important event in the cannabis sector in the last 12 months. And I expect it to be a huge catalyst for cannabis stocks for two reasons.
1. Billions In New Sales:
California is already the largest cannabis market in the world - by a long shot. Its legal and illegal cannabis market did around $8 billion in sales in 2016 - with 75% of that from illegal sales. Recreational is expected to quickly chip into illegal sales and grow into a $4 billion annual market within a few years, from basically $0 today. That is a potential revenue and profit windfall for cannabis companies ready to capitalize. I expect this to be a strong tailwind for US cannabis stocks in general and particularly ones operating in California's high -growth market.