This Controversial Trend Is Going Mainstream
Why we've changed our minds about cannabis... 2018 was an important turning point... This controversial trend is going mainstream... Don't miss our first-ever Cannabis Investing Event...
In Friday's Digest on the U.S. health care system, our newest senior analyst Thomas Carroll 'broke the news'...
In short, he will be leading our first-ever research efforts into the rapidly growing legal cannabis industry.
If you've been with us for long, this news probably surprised you. After all, for the past couple of years, we've generally taken a cautious – even skeptical – view of the industry.
In fact, as recently as September, we warned of a mini "mania" in many of the most popular cannabis stocks – such as Tilray (TLRY). (Our timing was spot on. Many of these stocks peaked the same day we published that warning... and declined by 50% or more over the next several months.)
However, we've also told you that this wouldn't be the case forever...
You see, while many of the companies in this space were (and still are) dubious, we've also reminded you that there was a real, expanding industry behind them.
With a majority of the American public now in support of legal cannabis, we knew it was simply a matter of time before legitimate investment opportunities emerged.
But frankly, even we've been surprised by how quickly things are changing...
In hindsight, we'll likely look back at 2018 as an important turning point for this burgeoning industry...
Most notably, in December, Congress passed the Agriculture Improvement Act of 2018, more commonly known as the "Farm Bill."
Among other things, the law legalized hemp – a cousin of the cannabis plant – nationwide for the first time in decades. Many viewed this move as a necessary first step to full cannabis legalization.
Last year also saw a number of cannabis companies list their shares for trading on major U.S. exchanges – including the Nasdaq and the New York Stock Exchange – for the first time.
Of course, several of these companies soared to absurd heights during last summer's boom. But nonetheless, it was an important milestone...
Unlike many of the dozens of cannabis companies trading in Canada and on "over the counter" exchanges in the U.S., these are real businesses with real and rapidly growling revenues.
And of course, 2018 also saw another critical change in the industry...
A number of large, mainstream companies took an interest in legal cannabis for the first time.
Anheuser-Busch InBev (BUD), Molson Coors Brewing (TAP), and Constellation Brands (STZ), among others, all made sizeable investments in the industry last year. And we're seeing signs that others could soon join them. As Forbes reported Thursday...
Last month, Barneys New York brought cannabis into the world of high-end luxury goods when it announced they would open a boutique focused on selling luxury accessories to cannabis aficionados. "Barneys is courting the Manolo Blahnik-wearing, marijuana smoking crowd," trumpeted a headline on MarketWatch.
Bloomingdale's is now selling cannabis-related products, including candles, perfumes, and soaps...
Facebook, which has long banned ads for "drugs and drug-related products," recently announced that changes to these rules – specifically with regard to cannabis – may be on the way...
We also learned recently that Whole Foods is interested in selling cannabis products if full legalization comes to fruition. CEO John Mackey, who has been a proponent of cannabis legalization since at least 2013, said earlier this month that, should cannabis become legal, Whole Foods wants a piece of the action.
As Forbes noted, this is likely just the beginning of what could be an extremely long list.
That's because legal cannabis won't simply be a competitor to the alcohol and cigarette industries. It could ultimately disrupt a huge number of industries worth hundreds of billions – even trillions – of dollars.
Again, it's still early...
This industry is sure to have plenty of growing pains in the years ahead. And even now, most cannabis stocks are speculative at best. But we're now seeing a number of legitimate investment opportunities in cannabis for the first time...
That's why we've decided that now is the time to hold our first-ever Cannabis Investing Event. We hope you'll join us next Wednesday, March 27, at 8 p.m. Eastern time to see exactly what we've found. Learn more and reserve your spot for this FREE event right here.
New 52-week highs (as of 3/15/19): Automatic Data Processing (ADP), American Express (AXP), Ionis Pharmaceuticals (IONS), KLA-Tencor (KLAC), Microsoft (MSFT), Procter & Gamble (PG), and T-Mobile (TMUS).
Thomas clearly isn't alone... In today's mailbag, several Digest readers share their own experiences and frustrations with the U.S. health care system. Send your notes to feedback@stansberryresearch.com.
"Hi Tom, like you I have felt the US healthcare system is crazy and unsustainable. I have felt that for 20+ years and I still am uncomfortable investing in it. I am 81 years old, have been an MD for more than 56 years and a professor at two top tier medical schools.
"Now that I am a consumer, I dislike our system even more! So much potential, so little common sense. You have another issue to be upset about with your described long encounter: B12 deficiencies do not cause one sided numbness. Classically, it is associated with insidious onset numbness of both feet... Best wishes." – Paid-up subscriber Robert C.
"Tom: I can top that. My wife went into an emergency room in the middle of the night and went through a battery of similar tests because she was suffering from a severe abdominal pain. Four hours, $17,000 and a diagnosis of 'unknown abdominal pain' later she left the hospital. Two days later she woke up with shingles around her abdomen. Our health care system is f%$^*@ up!" – Paid-up subscriber Joe F.
"This was very relevant to my situation since I've just turned 71 and expect that something similar may happen to me in the future. Like the author I've been fortunate enough not to have gone to the hospital. I'd like to see some research done by Stansberry into any companies that provide help in navigating the crazy medical bills from hospitals. This seems to me to be an area ripe for investment. Hopefully one of your analysts will look into this segment of the medical industry in the future." – Paid-up Stansberry Alliance member Alan A.
"Last Memorial Day weekend, I was leaving a supermarket. I had gotten just a few items, so I picked up the 3 plastic bags from the cart and started toward my car. Unfortunately I tripped on something and fell face first, landing on the knuckles of both hands and scraping my forehead on the pavement. I was 89, though mobile and in pretty good health. Other customers helped me up and got a chair from inside, because I was a bit shook up. I knew I would need to get my knuckles stitched up, but planned to go to an urgent care center for that. They also called an ambulance, which came about the time I was ready to go on my way. Bleeding had pretty much stopped. I argued that I was okay, but they insisted on taking me to the emergency room, even calling their lieutenant when I resisted. At last I agreed, and the lieutenant walked with me to my car to lock up. No problem walking. I sat in a seat for the trip, chatting with one of the EMTs – no stretcher.
"At the ER, CRNPs cleaned and stitched 5 knuckles, and insisted on CAT scanning my head. No doctor ever saw me, though I presume one checked my CAT scan. Never heard of any problem. Then I was discharged and got a cab back to my car and drove home.
"I had an $80 copay for the ER, but got a bill for nearly $1000 for doctors, which weren't covered. And $35 for the cab and tip to my car... As a county resident, the ambo cost me nothing. All for about an hour or so in the ER. Much of medicine seems like a racket." – Paid-up subscriber Charles B.
"I went to the ER. A fever of 103 that wouldn't break. I was coughing so hard I blacked out. It was 6 a.m. on a week day. I was about to collapse on the floor. The receptionists ignored me. When they broke up their tea party, one asked me what could they do for me. Like they were doing me a favor. Seriously? I am soaked with sweat, my chest is heaving, I can't get my breath and they had to ask?
"That wasn't the worst, I had to fight to not pass out while they got my information into their system, scanned my ID and my insurance card, and have me sign the appropriate documents. Which later was kind of funny, I was not legally in a condition to be a party to a contract, but I had to sign before I would be seen by anyone.
"Once back in the Emergency Department, the speed and efficiency of care was amazing. But it ended there. Once stabilized, I was not admitted. I was moved to something called observation, a 'lesser expensive alternative to being admitted.' You recall the MASH series with the tents full of soldiers on cots, it was kind of like that except no tent. I am 6'1" and 250 pounds. They put me in some bed that moves air in a mattress as you change positions, great idea, except it clearly states 'not for patients over 200 lbs.' So I pancaked the mattress and was literally laying on the metal frame the entire time even though I told everyone about the problem. I only saw Physician Assistants, never a doctor. Occasionally a nurse's aide would stop by, but never a nurse. Translation, if I needed something medical, I had to wait on the Nurses Aide to come by, then wait for her to tell the nurse, then wait for the nurse to see me, then wait for her to contact the Physicians Assistant.
"I was in 'observation' for 3 days. There was no phone. My phone's battery was dead and no one would let me borrow a charger or get me a phone. I live alone and no one knew where I was. Since I was not 'admitted,' anyone calling the hospital was told I wasn't a patient there. What a nightmare for my family and friends. I have good insurance but was still thousands in debt. And there were charges on my bill for doctors I never saw. Honestly, if I have another medical emergency, once I'm stable, I'm making arrangements for home care and leaving (probably against medical advice). I don't think the mental scars of that nightmare will ever heal." – Paid-up subscriber David T.
Regards,
Justin Brill
Baltimore, Maryland
March 18, 2019