Last week Canada took one of the last steps towards fully legalizing marijuana and finally unleashing a $7 billion mega-growth industry.
The Canadian Senate passed the law that will fully legalize marijuana across the country.
Big news right?
Well, if you’re watching marijuana stock moves after, this news wasn’t big enough to keep them going higher.
In fact, the milestone vote looked like complete non-event.
In a lot of ways, it actually was a non-event.
The Canadian Senate was widely expected to pass the bill (it ended up passing by an uneventful margin of nearly two-to-one).
However, it included a few small amendments to the bill.
As a result, the bill has to go back to parliament and the real and truly final approval of the marijuana legalization bill is now either days or more months away.
The Clock Is Ticking
Canada’s Parliament has left itself in a bit of a bind.
You see, there is a looooong summer break coming up.
Parliament is scheduled to go on break from June 23 until September 17.
That means if the legislation is not complete by June 23, it’s not going to happen for at least nearly three months after that.
Think the majority of marijuana investors – which have had big runs over the last year – are willing to wait out three months?
That’s an eternity on Wall Street and the financial world.
To be honest, the Seed Investor can’t recommend taking the wait-and-see approach.
Growth stocks are driven by news. No news is almost always bad news.
Nearly three months of no movement on legislation could be a catastrophic period of no news.
However, that doesn’t mean there’s no opportunity in marijuana stocks.
It just means the buy-anything-marijuana-and-watch-it-soar strategy won’t work this summer.
And that’s why the Seed Investor continues to look for one specific type of marijuana stock.
The Best (Now Even Better) Marijuana Stocks To Buy Now
The Seed Investor continues to believe the best marijuana stocks to buy are those with a retail-focused businesses.
The multi-billion dollar marijuana majors have raised hundreds of millions of dollars of capital, have built and are still building world-class farming operations, and are on their way to dominating the industry.
Canopy Growth (CDN:WEED; US:CGC), Aurora Canabis (CDN:ACB; US:ACBFF), and Aphria (CDN:APH; US APHFF) are the big players in marijuana production and distribution and will likely remain so for the foreseeable future.
However, the retail marijuana industry is still a Wild West-style race for market share where anything goes.
Just look at what’s happening in this sub-sector of marijuana right now.
The marijuana majors have all made significant investments or acquisitions of smaller marijuana companies which focused on retail distribution, consumer products, and brand building.
In the next Seed Investor communique (we’re finalizing it right now), we’ll show you how one hot new marijuana IPO is upsetting the retail marijuana market and the opportunity it’s creating as a result (hint: it’s not where everyone thinks).
Watch your email inbox for it.
In a few weeks you’ll be glad you’ve got that information now whether Canada legalizes marijuana fully in a few days before the summer legislative break or a few months.
The Seed Investor