Steel, coal, tobacco, weapons, sugar, alcohol, rubber, and now marijuana! With the HT Growth Fund firing on all cylinders and the pot industry being regulated in states like Colorado and Washington, all information is pointing towards legalized marijuana as the next great American industry. Twenty-one states have some sort of medicinal marijuana legislation passed and more are on the way. As such, the marketplace is growing.
At this point it is a small-merchant's game. Private mom and pop stores are dominating the scene with more and more getting involved every day. CNBC analyst Heesun Wee sees it unfolding like the beer industry eventually "with small batch varieties nabbing market share amid larger brands." Those larger brands will be backed by the growing list of private and government backers as soon as they fully realize the monetary gain available from the legal marijuana industry.
Forecasts put the legal cannabis business in the US at around $2.3 billion in 2014. It's important too to look at the potential connected industries -- food, alcohol, merchandise, medical, educational. If you don't consider cannabis big business yet, you're sure to be in for a surprise very soon.
"The precursors of true national cannabis companies have emerged in the form of multistate licensors and are leveraging strong branding and scalable business models," explains Steve Berg, editor at ArcView Market Research. Entrepreneurs are buzzing around the business like crazy with money and ideas flowing around the horn.
"These companies will be prime candidates for acquisition or public listing, especially upon federal legalization," Berg says. Marijuana IPOs? Indeed!