Quote:
Originally Posted by OgSnowflake
Take a look into a company called Monsanto, they have been going around trying to buy up as many seed banks, nutrient companies, lighting companies , anything that has to do with cultivation.
Such a power house that none other than pharmaceutical company “Bayer” think we’ve heard of them before right? Offered them 66 billion to buy them out and they said yuppp! Sounds good to us!
So now the cultivation industry is owned by giant pharmaceutical.....mindblowing huh?
Scott’s has a lot of steam in the game and a great relationship with Monsanto so that will prob be a merge that happens someday when Bayer says ya let’s just buy Scott’s and all the cannabis company’s they own.
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Scott’s acquired a few hydroponic fertilization companies that support the Cannabis industry, but though it is the fastest growing part of their business, it is still an overall tiny part of the total. Scott’s traded up initially by association, but not because of a truly meaningful financial bump from their participation.
However, you are correct that large multinationals will make significant strategic investments in Cannabis. The companies that provide supplies will get the nice bump but the really money will be in the companies that “touch the seed” such as the top 4 highlighted above.
Alcohol Beverage Cos and Tobacco companies are the obvious acquirers, but confection and pharmaceutical companies also could be major investors in the space too.
More and more countries around the world and states in the U.S. are legalizing Cannabis. VT will legalize Recreational too via their Legislature in January according to the VT Speaker of the House. Next year, NJ is also likely push for legalization. One domino after another will continue to fall until it is legal in every U.S. state, and then the Federal government will re-schedule it to sonething other than Schedule 1.
In a nutshell, it is the most promising industry to invest in over the next 3-5 years. I’ve put my money where my mouth is, and have made mid-six figures already. That’s just the beginning!
