Cannabis is going to grow faster than any other vertical market in the next 15 years.
Mark my words:
THIS is the time to get in.
— Valuations are WAY down
— Capital is EXTREMELY scarce
— Regulatory changes are INEVITABLE
— Alcohol is LOSING GROUND to cannabis
That's the perfect opportunity for savvy investors.
There's a lot of quality in this industry if you know where to look for it.
I spotlight great companies here every week.
Call me if you're ready to make moves.
To help answer this, I decided to dust off my old economics books to see Ludwig von Mises's view of the consumer as the “captain” of the economic ship. 💪
"The real bosses, in the capitalist system of market economy, are the consumers. They, by their buying and by their abstention from buying, decide who should own the capital and run the plants. They determine what should be produced and in what quantity and quality. Their attitudes result either in profit or in loss for the enterpriser. They make poor men rich and rich men poor. They are no easy bosses. They are full of whims and fancies, changeable and unpredictable. They do not care a whit for past merit. As soon as something is offered to them that they like better or that is cheaper, they desert their old purveyors. With them nothing counts more than their own satisfaction. They bother neither about the vested interests of capitalists nor about the fate of the workers who lose their jobs if as consumers they no longer buy what they used to buy."
One metric I didn’t expect to see DECREASING in cannabis is UNIT SALES…
As you’ll have gathered, I’m a booster for this industry.
My conventional wisdom has always been up and to the right for cannabis.
Even when we see saturation in a state, I assume that:
— Lower prices = higher unit sales
— Growth in cannabis is a sacred assumption
Credit the smart guys at Bengal Capital and my friend Sanjay Tolia for pointing it out to me….
So imagine how surprised I was to hear that unit sales are down in both OR and AZ.
I asked my friends as Headset to have a look…
And it turns out, they are…
In the last few months, unit sales in both states have been decreasing.
Oregon is actually up June over June, but has been fluctuating.
AZ is down YoY for June but also fluctuates quite a bit over the last year
So what does this mean?
— Inflation kicking consumers’ asses?
— Illicit market kicking the legal market’s ass?
— Is the appetite for weed waning?
— Something else entirely??
I am not sure…
But one of my standard assumptions just got challenged…
What do YOU think??
The MN Office of Cannabis Management opens applications for cannabis business license preapproval today. 👍
Starting today (Wednesday, July 24), prospective cannabis business owners who have been verified as social equity applicants can submit an application for a cannabis business license.
The application window for social equity business license preapproval will be open from July 24 through Aug. 12, a timeline defined in state statute. Submitted business license applications will undergo a review and vetting process, and if qualified, they will be entered into a lottery that will award licenses in nine different categories. The first license lottery will be held this fall.
👉 OCM is hosting an informational webinar at 4 p.m. today to guide social equity applicants through the process of completing the application for cannabis business license preapproval.
