A boom 95 years in the making…
The news came in late Thursday evening — Canada’s Senate approved Bill C-45, lifting the country’s prohibition on recreational cannabis.
The vote passed with almost a two-thirds majority, 56-30, as noted by Marijuana Business Daily.
The legislation reverses 95 years of Canadian pot prohibition.
Next, the bill heads back to the House of Commons for ratification of the changes made in the Senate.
At this point, it looks like most of the changes to the bill are minor, and most politicos expect them to pass.
Meanwhile, 450 leaders in the marijuana industry will gather in New Brunswick next week to discuss how to market marijuana under the new laws…
These are exciting times for the industry!
But what can you expect next?
Let me show you…
Recreational Pot To Hit Shelves In Under Three Months?
According to Canadian regulators, once the bill is signed into law by President Trudeau, “sales are likely to commence in 10 to 12 weeks,” as reported by SmallCaps.com
To be fair this is a best case scenario.
We believe that a longer time line is more realistic.
Before the bill is signed into law, it still faces a vote by Canada’s House of Commons.
Most expect this vote to pass quickly, but there are roughly 50 new amendments added to the bill that the Canadian upper chamber must approve.
This process of course could slow things down and push the “product to shelf” date back a few more months.
But that said, the news of last night’s vote can still only be viewed as good for the industry.
Why Waiting Could Be A Good Thing
If the pot industry has one major problem it’s this… There are legitimate supply side concerns throughout the U.S. and Canadian industries.
The simple fact is demand outweighs supply, and many companies are playing catch up.
Recreational sales will only increase demand, adding more pressure to an already strained supply chain.
Health Minister Ginette Petitpas Taylor, notes “marijuana would only go on sale a few months after it was legalized because the new retail system needs time to start working properly,” as reported by CNBC.
Canadian pot stocks across the board corrected this morning. Some experts citing potential delays in getting recreational pot into stores as the reason.
We however believe the reason is far less sinister. First movers are simply taking in gains.
We can’t blame them.
The anticipation of a positive vote was high, and many stocks saw double digit run-ups leading into Thursday.
An all purpose traders rule is to cash out half of one’s position after you make back your initial stake.
People simply were playing pot stocks like stocks should be played.
And the sell-off means many high-quality pot stocks are on a discount today.
This won’t last long. So the moral of the story: don’t wait. Now’s the perfect time to act.
Buy the dip, and get ready to ride a very long rip, with Canadian pot.
Editors Note: And if you want to know exactly how to play the Canadian pot boom… including the details of which stocks to buy right now…
Keep your eyes on your inbox this week, as stock expert Sean Keyes will be in touch with his explosive new report in to this exciting market – which includes the names of three stocks he believes will soon be shooting for the moon.
You won’t want to miss it.