Aurora, Tilray and Canopy are poised to explode
The big three cannabis companies – Tilray, Aurora and Canopy – have already entrenched themselves as the leaders in the cannabis industry. When investors are considering getting into marijuana investments, these are solid options; however, their price points might be a turn-off to some since there isn’t a lot of historical data from which to draw a comparison. Even at their current price points, all three are worth considering and are bargains compared to what will come.
The global marijuana industry is going to explode. All three of the companies are best positioned to capitalize on new legalized markets and expanded operations across the world, having already established global production and supply lines. As more countries pull the trigger on legalization, the three will be in the best position to tap into the markets quickly and easily.
This expansion will see their stock prices shoot through the roof. The medical cannabis market alone is forecast to reach $150 billion – and this doesn’t include cannabis-infused edibles or beverages. The cannabis beverage market is expected to be worth $200 billion within the next 15 years.
Based on a price-to-sales ratio of five (the average for tobacco and alcohol), Aurora would only need 2% of the market share, Canopy would just need 3% and Tilray would only have to capture 1.5%. Given the production capacity of all three companies, they will be able to meet those goals immediately, and will capture much larger segments in very little time.