The Pie is Not Big Enough.

5 Predictions as to what this means for the future of cannabis.

Dear Friend and Subscriber-

I have some bad news...

The cannabis pie is not big enough for everyone.

For years, activists and advocates have championed the message that there is enough room for everyone; that the cannabis pie is so big that everyone can get their fair slice without taking away from others. I hate to be the bearer of bad news, but this is outright wrong. And we know, because we have been lucky enough to live in a time where both extremes of the spectrum–limited competition vs. unlimited competition–exist as the cannabis industry matures in a patchwork fashion.

Most cannabis companies are losing money.

Sadly, this is a fact. If you've wondered why it's been radio silent regarding my Cannabis Investment Project that started last year, here's why: I turned $150 into ~$30 (as of this morning). Sure, there's some trading knowledge that can be gained from that, but the real insight is that, across the board, all of the companies that I bought a single share in have seen massive losses. And, if you look closely, the only "growth" you'll see in 99% of this sector is acquisitions; it's horizontal expansion, not vertical growth.

The market cannot sustain a surplus of supply, and, if everyone's in the space, there's too much pot.

Let's briefly look at four distinct markets:

• California: The most mature cannabis market in the U.S., with countless producers and the world's 5th highest GDP.

• Colorado: One of the two oldest recreational cannabis markets in the U.S.

• Oklahoma: One of the newest and fastest-growing markets, with the most licensed cannabis businesses per capita of any U.S. market.

• Florida: A medical oligarchy that is heavily restricted, represented primarily by corporate interest, and prohibitive in nature (though it's getting better) in regards to product availability and cultivation.

White Tahoe Cookies at Day 61 of Flower