When the legal marijuana market crashed, its rubble, dust, and debris spread quickly across the markets.
The massive swoon left legal cannabis in state of panic and despair… teetering on the edge of complete destruction.
Unnoticed amid the chaos were the few nimble companies that outraced the devastation.
One such company is Washington State-based New Leaf Ventures (NLVVF).
It’s why, today, as the broken, greedy, and profane cannabis corporations beg investors for life support, New Leaf (NLVVF) offer a results’ based beacon of hope
That’s because New Leaf (NLVVF), through it’s wholly owned subsidiaries, offer real property, consulting, intellectual property and enhanced ancillary services to licensed holders in Washington. Ultimately, making well-known marijuana products for the Washington market.
In fact, New Leaf’s (NLVVF) co-founder, Dax Colwell, says some of his company’s legal products were first ever to be sold retail in Washington.
But processing is New Leaf’s (NLVVF) expertise.
New Leaf (NLVVF) does the integral work. Through their SOP’s, the raw weed is turned into packages of consumer products.
In other words, it’s primary mission is being the vital middleman in the retail supply chain… like the company that takes raw corn and turns it into breakfast cereal.
And, Washington State records show New Leaf (NLVVF) in the legal cannabis industry’s sweet spot.
The revenue records indicate New LEAF (NLVVF) is a steady, well-run company.
It’s why I am convinced New Leaf Ventures (NLVVF) has carved out an important place in the legal marijuana industry’s sturdy new foundation.
Because of that, even bruised and battered legal cannabis investors – who still rightly sense the legal marijuana industry’s vast potential – should closely examine New Leaf Ventures (NLVVF).
What you’ll find is a pedigree that suggests New Leaf (NLVVF) could soon be one of the biggest winners in legal marijuana’s next wave.
In short, I’ve been an investment authority for nearly 40 years, and I must say this is one of the very best, huge-upside young companies I have ever seen.
Investment Authority With A Nose For Winners
By the way, I’m James DiGeorgia, editor of the popular World Opportunity Investor investment advisory.
Over the years I’ve seen a lot. It’s why I’ve been a featured guest on CNBC, Fox Business, and am frequently quoted as an expert in The New York Times, USA Today, Los Angeles Times, Money magazine, The Chicago Tribune, and Barron’s, to name just a few.
I’m also the author of several best-selling books including The New Bull Market in Gold, The Rise of Gold in the 21st Century, The Global War for Oil, and The Trader’s Great Gold Rush.
And not to brag, but when President Trump’s good friend, and Mar-a-Lago member Christopher Ruddy found his financial division in a rut, he brought me into the inner circle to energize them.
So, I am well-known for discovering stocks just as they hit the fast track for success.
I’ve been discovering moonshot stock winners for Main Street and retail investors for the past 40 years. It’s why I can understand why right now you could be reading this and thinking, “is he nuts… a pot stock?”
And I totally get it.
After all, while all bubbles burst, the legal cannabis debacle is one of the worst I can remember.
And, yet, there’s no denying that until the end of Q1 2019, pot stocks were the sweethearts of the stock market rodeo.
Companies like Tilray, Chronos, and Aphria were riding high… delivering triple-digit and even quadruple-digit gains, completely immersed in dreams of cannabis market domination.
With an influx of investor capital, these flashy pot stocks became their own worst enemy with speculative acquisitions, rapid facility expansions, legal problems from early transactions, investing in too many companies with underperforming assets—all in their quest to become the biggest and best during the green rush.
The “Big 5” cannabis stocks suffered massive valuation declines as they wrote checks their revenues couldn’t cover. Their overconfidence and breakneck pace were their own undoing.
The result? As suddenly as it inflated, the bubble exploded. Investors of all sizes took ugly haircuts as cannabis stocks declined as much as 90%.
Since then, it’s no surprise that investors have become gun shy with pot stocks.
They are not just trailblazers, New Leaf Venture (NLVVF) founders, Dax Colwell and Boris Gorodnitsky, seen here in one of their grow rooms, are legends in the America’s legal cannabis industry for bringing the recreational marijuana to market in Washington state.
However, there are survivors. one stock many consider the “tortoise” in the pot stock race due to its history of steady growth[ii] and its potential to gradually and deliberately become the largest, most recognized brand of cannabis.
In fact, this pot stock is so predictably steadfast that even the most conservative stock investors won’t want to pass up.
This Careful Pot Stock Turn into Such a Moonshot… Even A Nun Would Buy It
In a sea of unscrupulous cannabis companies, the “tortoise of cannabis” has separated itself from the speedy pack of hares, building a name for itself and thriving since the beginning of legalization in Washington State.
New Leaf Ventures (NLVVF) recently inked a deal with New Leaf USA, which has successfully withstood over 10 years in one of the oldest legal marijuana markets. So, what’s the key to New Leaf’s (NLVVF) success and longevity?
After watching so many newbie cannabis companies crash and burn while facing the everchanging regulations during early legalization efforts nearly a decade ago, New Leaf (NLVVF) quickly realized it must invest wisely, be nimble, and not spend its capital in one concentrated area of the cannabis market.
As such, New Leaf (NLVVF) has painstakingly systemized its processes and capital management plans to endure and thrive in the ever-changing cannabis landscape. This fiscally responsible, methodical, mature company is a rarity among the reckless spending and huge operating losses causing so much volatility with pot stocks nowadays.
Judging by its business plan, it’s easy to see that New Leaf (NLVVF) has dedicated its mission to NOT be like the “Big 5.”
New Leaf (NLVVF) is honest and transparent, which is unlike the “popular” pot stocks that spent every dime from investors on unscrupulous business dealings…
Courtesy EnWave
In fact, New Leaf (NLVVF) is openly and ethically building the most efficient, productive, and sustainable business model that I’ve seen from any pot stock to date…
It is currently undergoing negotiations to implement the technology to optimize its growing operation which reduces cost of goods by over 40% and installed cutting-edge drying technology which dramatically decreases processing time[iii] … in order to meet the needs of the ever-growing cannabis industry.
That technology, from EnWave, replaces huge drying rooms where plants once hung to dry for weeks.[iv]
But, EnWave’s technical marvel allows New Leaf (NLVVF) to rapidly dehydrate fresh cannabis plants… dry them to the proper moisture level in a blazing fast 45 minutes.
This give New Leaf (NLVVF) a huge competitive advantage… a 21st century advantage because with EnWave:
- Low temperature drying retains cannabinoids and terpenes
- Low-pressure drying prevents oxidation
- Gentle process preserves resin-coated calyxes
Delivers excellent aroma and According to New Leaf (NLVVF) the EnWave technology will allow it to nearly quintuple the amount of cannabis is processes each year from 22,500 pounds to 104,000 pounds. Such a huge spike in production is part of why New Leaf (NLVVF) forecasts its revenues to jump as high as $30 million over the next three to four years.
It’s also the kind of sensational improvement that could sharpen investors’ focus on New Leaf Ventures (NLVVF)
A $46 Billion Market Is Up for Grabs
With technology such as EnWave, New Leaf Ventures’ (NLVVF) steady growth and expansion quickly elevates it to the top of my must-own pot stock list. With a fully compliant, state-of-the art 30,000 ft2 facility, New Leaf (NLVVF) is an established Tier 3 producer and processor.
Tier 3 is how Washington State classifies its largest legal cannabis companies.
As a seasoned producer and processor, New Leaf (NLVVF) earned its lofty status because of its multi-faceted strategy that focuses on cultivation, processing, packaging and distribution of cannabis and cannabis retail products.
This allows the company to capitalize across each market segment.
Moreover, in such a highly regulated industry, New Leaf’s (NLVVF) Tier 3 rating is not only testimony to its thorough understanding of the cannabis market, but to its key relationships with the LCB, Department of Agriculture, Department of Health, and Cannabis Alliance.
New Leaf (NLVVF) has also formed calculated partnerships by facilitating recreational supply agreements with local farmers and product supply arrangements with unique premium CBD producers. These alliances give them a nearly unlimited potential for growth as the industry evolves—while other processors may be capped by short supply.
The company’s 30,000 square foot production facility—combined with its supply relationships—currently provides New Leaf (NLVVF)’s contracted License Holders with the capability of producing and processing 22,250 pounds of cannabis per year. In fact, New Leaf (NLVVF) ranks in the top 3%[v] of all cannabis producers in Washington State.
While that is impressive, New Leaf (NLVVF)’s license holder could see its production increase a whopping 362% after one operational change planned for later this year. This addition will give the company the capability to produce 104,000 pounds of cannabis. That equates to nearly 10% of Washington’s total cannabis production last year[vi].
With premium-grade cannabis priced around $1,600 per pound wholesale in Washington[vii], once New Leaf makes this production change, it could be sitting on a mile-high pile of premium pot[viii]
It’s easy to see that the forecasted 367% increase is one of the main reasons New Leaf Ventures (NLVVF) reports the potential to hit $30 million in revenue over the next three years. It’s also the biggest reason that New Leaf (NLVVF) could soar from a virtually unknown pot stock to the hottest ticket in town.
With an increase that huge, investors could be naming this pot stock the “Home Run King” by 2023.
But unlike some of the speculative cannabis companies that got too big for their britches, New Leaf (NLVVF) remains focused on its Lean Principles and Growth Strategy. Meaning that surge won’t go to its head. New Leaf (NLVVF) is committed to steady growth the smart way.
And by “smart” way, I mean that New Leaf’s (NLVVF) actions have proven it’s the ‘steady Eddie’ tortoise… making strategic moves and conserving capital to survive the ever-changing landscape of the cannabis industry—dedicated to crossing the finish line while others fade mid-race.
New Leaf’s (NLVVF) projected $30 million in revenue shouldn’t be too much of a stretch considering their production capabilities and the forecasted cannabis market potential. Since legalization occurred in Washington State, its cannabis market has grown to be one of the largest and most competitive in the country.[ix]
In fact, it’s projected that Washington cannabis sales alone will hit a jaw-dropping $2.1 billion this year[x]. With a compound annual growth of 23%[xi], this charter state’s potential remains untapped. Its well-regulated structure for cultivation, processing, and retail offers established cannabis companies like New Leaf (NLVVF) the perfect launching pad to transition to the national spotlight once national legalization occurs.
But domination of the Washington cannabis market is just the first step of the plan for New Leaf Ventures (NLVVF) – this “Tortoise of Weed.”
With the national cannabis market projected to reach $46.5 BILLION by 2025[xii], New Leaf (NLVVF) has its sights set on successfully achieving national and international expansion and grabbing their share of the profits.
This “Tortoise of Weed” Could Soon Be a Household Name in the U.S.
While researching New Leaf’s (NLVVF) slow and steady advancement, I kept drawing parallels to another company that leisurely made the journey from a relatively unknown brand to a household name: Starbucks.
To many people, Starbucks is known for being the world’s largest coffeehouse chain. But most investors might be surprised to learn that Starbucks started out selling beans, not lattes. And they did it in the midst of a coffee market slump thanks to the carbonated beverage boom.
But the vision of one of their members lead them to become coffeehouse pioneers in the U.S.—opening the very first in Seattle, Washington. It’s grown from 154 stores at its IPO[xiii] to more than 30,000 globally–catering to 100 million customers[xiv].
New Leaf (NLVVF) has taken the same innovative route as Starbucks with its growth strategy. The company started brands selling dried flowers and then gradually expanded to edibles, CBD, concentrates, and hemp as well—keeping up with the cannabis market’s.
While developing these product lines, New Leaf Ventures (NLVVF) subsequently created one of the oldest, most-respected brands in Washington State: Dama brand.
Just like Starbucks was a branding pioneer, Dama has been a brand trendsetter, too. It was the first brand in Washington to openly advertise recreational marijuana in a dramatically public way.
Back in 2014, New Leaf’s (NLVVF) Dama made headlines when it was the very first cannabis brand to put up a billboard advertising in Seattle. It was also the first marijuana brand to fly a banner over CenturyLink field at the opening of the Seattle Seahawk football season.
Plain and simple, New Leaf (NLVVF) is the industry innovator of cannabis branding.
Not only did it forge a new path with advertising, but Dama was the concentrate brand in Washington, proving New Leaf’s (NLVVF) staying power in an industry where so many cannabis companies crash and burn due to lack of planning and overspending. New Leaf (NLVVF) has been a true visionary of marketing and driving the recreational legalization movement and more than ten years since legalization, it continues to be an industry pioneer today.
New Leaf (NLVVF) had the foresight to understand that cultivation and cannabis sales are king… which is why 80% of its current sales are dedicated to dried flower and hemp. The company also had a solid grasp that it needed to keep pushing new concepts to propel the longevity and growth of its established brand.
Back in 1992, Starbucks knew it was on the cusp of monumental growth when it launched its IPO [xv] at $17 per share and watched the price double within 11 short months. Investors who put $10,000 on the Starbucks’ IPO, you’d be sitting on roughly $2,778,5502 today.
While the investors who bought New Leaf (NLVVF) during their IPO earlier this year have already seen the share price nearly double in just three short months—they have the potential to watch New Leaf Venture (NLVVF) skyrocket as it makes its way to its goal of $30 million in revenue.
A Mount Everest-Sized Pile of Cannabis and a Well-Formulated Plan to Hit $30 Million in Revenue in Just 3 Years…
When New Leaf Ventures (NLVVF) acquired its 30,000 ft2 facility, it was smart. It had seen disaster strike companies such as Tilray, which imploded due to expanding too rapidly—without the sales revenue to support it.
New Leaf (NLVVF) knew eventually it would use all of that space, but was careful not to grow too big too quickly. So it bided its time, carefully raising capital from its initial IPO. And now, New Leaf (NLVVF) is ready to expand the smart way by conservatively allocating its IPO capital towards the next phase of its expansion.
This expansion plan will position New Leaf Venture (NLVVF) to reap the rewards of the $2.1 billion Washington cannabis market by employing a conservative, scalable plan… ultimately staking its claim on $46.5 billion national pot profit pie.
Again, this expansion isn’t the blind, ego-fueled “I want to have the biggest, gold-lined facility in the country” that perpetuated the downfall of some of the “big 5” cannabis companies.
Rather it’s a resourceful, meticulous operation expansion to fully utilize the unused 13,000 square feet of space in their current facility, which was part of their “tortoise and the hare” business strategy for long-term growth.
This expansion includes constructing a large-scale cannabis commercial kitchen that will allow New Leaf (NLVVF) to generate $15 million in revenue over the next three years[xvi] solely from the new vapor cartridges, edibles, and concentrates sold via the license holder. This development will let New Leaf (NLVVF) scale production to meet the demand of existing retail partnerships while creating new retail store connections.
During this expansion, New Leaf (NLVVF) will also create a hydrocarbon extraction lab. This extraction technique is favored among affluent cannabis users as it extracts the cannabinoids, while maintaining the integrity (flavor and smell) of the strain.
New Leaf (NLVVF) will be one of the few producer/processors in Washington that are able to utilize this superior extraction method on tens of thousands of pounds of cannabis, giving them yet another leg up on their competition.
Cutting Costs by 40%
Developing the 13,000 sq. ft. workspace also gives New Leaf (NLVVF) the ability to integrate state-of-the-art technology to reduce drying time and increase product shelf life. This capacity will further advance the company’s production and high-volume packaging operations allowing it to grow its Dama brand from 70 to 200 distributors across Washington.
While its expansion is anticipated to be complete by the end of 2020, there’s one additional action that will tremendously impact profits…
New Leaf (NLVVF), through its consulting services, is migrating from on-premise farming to larger, off-site dedicated farming supply partners. By refocusing its efforts to processing, extraction, packaging and distribution—opposed to large-scale cannabis farming— New Leaf (NLVVF) will be able cut the cost of goods by an astounding 40%.
Additionally, New Leaf (NLVVF) plans to expand its hemp operations in a 5,000 square foot facility across the street from their main building.
The company also developed an ecommerce platform to sell hemp, CBD oils, liquid gel capsules, and topical creams across the open market. This provides yet another revenue stream and a way to reach more cannabis consumers through an assortment of new products.
Pioneering the Future of Cannabis…Yet Again
Once the expansion is complete, New Leaf (NLVVF) isn’t one to sit on its laurels and reap the rewards of more than a decade of hard work. The company has strategized yet another way to reach the masses with the next evolution in cannabis: low-dose drinkables.
Until now, drinkables on the cannabis market were focused on providing the biggest bang of THC for the buck. You could say these highly concentrated THC or CBD drinks are the “Everclear” of cannabis-infused beverages. Their only purpose was to get users really high…as fast as possible.
The problem with these drinks is three-fold:
1) Due to subpar extraction and infusion methods, the majority of them tasted terrible[xvii].
2) Washington’s cannabis users are rather sophisticated…so they aren’t typically looking to get out-of-their-minds blitzed, and…
3) Most of these drinkables either contained alcohol or came in “beer” form.
It’s no secret that alcohol is hard on your stomach, liver, and kidneys—and can cause alcohol poisoning or death if you consume too much. Many cannabis users stick to smoking or vaping strictly for these reasons. Millennials, who make up the largest group of all recreational cannabis users[xviii]— prefer cannabis to booze[xix]. And according to a survey from the Monitoring the Future Study, millennials drink far less alcohol than generations.
But, according to Britta Starke, an addictions therapist and the program director of the Alcohol and Substance Abuse Center at the University of North Carolina, Millennials are well known for ingesting other substances.
“It still seems like this is a generation of self-medicating, but they’re using things differently,” says Starke, and the normalization and ever more common legalization of cannabis have a big part in that.
Moreover, a recent study, from 2017, suggests that legal cannabis has a dramatic effect on alcohol sales.[xx]
It found that in counties with legalized medicinal cannabis, alcohol sales dropped more than 12 percent when compared with similar counties without weed.
The study also found that recreational legalization has the potential to bolster that effect by making cannabis products even more broadly accessible.
And while legal marijuana are piecemeal in the U.S., Pew Research Center polling found that more than two thirds of Americans favor legalized recreational pot.[xxi]
Just as importantly, Pew found that the share of U.S. adults who oppose legalization has fallen from 52% in 2010 to 32% today. Pew’s polling took place about a year ago in September 2019.[xxii]
Today, legal recreational cannabis is available in 11 states and the District of Columbia.
Moreover, you’d think legal weed would be a “liberal” issue, but many notable conservatives believe policing marijanan smokers is a waste of law enforcement assets.
William F. Buckley put it this way. “The amount of money and of legal energy being given to prosecute hundreds of thousands of Americans who are caught with a few ounces of marijuana in their jeans simply makes no sense – the kindest way to put it. A sterner way to put it is that it is an outrage, an imposition on basic civil liberties and on the reasonable expenditure of social energy.”
And, Richard Nixon said, “Federal and state laws (should) be changed to no longer make it a crime to possess marijuana for private use.”
And, of course, Bob Dylan wrote, “the times they are a changin’”
And, no mainstream legal cannabis company may be more aware of that that New Leaf Ventures (NLVVF).
Remember, New Leaf (NLVVF) was first to market with a legal cannabis product after Washington went legal.
New Leaf (NLVVF) is a trendsetter.And now, in 2020, it has recognized a new emerging trend in legal cannabis.
It’s a trend that has as many as 13 zeros attached to it… BILLIONS!
This new trend based on a better way to provide users with a socially enjoyable cannabis – infused beverages that mimics the relaxation effects of alcohol but are based on cannabis instead..
New Leaf (NLVVF) reports rapid progress in developing a brand new drinkable.
New Leaf’s (NLVVF) vision is that cannabis users can enjoy these low-dose drinkables in a social setting to take the edge off in a controlled way—just like having a beer or two after work (without the alcohol).
Drinkables is a huge market for New Leaf (NLVVF) to tap into with its revolutionary, new low-dose infused beverage.
In 2019 alone, high-dose drinkables generated $200 million in sales worldwide. And since they are consumed mostly by millennials[xxiii]—the largest group of recreational cannabis users—it’s anticipated their popularity will continue to explode.
In fact, by 2025 analysts estimate drinkable sales will hit an astounding $2.8 billion[xxiv].
However, national legalization will be the game-changer. When it happens, low-dose drinkables will be available in bars everywhere. While many people think we’re still a few years away from passing that legislation, one recent event is proof the potential exists to see country-wide legalization sooner than you think. In fact,[xxv] it could even happen this year.
History Could Soon Repeat Itself for the First Time in Nearly 100 Years
Thanks to COVID-19, America’s mental, emotional, and economic health has plummeted. Prior to the pandemic, the federal deficit sat at $1.1 trillion. However, after the coronavirus stimulus and aid, the deficit has been raised to an astounding $3.7 trillion[xxvi]. That puts this year’s federal budget shortfall equal to the sum of all federal budget shortfalls and surpluses from 1901 through 2003[xxvii].
Simply put, this country has a long climb ahead out of an economic quagmire at federal, state, and local levels. Governments everywhere will be seeking new sources of revenue.
With Washington collecting $390 million with their 37% excise tax, and states like California and Colorado pocketing $390 million and $251 million respectively in excise taxes in 2019[xxviii], more states are now salivating at the potential of scoring excise revenues too.
Since state legalization, states like Washington, Colorado, and California have been challenging the federal government to rule that marijuana use is not a criminal offense.
Their actions mirror the days of alcohol prohibition when there were criminal penalties for satisfying the population’s unquenchable thirst for booze. When alcohol prohibition was passed during the “Roaring 20s” the economy was flourishing and prosperous.
However, when the Great Depression hit, everything changed. The attitude of the country had reversed and most favored appealing prohibition—citing that legalizing alcohol would provide much needed tax revenue and jobs. It’s estimated that during prohibition, the federal government lost out on $11 billion in alcohol related taxes.
Factor in our depressed economy and the criminalization of marijuana use at federal level, and there is an eerily similar connection. Nearly 100 years after prohibition ended, we’re seeing history repeat itself with the economy needing a savior.
The sooner national legalization of marijuana occurs, the better. In fact, national legalization could result in $128.8 BILLION in tax revenue and produce an estimated 1.6 million new jobs[xxix]. Once national legalization is passed, marijuana sales will soar the way liquor sales shot sky high when prohibition was repealed.
In fact, we’ve already seen the scenario play out with Canada’s legalization. In just 7 short months, Canada’s cannabis sales soared 59.5% toppling $492 million total[xxx]. And nearly 6 months after legalization, Canada lined its pockets with C$186 million in tax revenues from cannabis sales[xxxi].
This year, they’re on track to hit $1.9 billion—that’s $4.97 million in sales per day[xxxii]
Whether or not it’s officially ruled ‘legal’ or is decriminalized, cannabis is already mainstream throughout the country… it’s here to stay regardless. In fact, by 2025, an estimated 46.57 million people will be consuming 34.39 million pounds of cannabis annually[xxxiii].
It’s why I’m urging investors to ride the wave of new and upcoming legalizations by investing in companies like New Leaf Ventures (NLVVF)… a company that’s proven they have the structural integrity and scalability in place to meet the growing demand once national legalization occurs.
New Leaf Ventures (NLVVF) has the deep understanding of the cannabis market to lead the pack in establishing control of the national and global markets once legalization advances. It has demonstrated the patience and knowhow to implement its U.S. market growth strategy and expand its e-commerce and distributor operations in a careful and efficient manner.
It’s why investors need to do their homework on the “tortoise of cannabis” now.
So, check with your broker or investment advisor. Have him double check my numbers.
Check carefully because I recognize that young companies with great stories can carry a significant amount of risk… that risk ranges from being under-funded to having a small number of shares available to the public.
So, I’ll also never shy away from alerting you about the risks associated with investing in young companies, new to the stock market.
That’s why I urge you to always observe my three rules for accepting microcap investing risk:
- Risk Reduction Rule #1: Never invest more than you can afford to lose.
- Risk Reduction Rule #2: Do not chase losses. That means if the prices slide you must resist all temptation to “average down.”
- Risk Reduction Rule #3: Don’t put all your dreams on one microcap. Allocate your risk capital among a handful of stocks
All that said, I think you will end up in agreement, New Leaf Ventures (NLVVF) could be 2020’s top headline-making pot stock.
So, I urge you to look into New Leaf (NLVVF) for yourself and consider it.…while the share price reflects the early stages of the massive growth it could see after it implements its expansion, launches the low-dose drinkables, and legalization occurs nationwide.
To learn more about New Leaf Ventures (NLVVF) visit their info page here.