What’s Altucher’s “The ONLY Marijuana Stock You’ll EVER Need” pitch about?

Checking out the "massive state-of-the-art greenhouse" that Altucher says will outproduce Canada's entire market... what's this stock?

By Travis Johnson, Stock Gumshoe, September 24, 2019

Marijuana stocks have been falling, and yet James Altucher is pitching his Altucher’s Investment Network newsletter ($49/yr) with the promise that he’s found the only one of these stocks you’ll ever need… and it’s all because of “a massive state-of-the-art greenhouse… that’s about to revolutionize the marijuana market as we know it.”

So what’s he talking about? He throws in the familiar “look at this mysterious building” photos, and the misleading clues…

“Located just 25 miles from Cleveland, Ohio…

“This experimental greenhouse is listed at over 1.4 million square feet (equivalent to over NINE FULL-SIZED Costco warehouses)…

“And with 27 million watts of electricity and a 100% closed-loop water recycling system…

“Is capable of producing weed at unheard-of levels.

“At full capacity…

“It could pump out nearly 341,000 pounds of marijuana every single year…

“To put that into perspective, according to this company, the entire Canadian market right now only produces 132,000 pounds.”

I don’t know exactly what the current production is in the Canadian market… but I know that there are more than a dozen Canadian growers that expect to reach at least 100,000 kilograms of dried flower production within the next year or so, with several of them soon to be well above that — including Canopy and Aurora at more than half a million kilograms each in production capacity (a kilogram is about 2.2 pounds, in case you’re metric=challenged, so that means this greenhouse would be big but probably not unique… and saying it would be more than twice the size of current Canadian production is wildly misleading even if we acknowledge that Canadian production has changed dramatically in the last year and will keep growing very fast for the near future).

And then Altucher shares a bunch of enticing numbers about the broad market potential…

“According to the latest data, with legalization in full swing…

“And numerous uses for marijuana and hemp, including industrial, medicinal and recreational…

“Since 2014 — demand for weed is projected to soar over 3,500%…

“And flat out —

“Marijuana producers just can’t keep up.

“Financial commentator Charles Kennedy claimed last year:

‘Licensed cannabis growers only have about 60,000 kg per year of capacity. That’s well short of the 900,000 kg Canadians are expected to consume in the first 12 months after legalization.'”

That was the story trotted around last year, but the “shortage” talk seems to have subsided and some folks are talking about a glut now — there are certainly retail shortages in some areas, but presumably that’s more of a licensing and regulatory problem than a production problem.

More not-terribly-well-supported exciteme