$57B
143
The last month has been sobering after the spectacular run up to the end of 2017 that extended into the early days of 2018.
2027
His hypothesis – many of the existing companies will no longer exist in just a few years. I did not have the heart to tell him that “his hypothesis” was actually rooted in basic Economic theory and we have been reminding you of The Consolidation Curve since our first article. Many, do not realize the basic growth curve of the typical new industry as evidenced by those that seemed completely unaware when this well know industry personality shared his hypothesis. Scratching at the surface suggests there may be those entering this industry who are completely unaware of the economics.
This month, we want to focus on market capitalizations. Not a day goes by it seems that we are not flooded with new articles and opinion pieces explaining why valuations are near insane and often these writers use silly allegories and silly statements that this is dot.com v2018.
Back in early 2016, we reminded you how much money the average American spends on their pets and this recent update still has dog ownership at almost $1,800 per year after taxes. According to the American Pet Products Association, revenue in the pet industry was just over $62B in 2016 with annual growth forecasts through 2024. The results of this recent study using CBD for pain management on canines are groundbreaking. This little detour into the animal care sector is just a reminder that when it comes to the global market potential for hemp and cannabis dwarfs the present. If you want to learn more about the animal sector with respect to hemp and legal cannabis then look no further than the article written by Spiro Sertsis in our August-September Canadian Edition.
You also know that the global market of hemp alone is estimated at over USD$1-Trillion! These are numbers that most investors are not used to working with … but all of that is maybe … and maybe one day in the future … what about the here and now?
As we discussed last month, the FDA recently approved the first pharmaceutical cannabis plant based. From there, it is widely expected that the FDA will reschedule CBD from hemp and cannabis to a lower classification opening the door not only for more products and treatment options but also for more R&D including clinical trials. Per this July article in Forbes, the DEA needs to reclassify the CBD Compound as a prerequisite to the launch of the GW Pharma FDA approved drug Epidiolex.