What's in your weed Portfolio? The #1 Canadian Marijuana hub its here. Lets discuss topics related to trading this hot sector.

Lets start with the big picture:

1. Sales of legalised recreational marijuana(RM) could surpass combined sales of beer, wine, and spirits.
2. Yearly sales of RM in Canada could be as high as $30-billion. 
3. Assume a fair valuation of x2 multiple for the sector.
4. The market price of all companies for the sector can be worth $60- billion.
5. Assume 85% of the market is owned by the top 3 companies ($25.5 -billion)

We can deduct from the above, a fair valuation price for the recreational marijuana sector is at a combined market price for the top three companies $WEED + $ACB + $APH of  about $25.5- billion. 

Today's Market Price of WEED, ACB, and APH:

As of today 11/17/2017 the market price of the top three companies WEED (3.22-billion) ACB ($2.16-Billion) and APH (1.30 -billion) for a total market cap of ($6.68-billion) which is way less than $25.5-billion  fair price we calculated above.

If everything goes as planned by the end of next year 2018 we could have the share price of  WEED, ACB, and APH quadruple. The upside compared to the downside is definitely worth buying here.

At the time of writing this post the price of WEED  ($18.45 Canadian dollar) ACB ($5.51 Canadian ) and  APH ($8.86 Canadian). 

Downside risk management not acting in the best interest of share holders, restricting government regulations, and maybe over production by all suppliers leading to much lower wholesale prices.

Right now this business sector is better than gold!

Please note the above calculations are based on my own quick estimates which could be  somewhat wrong.

I would like to hear what you think about the above assumptions.