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  • Cannabis Shortages, Demand Increase, And Growing Opportunities In Colorado And Washington State.  0 comments
    Dec 24, 2013 6:47 AM

    I am long PHOT, TRTC, and GRNH.

    Colorado and Washington State face a problem. Recreational Cannabis use becomes legal under Colorado law January 1st, 2014. Colorado demand for Cannabis exceeds previous estimates. This is before the canna-curious, novelty and closet users arrive. Demand may be three to five times estimates.

    Colorado offered a one time allowance of currently growing Medical Cannabis to flow into the Recreational market. This band-aid on a broken leg is not the answer. Colorado residents growing their own medicine is an answer. PHOT, TRTC, and GRNH stand to benefit as sellers of home growing products, cultivation systems and advice.

    Dispensaries expect bare shelves by January 15th. Toni Fox, Denver Discreet Dispensary owner recently told Fox news she expected to be sold out January 6th. Rules governing dispensaries specifically require shops to grow 70% of their product. Would you open a liquor store if required to distill seventy percent of your product? Growing medical grade Cannabis is labor intensive, expensive and requires extensive horticultural knowledge. Growing cannabis is difficult, but when the shelves are bare?

    Current legal structure in Colorado and Washington State will fuel sales of hydroponics, consulting services and growing products. Medical users supply will dry up due to recreational demand. I predict sales growth of lights, grow tents, fans, fertilizers, consulting services, will increase by 500% short term, and grow at a 30%-50% rate through 2017.

    Problems with the implementation of Colorado law, issues with Washington State are solved when consumers grow their own Cannabis. Did I mention no taxation of any type?

    Disclosure: I am long OTCPK:PHOT, OTCQX:TRTC, OTCPK:GRNH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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