Canadian CANNAINVESTOR Magazine July / August 2017 | Page 60

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Without doubt, now knowing that regulators will police and even control the upside ROI without hesitation is an unwelcome variable. The point of investing in higher risk ventures is that theoretical unlimited upside ROI potential. As more companies are publicly listed, that means that there is necessarily more competition for the finite amount of investment dollars. If you pour a third of a full glass into two other glasses the total volume of water is the same but now all three glasses are only a third full. All of these factors contribute to the current bearish market as the following expanded graph depicts.

However, it cannot be forgotten that this is the transformation of a black market and although some will choose to be supplied from the black market a far greater number who do not use cannabis may try it or use it instead of more harmful alternatives. The following table, that appeared on CFN’s site, is a reminder of the estimated market for medical and recreational. They key is to select those companies that are most likely excel.