On July 1, Nevada became the fifth U.S. state to legalize recreational cannabis.
This is going to be another huge cannabis market, fueled by the tens of millions of tourists that visit Las Vegas every year. Right out of the chute, demand is already blowing past expectations.
According to Marijuana Business Daily, sales could reach $75 million in the first 12 months and eventually top off between $450 and $550 million annually as the cannabis trade moves out of the hands of illegal drug cartels and into the hands of law-abiding, tax-paying businesses.
As you can see this is a huge opportunity for young cannabis companies in Las Vegas and Nevada – and an equally big opportunity for cannabis investors.
Let me show you how you can potentially profit.
Terra Tech (OTC: TRTC) owns and operates five cannabis dispensaries under the name Blum. Its largest dispensary – for now – is located in Oakland. Its other four dispensaries are located in Nevada – with three of those location in Las Vegas and the final in Reno.
Take a look below at one if its Las Vegas location. Notice how clean and modern this dispensary is designed on the inside.
Despite its potential, Terra Tech has had a pretty brutal run in 2017.
Shares opened the year trading at $0.35. In May shares bottomed out at $0.16 – a 56% decline.
Those declines were driven by concerns over Terra Tech’s second-quarter earnings report from April.
The problem that has been plaguing Terra Tech is that as revenue grows, so does its net loss.
For example, in the second quarter, revenue was up 340% from the same period last year to $6.8 million.
But while revenue increased, so did its loss.
Net loss increased to $10.1 million from $4.1 million. Earnings fell from a loss of $0.1 to $0.02.
However, it looks like investors are once again getting interested in Terra Tech as the Nevada recreational market takes flight.
On July 3, when reports coming out of Las Vegas showed that early cannabis demand was stronger than even the most bullish projections, Terra Tech got a nice boost, jumping from $0.195 to $0.24, about 23%. Take a look at the nice bounce below.
The Big Picture Analysis on Terra Tech
Terra Tech still has a lot of work ahead to continue growing sales and move into profitability. Right now it looks like this stock is moving back into favor with investors with Nevada going legal on July 1. This could be the spark that triggers a longer-term rally.
Moving forward, I will be advising members of Cannabis Stock Trades on whether this is a long-term holding or a chance to grab a quick profit.