Ross Gerber: Cannabis "a great opportunity" for investors

Consolidation of the Cannabis shares Since its highest lands in February, in the opinion of an investment advisor, offers a lot of potential for long-term marijuana investors who hold. "For investors who think in the long term, this is a great opportunity because the players in the cannabis segment have become stronger in the last year," says Ross Gerber, President and CEO of Gerber Kawasaki Wealth & Investment Management.

"The numbers I looked at for the last quarter were amazing," he added. "And it is very well-led companies that are now traded on multiples that are very reasonable for their short and long-term growth rates."

Last year, Gerber, Gerber Kawasaki has "considerably" bought "significantly" at Cannabis - although it has returned half of these profits in the last year. "I'm about to put the trigger and to increase these positions aggressively," he explained.

Gerber also contradicted the idea that the growth of the US herb market could slow down, even if some Canadian cannabis companies are fighting for profitability.

"There is no slowdown at Cannabis," Gerber said. "I would even say the opposite. The new products that come to the market, such as drinks and some of the new food products, but also the beverage side of the cannabis business is booming. We see that cannabis lounges are now approved everywhere. For example, one in Las Vegas."

Overall, he estimates the US cannabis market to $ 70 to $ 100 billion, "and we only scratched on the surface."

Cannabis companies are "full hits Some Canadian canopis companies such as Canopy Growth (CGC) have already completed contracts to enter the larger US market as soon as the sale of grass at federal level is legal. And as soon as federal legislation has loosened the restrictions on the banking and taxation, "these companies are a direct hit", as Gerber over the mix of North American companies.

However, Gerber pointed to a reservation that could hinder cannabis shares: a delayed marijuana legislation.

Cannabis is currently approved in 18 states for recreational use and in 29 other states in different forms for medical purposes. In Idaho, Nebraska and Kansas it is considered illegal.

"I think the biggest problem is the legislation and the fact that the Democrats really do not come about," he said. "They prove to be awkward, unorganized and basically stupid ... I just feel that they do things like cannabis, which is just a homerun."

Gerber realized that in the next year he expects a certain legislative movement to either lift the Federal Office for Marijuana or to loosen some of the bank restrictions on cannabis companies, which will catalyze the next recovery on the cannabis market.