The cannabis sector, when it comes to investing, is notoriously volatile.
So, what should investors expect from the sector when it comes to growth?
Well, according to TheStreet's Tony Owusu, "the sky's the limit."
But what exactly does that mean?
During TheStreet's and NorCal Cannabis Co. webinar, How to Invest in Cannabis: Separating the Weed From the Chaff, Joel Lunenfeld, CMO of NorCal Cannabis, Action Alerts PLUS analyst Zev Fima, and Owusu broke down what investors should expect in terms of growth from this sector.
"So I can jump on that. I guess, you know, the estimates that we have seen are $ 200 to $250 billion worldwide. I think the way I've seen it though is like, I think that that could prove to be conservative just because if you think about, the real question is what can it displace? So can, can you move people who are on pharmaceutical-grade depression meds onto cannabis or ambient or painkillers? So I think you, or I think, you know, people take it for arthritis, glaucoma, like all these different medicines. So I guess maybe 200 250 billion will be a starting point. Does that, does that? From the research I've seen, we're looking at a 24% compound annual growth rate over at least the next five years. And then what you're talking about is medical, and we're not even talking about recreational food creams. Cannabis is a very, a wide-ranging in a very versatile drug," said Fima.