Controversial or not, it’s been tough to ignore the marijuana stock rally.

Now, on October 17, 2018, Canada will legalize marijuana, flooding smart investors with opportunity.

Even without the U.S. fully on board with legalization (yet), sales in North America have been incredibly higher.  In 2017, legal sales were up to $9.7 billion – a 33% increase from 2016.  Going forward, the market could grow at a CAGR of nearly 35% over the next five years. The legalization of recreational marijuana just in Canada is expected to generate $5 billion in sales.  The industry could balloon to $8.7 billion shortly after, as marijuana retail sales just in Canada are likely to surpass beer, wine and spirit sales combined.

Better yet, U.S. states are pushing for further acceptance. Polls show that Americans highly favor its legalization at 61%. Even corporate America has woken up to the opportunity.  In fact, Coca-Cola may be looking to get into the pot-infused drink business.  Beer companies like Constellation Brands just invested $4 billion in Canopy Growth.

And, according to Business Insider, “Legal marijuana could soon become a bigger industry than soda, and it has already started putting pressure on alcohol sales, according to the investment bank Cowen. If marijuana is made legal nationwide in the US by 2030, the legal weed industry could generate $75 billion in sales by that year.”

That could lead to even bigger wins in the sector, especially with stocks that haven’t been caught up in recent moment.  Here are two of them.

MedMen Enterprises (MMNFF)

The $4.25 stock is just beginning to build momentum and could double, if not triple with CGC and TLRY. The company operates 19 licensed facilities in California, New York and Nevada, and recently obtained a license to do business in Florida.   Better still, it noted it landed “prime retail locations” in Florida, with long-term leases in Miami Beach, Ft. Lauderdale, West Palm Beach, Key West and St. Petersburg.

“Florida is the third most populous state in the U.S. with a rapidly growing medical cannabis market and large potential adult use market,” MedMen said in a statement. “The state has high tourist activity and is home to the largest elderly community in the nation.”

The company even just closed an acquisition of a dispensary and a cultivation license from Treadwell Nursery, a Florida company that has been approved to grow marijuana. The license will allow MedMen to open as many as 35 medical cannabis dispensaries in Florida and also grow the plant there.

Then, the company then entered the Arizona medical cannabis market with an acquisition of Monarch. By the way, Arizona is one the largest medical marijuana markets in the country with over 172,000 current patients.

It also extended its operations in Chicago.  Illinois is one of the fastest growing medical marijuana markets in the U.S. In fact, since the year began, qualifying patients jumped 41%.

The best part – it’s still expanding.  And its stock is still dirt cheap, but not for long.

It also has exposure to Canada.

The company teamed up with Cronos Group to form joint venture, MedMen Canada with plans to expand throughout the country.

Plenty of Growth under the Hood

Across the Company’s operations in California, Nevada and New York, systemwide retail revenue was US$19.2 million (CA$25.2 million).

That retail revenue for the quarter is primarily attributable to MedMen’s stores in Southern California’s recreational market. Excluding its Abbot Kinney store, which opened in early June 2018, the Company’s other 7 retail locations reported a combined US$17.4 million in revenue (CA$22.8 million), with an average retail markup over wholesale of 90%.

These seven locations saw 94,000 new customers and nearly 130,000 returning customers, with an average spend per transaction of US$77.76 (CA$102.09), operating at an annualized per square foot revenue of US$6,541 (CA$8,470).

Aurora Cannabis (ACBFF)

Aurora produces and distributes medical marijuana products in Canada. The company’s products consist of dried cannabis and cannabis oil. It also operates as a pharmaceutical wholesaler and narcotics dealer of medical marijuana in Germany and the European Union; and produces and sells proprietary systems for the indoor cultivation of cannabis, organic microgreens, vegetables, and herbs. It’s also a licensed producer of medical marijuana pursuant to the Marijuana for Medical Purposes Regulations and operates a 55,200 square foot expandable state-of-the-art production facility in Alberta, Canada.

According to company, “Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations. The Company operates a 55,200 square foot, state-of-the-art facility in Mountain View County, Alberta, is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third a 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’’s West Island.”

“In addition, the Company holds approximately 9.6% of the issued shares (12.9% on a fully-diluted basis) in leading extraction technology company Radient Technologies Inc., based in Edmonton, and is in the process of completing an investment in Edmonton-based Hempco Food and Fiber for an ownership stake of up to 50.1%. Furthermore, Aurora is the cornerstone investor with a 19.9% stake in Cann Group Limited, the first Australian company licensed to conduct research on and cultivate medical cannabis. Aurora also owns Pedanios, a leading wholesale importer, exporter, and distributor of medical cannabis in the European Union, based in Germany.”

Not only will the company have exposure throughout Canada, but it’s increasing its global footprint as well.