5 Charts On The Expanding Marijuana Industry

• The latest sales numbers from the Washington and Colorado marijuana industry show the continuing expansion of the industry.
• July retail sales in Colorado and September sales in Washington came in at record highs.
• Chardan Capital Markets believes that the recent fall-off in extract production in Washington could be due to neighboring Oregon’s legalization of recreational marijuana.

A new report by Chardan Capital Markets analyst James McIlree takes a look at trends in the rapidly-expanding, yet controversial world of U.S. marijuana sales. McIlree’s report includes five charts that show just how much the business of legalized marijuana is growing.

Retail marijuana sales (before the 37 percent excise tax) hit a record $36 million in Washington State in September. Sales briefly dipped over the summer when the state increased its excise tax from a 25 percent rate at the grower, processor and retailer levels to a 37 percent tax only at the retail level.

In terms of weight, Washington retailers sold a record-high 7,000 pounds of marijuana in September. Despite the new all-time high, month-over-month was the lowest it has been in about a year.

When it comes to the amount of extracts produced, Washington’s September total continued its month-over-month August decline, falling to around 325,000g. Extract production peaked in July at just short of 450,000g. McIlree suggests that the October legalization of recreational marijuana in neighboring Oregon could be weighing on Washington’s September numbers.

Marijuana data in Colorado is available through July only, but pre-tax recreational sales topped $54 million in July, with medical sales totaling $38.5 million for the month. Both of these totals represent all-time highs.

The number of medical marijuana cardholders in Colorado increased modestly in July, but remains near its long-term average. “Consumption per cardholder has increased dramatically from about $275 per month per cardholder to over $335 in July,” McIlree noted.

Most marijuana-related stocks are small, thinly-traded and extremely volatile, so traders should proceed with caution. The three U.S.-listed marijuana stocks on Chardan’s list with the largest market caps are Full Circle Capital Corp FULL, 22nd Century Group Inc XXII and Diego Pellicer Worldwide Inc DPWW.

Disclosure: the author holds no position in the stocks mentioned.