Thanks for grabbing your copy of S.M.O.K.E. + F.I.R.E. = PROFITS.

In this special report, I’m going to show you exactly how I identify the most lucrative marijuana investing opportunities…

And how I pinpoint—with shocking accuracy—when these pot stocks are poised to skyrocket.

See, in the world of marijuana investing…

Where there’s smoke, there’s fire.

And where there’s both? There’s an opportunity for investors like you to get RICH.

Allow me to walk you through each of the 9-steps of my profit filter…

1. Sea of Change

In the last few decades, the tides have certainly turned in terms of social attitudes toward marijuana…

But it’s the economic and political attitudes that will ultimately pull the trigger on legalization—and these have been slower to move.

Until NOW.

U.S. legal cannabis sales are projected to top $33 billion by the end of this year…

And the big business interests that really pull the strings in Washington are well aware.

In the last 18 months, two major marijuana reform bills passed in the House of Representatives and have already gained unprecedented support in the Senate.

The sheer magnitude of profits and tax dollars that are now at stake has become the driving force behind marijuana policy change.

Companies who are closely tied to, and most directly benefit government and big business interests—like Banking or Pharmaceuticals—will receive favorable treatment when legislation is passed.

Not only will these businesses be some of the biggest winners when congress flips the switch on legalization…

They’ll also be the ones who stick around and keep dumping more green into investors’ pockets—thanks to stable profits and consistent long term growth.

That’s one reason I’m keen on “wonder drug” biotech pot companies—some of which have already resulted in huge triple digit gains for the folks who follow my work.

2. Management Quality

Quality management means quality business operations and therefore, profits.

This is just as, if not more true in weed businesses as anywhere else…

Yet in covering the marijuana industry since its infancy, one dynamic I’ve noticed is that a lot of cannabis start-ups are run by young pot enthusiasts with little or no corporate experience.

That’s why I’m strict on finding cannabis companies with A-players on their bench.

Executives with a track record of maintaining strong revenues and a solid balance sheet are among the top criteria I look for.

Excessive debt without sufficient revenue to cover liabilities is a red flag. Poor debt metrics usually spell doom and I avoid them at all costs.

3. Oh My God Why Didn’t We Think of That!

Businesses that provide a unique value add or fill a niche that no one else can fill, typically deliver outsized returns.

When it comes to marijuana, as legal restrictions are removed and weed becomes commoditized, it’s also subject to downward price pressures.

Businesses with a unique edge will still be growing profits while everyone else’s margins get slashed.

As such, I look for pot companies with patents, proprietary technology or special managerial know-how.

For example, with cannabis biotech firms like I mentioned a minute ago…

Some of the biggest winners have developed treatments that address diseases other drugmakers have ignored, or whose drugs will ease the treatment regimen or reduce dangerous side effects.

By identifying when companies have unique products in their pipeline, combined with my other criteria, I can pick rocket pot stocks with shocking accuracy.

4. K-Street

It’s all about who you know.

And who you pay.

Even full federal legalization won’t end all the regulatory challenges pot businesses face.

That’s why I screen for cannabis companies with strong Washington and state-level lobbying connections that can help protect against regulatory impediments…

And keep their path clear for growth.

No one knows this trick better than big alcohol and tobacco.

In 2021, alcohol and tobacco companies paid lobbying groups a combined $57 million…

Helping the two industries to rake in a total estimated $249 billion in sales that same year.

The smartest pot businesses are following suit.

Lobbying is more than just a catalyst for industry wide tax relief, banking access, and legalization…

Individual marijuana companies whose interests are pushed the hardest will have the most growth… and the most clout.

5. Earnings Growth

“Micro-cap” stocks have been popping up in the marijuana industry like mushrooms in the rain.

Sure, the pipedream of buying shares at $0.21 and having them shoot up to $5 or $10 is exciting—I mean who doesn’t love a 4600% return?

But I’m still not buying that sales pitch.

Behind the scenes, these are mostly tiny unproven companies relying heavily on credit lines or angel investors to fund their day-to-day operations.

I want businesses that are already making money. LOTS of it.

Because the best indicator of future growth is current trajectory.

That’s why one of my biggest requirements is that a company’s earnings must be growing year-over-year.

Businesses that keep making more and more money each year are proof of a solid foundation…

And 20%… 30%… or 50% annual growth rates are strong indicators of share prices that will continue to shoot up.

If a company’s year-over-year earnings are in the negative—I wouldn’t touch them with a ten foot pole.

6. Financial Players

One major indicator a marijuana stock could be primed for takeoff is the amount of attention it’s receiving from Wall Street analysts.

No, I don’t mean the wannabes opining about weed stocks on social media and message boards…

I’m talking about serious number-crunchers at research firms like Morningstar, Fidelity, and others.

Some incredibly smart folks get paid a lot of money to go through all the details with a fine-toothed comb…

When a whole bunch of them get interested in the same stock, they’re usually onto something.

Similarly, if more investors start shorting a particular stock… it’s likely that stock’s value has become inflated.

I often see a high degree of rising short interest among overly hyped marijuana stocks, as the sharks circle in for the kill.

7. Insider Confirmation

Here’s a sneaky way to get stock tips that not everyone knows about…

Watch what insiders do.

If a company’s CEO, Chairman, or VP’s are loading up on stock…

It could be because they know something’s about to happen.

And at the very least it means they’re confident.

This is even more true in reverse…

If corporate insiders are dumping a stock, they know something the rest of us don’t.

It’s often a tip-off that the people running the company realize that the stock is about to underperform the market.

My simple rule of thumb: Don’t do anything an insider wouldn’t do.

8. Right Price

Seems like a no-brainer, right?

Well, this rule is often ignored.

Investors can get excited about a hyped stock that seems too compelling to avoid. Even if it’s absurdly overvalued.

This truism bears repeating: If a stock is considerably more expensive than its industry or direct peers, or its valuation is greatly out of whack with its estimated growth, stay away.

Before the marijuana market correction of 2019, many marijuana stocks were trading at nosebleed valuations that weren’t justified by projected earnings growth.

Most of those stocks crashed and burned.

The best investors make their money on the buy… not the sale. It’s impossible to do that with an overpriced stock.

9. Execution

This is how I determine the best way to actually carry out a trade…

A lot of people think this part’s complicated, but it’s not.

It IS the part that makes you the most money though…

So pay careful attention and stick with me as I walk you through it step-by-step.

Step I – What price will I buy UP to?

I may find a very promising stock that could be a great buy…

But that doesn’t mean it’s a great buy at just ANY price. There’s a ceiling to what I can pay and still expect a decent return.

Whether I set that limit at $14… or $17… could make the difference between a WINNING trade… or a loser.

This step is where I determine that ceiling.

Step II – Should I make a stock or options trade?

Depending on the stock and circumstances…

It may make sense to choose an options trade.

Without going into a full lesson on options…

The main point is options are powerful gains multipliers—although this comes with added risk.

By determining the upside vs. the risk involved…

I can choose to boost my profit potential… OR just stick with a standard stock trade.

Step III – When to sell?

Sometimes I might buy a stock I expect to do well…

But there’s a small concern that some unexpected factor could cause it to do very badly…

Like a company developing a new space age fabric to make bulletproof t-shirts as light as cotton…

But it’s rumored some of their prototypes have spontaneously caught fire.

In such a case I might use a technique to minimize potential losses called a “stop loss” rule.

That’s where I would set a rule to immediately sell my position if stock falls below a certain price, like say $10.

On the other hand, even when I expect a stock to go up…

I may have my doubts that it can surpass a certain price for very long.

So I might select a “terminal value”— which basically means the exact right selling price to capture maximum profits.

That’s where I would set a rule to immediately sell my position if stock reaches a certain value, perhaps $22 (and BEFORE it starts to go back down).

By considering these elements of trade “execution”…

I know exactly what PRICE to buy at, WHEN I should sell, and what TYPE of trade I should make…

All of which maximize profits and minimize losses.

And THAT’S why execution is the most critical part of my system that’s responsible for making the most money.