Smart investment? Buy marijuana stocks today!

in #investing7 years ago (edited)

Why maruijana stocks are among the best investing opportunities

Not only the plants, but also investing in weed companies itself is starting to grow. Every year you can buy more stocks from different cannabis companies in the US and Canada. Since the 5th of April, the first dedicated marijuana ETF is launched. Participating in this growth market today is one of the promising options for investors. According to data from jointindustries.com, investing in cannabis shares has already yielded a lot. See the figure below.

A fast growing market cannot be found anywhere else, says an analyst against Bloomberg. Until 2025, the market could even double to 40 billion euros.

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The US market for medicinal weed reached a total of 7 billion dollar last year. By 2020 will the market count up to 22 billion dollar, following the data from market researcher Arcview Market Research. The chance of further growth is significant as the market for recreational use of weed will also opens.

A fast growing market cannot be found anywhere else, says an analyst against Bloomberg. Until 2025, the market could even double to 40 billion euros. The only uncertain factor in the US is that Donald Trump's government does not seem to be very open to recreational cannabis use. However in Canada, progressive Prime Minister Trudeau submitted a legislative proposal to legalize the use of cannabis.

The US and Canadian cannabis market are among the most promising speculative growth markets. Investors can already benefit from it because a large number of cannabis producers and suppliers are listed on the stock exchanges. Shares are for sale for everyone.

Because there are so many companies you can invest in with this emerging market, I will give you three established names below. One is a large pharmaceutical company and the other two are pure play marijuana companies. Keep in mind that these companies can be overvalued and sometimes don't make any profit because they are expanding rapidly. The chart data is taken on Monday 5 June 2017.

1. Abbvie (Ticker: ABBVE)

Abbvie is a US based pharmaceutical company that discovers, develops and markets both biopharmaceuticals and small molecule drugs. Abbvie is ahead of the pack in medicinal use because it has a cannabis-based drug on the US market, the FDA approved Marinol. Abbvie is not a pure play cannabis company but it is one of the companies that can take a advantage of an open cannabis market. Abbvie is benefiting from a host of new drugs out of the pipeline, including Marinol. With a dividend of 4% it's a relative safe company that can diversify your portfolio. If you want to profit from the cannabis market but you don't want to take much risk, Abbvie is a good choice.
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2. Canopy Growth Corporation (ticker: WEED)

Canopy Growth is a Canadian producer and retailer of medical cannabis products and oils. Currently it has a 1.2 billion dollar market cap. The company currently has six licensed facilities and approximately 665,000 square feet of production growing capacity. Canopy Growth is one of the market leaders that can benefit from its size. It is an aggressive acquirer and recently did the acquisition of Mettrum Health. With Mettrum Health it increased the number of licensed facilities to six, which gave the production capacity a boost to 665.000 square feet. Besides that, the acquisition of Mettrum gave Canopy access to about the half of the Canadian cannabis market. Being one of the biggest and aggressively acquiring other companies makes Canopy one of the noteworthy companies in the industry
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3. Aurora Cannabis Inc. (ticker: ACB)

Aurora is also a Canadian based company and is half the market cap of Canopy Growth. Despite being half the size of Canopy, Aurora sets its goals to grow fast. Currently, Aurora Cannabis' lone producing facility is a 55,200 square foot facility in Mountain View County. More importantly is the expansion project. Aurora Cannabis is constructing the Aurora Sky, an 800,000 square foot facility that will be the largest and most technologically advanced cannabis production facility in the world. At full capacity, it's expected to generate 100,000 kg of cannabis a year. Aurora Sky could be completed as early as late 2017. The expansion project of Aurora looks very promising for further growth. The capacity of 800,000 square foot and new technology will decrease the production costs of marijuana.
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I hope these investment opportunities will be valuable for you. If you like the content please upvote my article and follow me for more content in the future. Feel welcome to discuss the subject.

Lets keep this BOOMING!
UnknowCrypto

Source listing

https://www.arcviewmarketresearch.com
https://www.bloomberg.com/europe
http://www.google.com/finance

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Do you have any thoughts on MSRT - Massroots Inc?

Hi @danknugs, I think Massroots is a great opportunity to profit from a legalisation. It could be a big (re)seller of pure marijuana. The uncertain factor is that it is located in US. I think in Canada companies are more likely to benefit from legalization in the short term.

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Good analysis! Starting to think about investing now.

Thank you @justinb43, let me know how it will work out!

I wouldn't buy any LP publicly traded stock on principle.
I'm Canadian and have my medical cannabis license and my cannabis grow license. I've been through the system. The Canadian gov't is currently working to secure a monopoly on how cannabis is taxed, grown and distributed in the country and they have pushed out a lot of the small growers and took their genetics. There are a tonne of shady back-room deals going on and kick-backs being paid out. If you look at it from only a financial growth opportunity, I'm sure it's just as good as any other commodity but I still feel the entire thing with the LP's, the 18 cabinet ministers who took cushy well-paid jobs getting the LP's established and the stock-market itself is all rigged.
My currency is in Dopecoin and other crypto-coins.
Thanks for sharing this with me and I have followed you.

Thank you @rebeccaryan, very good and valuable feedback. Thanks a lot!

great info. i may get back into some of these because of it. thank you. upvoted, followed and resteemed.

Thank you @aaronmda for the great support and sharing the content!

Nice, now if only PotCoin could find a way to underpin all this growth...
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there are several big factors that will give prices a rush up! the most important one is the federal government and i think that alone will be huge if pot were legal at the federal level.

Yes, legalisation will be the biggest boost the industry can get! Thanks for your reaction @buguela89, share it with your friends if you want.

I've been thinking of investing in marijuana stocks, especially since I do content marketing for dispensaries. Thanks for a helpful post!

Looking forward to seeing more from you.

Thank you @alexiapbullard, there is definitely more content coming. Thanks for checking out!

Canopy growth is Tweed in case anyone gets confused.. a lot of these companies merged because there is no money in mail order medicinal pot (in Canada) - they are the only one I would buy with federal recreational legalization coming July 1 2018.

@rgeddes, do you mean the ticker must be TWEED? Thanks for the feedback. These two companies are also my only pure play marijuana stocks I would invest in.

No.. The company used to be called Tweed - they secured the symbol WEED on the Toronto Stock Exchange and are now called Canopy. When they were called Tweed they did some big advertising and partnerships with Snoop Dog.. If I was gonna play with any of them that would be my pick :)

Ahh.. didn't know it was first called Tweed. Thank you for the information, very useful!

It will be interesting to watch since we will be the first truly legal western country.. Its got a 1.1b market cap on negative earnings.. its a gamble until they announce how the provinces plan on regulating and distribute it.. Not a bad gamble!

Indeed, interesting times now!

Hi @the01crow, it is not about the cannabis-coin but about the cannabis stocks (real cannabis companies)

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