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Two Companies Are Joining Forces to Build a Fire in the Marijuana Stocks Market

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When an investor performs proper due diligence into a stock of interest, it’s important to see the potential or lack thereof in business ventures such as adjustments in management, new products, and mergers of varying levels of commitment. The enormous investment of one company lately into a marijuana growing business raised some eyebrows, but, the strategy is worth a closer look.

After their $4 billion investment, what is in store for Constellation Brands’ (NYSE:STZ) and their new asset in Canadian marijuana stock company Canopy Growth Corporation (NYSE:CGC)?

If you’re unfamiliar with the name Constellation Brands, they are most widely recognized under the names of their most popular products like Corona and Modelo. Just last week, they issued a statement regarding their massive investment in Canopy Growth which follows a “smaller” investment (a mere $200 million) the company made for a 9.9% equity position in Canopy Growth last fall.

Constellation CEO Rob Sands was noted as having said about this historically grand investment in the cannabis market, “Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner. Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space. We look forward to supporting Canopy as they extend their recognized global leadership position in the medical and recreational cannabis space.”

Shares in Constellation dropped about 6.1% following the announcement and some believe the price tag is as much to blame as anything else. For the hit Constellation took following the issuance of the statement, Canopy Growth stock rose an impressive 30%; this was aided in part by Constellation agreeing to pay a 37.9% premium of the volume-weighted average price over a five day period for the shares listed on the Toronto Stock Exchange.

Considering other beer companies moving in on the marijuana stocks scene, this deal with Canopy Growth gives Constellation Brands the first-mover advantage and gives Canopy Growth the funding necessary to expand globally

Part of what justifies the high valuation of the 38% stake in Canopy Growth was the company’s early decision to engage in the international marijuana market. This tactic rushed Canopy to the head of the line in its field and made it an attractive choice for companies looking to invest in marijuana for medical and/or recreational use.

Several countries around the world are relaxing their stance on medicinal weed to include Argentina, Austria, Australia, Brazil, Denmark, Columbia, Germany, Greece, Israel, Italy, Jamaica, Lesotho, Mexico, Poland, Puerto Rico, and Switzerland. Add to this list countries developing legalization policies for medical marijuana, such as Ireland, England, France, Portugal, and Spain, there’s a lot of room for Canopy Growth to move overseas with its product. The money received from Constellation Brands will help position Canopy Growth to network with countries seeking medical cannabis as well as further develop their edible product line which is expected to be highly profitable when the recreational Canadian marijuana market opens potentially in October. The presence Constellation Brands has in the consumer goods industry will lend itself well to gathering critical data for Canopy Growth.

Legalization is a factor in the success of Constellation Brands investing in marijuana stocks.

While on the state level, recreational pot is currently legal in nine states and the District of Columbia, federal law is still prohibitive in the United States of a thriving marijuana market.  Even with medical marijuana’s legalization in another 21 states, there are significant obstacles between marijuana businesses and the federal government. Although the DEA still classifies marijuana as a Schedule I drug, the regulations around growing pot for research purposes have relaxed.

Just over half of the American adult population believes marijuana should be legalized, a whopping 61% as surveyed by the Pew Research Center. When looking at specific populations, 70% of millennials and 66% of Generation Xers support marijuana legalization. Perhaps surprisingly, a poll collected by Gallup discovered a rising level of support from Republicans to legalize marijuana. If the legalization effort in Canada goes well, pressure on the States will increase and efforts to avoid a black market and highly increased tourism to Canada to smoke or partake of weed in peace.

All over the country, the wheels are in motion to help get marijuana legalization into action. In New York City, there is a decriminalization effort likely as a reaction to the high enforcement and incarcerations of African-Americans and Hispanics. The number of arrests for marijuana possession are higher than violent crimes.

While it’s impossible to say when legalization will occur, the effects on marijuana stocks will be grandly beneficial; Constellation Brands and Canopy Growth are pre-positioning themselves for the potential boom in the marijuana market.

The market for marijuana is largely taken for granted. The Acrview Market Research data on illegal marijuana sales during 2016 indicates a spending amount of at least $46.4 billion. This astronomical figure means about $150 would be spent by every American to fly so high (last year, Colorado weed sales alone amounted to $1.5 billion). Alcohol sales the same year, a legal substance, rounded out at $223 billion and tobacco landed in the neighborhood of $93.4 billion.

On a national scale, the marijuana market is anticipated to bring in approximately $85 billion yearly which is similar to cigarette sales. Some believe the advent of marijuana cafes or smoke bars would raise the bar to profits resembling the alcohol industry.

Projected profits are, of course, speculative; however, the numbers demonstrate the sheer potential of Constellation Brands and marijuana stocks company Canopy Growth launching ahead of the game.

Alcohol, though a money maker, for certain, is a low-growth market. In spite of this, Constellation Brands’ stock rose over 800% during the last 10 years. Part of this success is due to the acquisition of the Modelo Group beers in addition to portfolio rearrangement to promote further growth.

It’s a win-win set with Canopy Growth benefiting from Constellation Brands’ marketing smarts and Constellation Brands’ gets a leg-up with a successful grower in an effort to provide new products to a public with a growing interest in marijuana products to include marijuana infused beverages and edibles.

As Marijuana Goes Legal Across the Globe, Wayland Group’s Rapid Expansion Positions It For Dominance In The Worldwide Market

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Workers put the final touches on Wayland Group’s new 189,000 square foot marijuana grow and production facility that can deliver 72 tons of product to Canada’s bourgeoning legal adult-use marketplace (Courtesy Wayland Group)
  • The company is contracted to sell 8 tons of marijuana into Canada’s vast legal adult-use market.
  • Has a contract to grow 5 tons of high-grade medical marijuana in Germany.
  • Announced plans for a 300-acre year-round outdoor cannabis cultivation and process facility in Ibague, Columbia
  • Is set to acquire a UK medical cannabis distributor
  • Made its first foray in Australia, expanding its global footprint into the Asia-Pacific market

Investors with a yen for marijuana stocks need to take their eyes off Canada and Colorado for a moment and refocus them on the globe.

That’s because huge new opportunities are springing up worldwide. And, Canada-based Wayland Group (CSE:WAYL) (FRANKFURT: 75M) (OTCQB:MRRCF) is in the heart of the action.

The company’s European footprint is expanding so rapidly, it should consider a name change to Wayland Group Worldwide. In fact, the rapid global growth is beginning to overshow its domestic success.

A Wayland cultivation expert examines flowers from a plant grown in the company’s Langton facility. (Courtesy Wayland Group)

Yet, its home court is where Wayland has opened a huge new 189,000 square foot grow and production facility in Langton, Ontario. It has the capacity to grow 72 tons (66,000 kg) of varied strains of marijuana for the Canadian market each year.

The new facility has a full buildout potential of 924,000, which would push its annual grow capacity well past 100,000 kg.

Its initial capacity is dedicated to making good on its agreements to supply adult-use marijuana to four Canadian provinces.

  • British Columbia (3,622 kg)
  • Alberta (3,375 kg)
  • Manitoba (550 kg)
  • Ontario (37 Ontario Cannabis Store listings).

Wayland Brands Its High-Quality Product

The company made additional news in its domestic market when, October 17, 2018, it announced the release of its brand portfolio.

Already an innovator in cultivation, Wayland brought that same spirt to its retail line. Rather than taking a one-size-fits-all approach, the company took a purposeful, consumer-centric approach and created brands designed to address various segments of the market

This market strategy is one that’s generally applauded by consumer researchers and branding authorities.

Wayland’s brands include these:

  • KIWI – aimed at adults who are light users or who are looking to better understand cannabis.
  • HIGH TIDE – a high-THC cannabis strains for experienced medium to heavy users.
  • NORTHERN HARVEST – a light to medium brand for moderate users who enjoy cannabis.
  • LOST AT SEED – not yet on the market this is meticulously curated collection of the finest and most rare cannabis genetics.
  • SOLARA C – high-quality CBD products
  • RARA DANKNESS – a selection of premium award-winning limited-edition strains.

Aggressively Improving Its Competitive Edge

As lowering cannabis production costs becomes increasingly important with increased competition, Wayland is not sitting on its laurels.

To maintain its edge, Wayland has claimed a stake Colombia, which is a low-cost source for its cannabis offerings in Europe.

To that end, on November 6, 2018, Wayland announced an agreement to acquire Colma Pharmaceutical SAS, a licensed producer of THC cannabis in Colombia.

The acquisition comes with four licenses for cultivation and processing in the western Columbia city of Ibague, which form a triangle on the map with Cali to its south and Medellin to its north.

Wayland expects to cultivate THC cannabis outdoor and year-round with an infrastructure investment that will include a 415,000 square feet of processing and clone and vegetation greenhouse, as well as facilities to support outdoor cannabis flower production on 300 acres.

Wayland’s CEO Ben Ward explained move to low-cost, high-yield production in Colombia this way, “Our move to outdoor cultivation in Colombia is the first step in creating a reliable and consistent mass supply of cannabinoid isolates for the global market, including THC and CBD, and importantly commercial quantities of lesser known CBG and CBN.”

He went on to say that the Colombia acquisition reflects the company’s global ambitions, which are centered in Germany.

“We’ll be establishing a robust outdoor flowering operation as a source of products to be manufactured for global distribution from Ebersbach, Germany. We continue to move aggressively in the international market, creating a global presence, built on a rational business platform of geographic cost centers.”

Wayland’s Latest European Move Is Into The United Kingdom Where Insurance Covers Medical Marijuana

Building on its success in Canada, Wayland has turned its focus on Europe, which is fast becoming an important market for cannabis.

With over 742 million people and combined gross domestic product of EUR 15.3 trillion, Europe’s cannabis market forecast to be worth EUR 115.7 billion by 2028.

In November 2018, Wayland made a potentially exciting move into the United Kingdom when it announced an agreement to acquire 51% of UK based Theros Pharma.

Theros is an early stage company that has successfully imported cannabis to the UK for patients with prescriptions for medical cannabis.

Recent UK legislation allows patients to fill their medical cannabis via a regular pharmacy.

That makes the UK an attractive, fast-growing market, because National Health Service insurance covers medical cannabis.

Wayland’s Successful Model Is Now Spreading Across Europe

While the UK is a new deal, Wayland’s established European footprint spreads out this way:

Germany – production is beginning

Wayland was one of the first Canadian companies involved in the German market.

Wayland is developing a facility in Ebersbach, near Dresden, with a proposed 820,000 square feet of clean-room cultivation, processing, and extraction, including up to 300,000 square feet of cultivation.

Cultivation and production licensing are subject to German government approval.

On October 15, 2018, Wayland announced an agreement to supply a minimum of 9,000 kg (about 5 tons) of EU-GMP certified cannabis dry flower over a three-year term to Cannamedical Pharma GmbH, an importer and distributor of cannabis in Germany to over 2,200 pharmacies.

Wayland is also engaged in hemp operations in Germany through its European nutraceutical subsidiary MariPlant. On August 3, 2018, MariPlant commenced the harvest of approximately 405 acres of hemp.

Switzerland – an important market

Wayland was one of the first companies to recognize that Switzerland will be a key market for the European cannabis industry.

On May 10, 2018, the company announced the acquisition of Haxxon AG, which positions Wayland to operate in the Swiss market through Haxxon’s production of feminized high-CBD cannabis plants.

Haxxon has a 64,500 square foot facility in Regensdorf, a suburb of Zurich.

Of the deal, Wayland CEO Ben Ward said, “A phenomenon has occurred in Switzerland, where people are substituting or modifying tobacco consumption with low THC cannabis (less than 1% THC).”

Italy – Growing cannabis acceptance

Italy, Wayland entered a strategic partnership to take advantage of the country’s increasing acceptance of medical cannabis.

On November 9, 2018, the company announced a joint venture agreement with CBD Italian Factory S.S., a company of Group San Martino.

The aim is to produce high-quality cannabis products by pairing world-leading technology by Rockwell Automation with existing infrastructure in Piedmont.

There, the company will combine agricultural expertise and biogas electricity to sustainably produce CBD and THC products from a naturally-derived fuel source.

The joint venture will be split between Wayland (50.1%) and CBD Italian Factory (49.9%).

A key aspect of the joint venture is a relationship with the University of Eastern Piedmont, which will develop a research center focusing on producing high-CBD products for medical purposes, and further studies of high-THC content and medical uses.

Malta – pure cannabis distillates

To complement its Western European assets, Wayland also received a license in Malta to manufacture finished-dose medical cannabis.

This license allows Wayland to supply its Maltese operation with raw materials that will then undergo advanced post processing to create pure cannabis distillates, allowing for pharmaceutical manufacturing.

Wayland Travels To The Land Down Under To Stake A Claim In The Asia-Pacific Medical Cannabis Market

Wayland topped off a busy 2018 with a statement move that declares its commitment to carving out a profitable share of the global cannabis marketplace.

In early December, it announced an expansion into Australia, which is a move into the important Asia-Pacific region.

The move comes via an agreement to acquire 50.1% of Tropicann Pty Ltd.

It’s a newly formed, privately owned Australian company located in Darwin, Northern Territory. Tropicann’s goal is to partner with industry leaders in Australia’s expanding cannabis industry and to cultivate proprietary cannabis.

The deal will provide Wayland with ideal climate conditions in a globally respected and sovereign country with a large and fast emerging market of over 250 million people.

9 Reason To Add Wayland Group To A Diversified Portfolio 

  1. Pot stocks are sliding back into a value range after the massive runup at the advent Canada’s legal adult-use marijuana market.
  2. Picking a winning stock among Canada’s domestic cultivators is difficult because they are all fishing in the same small pond.
  3. Ontario-based Wayland may be a home- grown, but it is not dependent on the Canadian market.
  4. In Canada, however, Wayland Group is licensed to grow 8 tons of marijuana for sale in four provinces.
  5. Wayland’s Ontario cultivation facility can grow and process up to 72 ton of marijuana a year.
  6. The company has a new agreement to has the potential to grow and process marijuana outdoors on 300 acres in Columbia. That marijuana would be dedicated for processing and sale in Europe.
  7. In Germany, the company is developing a huge cultivation and processing facility that will support its agreement to grow 9,000 kg (about 5 tons) of medical marijuana.
  8. In The United Kingdom, where the National Health Service insurance pays for medical cannabis Wayland has agreed to purchase a startup company that’s seeking a license to cultivate or import medical marijuana.
  9. Now that pot stocks have cooled down, investors have a rare second chance to buy Wayland at a value price before its global revenues begin to flood it coffers.

Value Laden Wayland Is Positioned for Growth

Investors who missed the rollicking early days of Canada’s legal cannabis markets have been given a rare second chance to enter a megatrend.

The valuations of Canadian licensed producers faced a recent reckoning.

Now that the hype surrounding the new legalized market is in the rear-view mirror, companies will need to distinguish themselves with real earnings and by executing on thoughtful strategies for the future.

Wayland has recognized the early-mover opportunity to use its initial success in Canada as a springboard for global ambitions.

Wayland presently trades at less than 30 percent of its January 23, 2018 high of $4.25 CAD, and significantly lower than its 200-day, 100-day, 50-day, and 20-day moving averages.

As the market continues to distinguish between Canadian cannabis companies competing for slices of a relatively small Canadian market and those with global growth strategies and executable international footprints, Wayland’s  global footprint positions the company for significant upside.

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MMJStocks.net is owned by MILLIONAIRE MEDIA LLC., a Nevada Corporation that has been compensated thirty thousand dollars by Rok Marketing Inc. for a period beginning December 11th, 2018 and ending December 24th, 2018 to publicly disseminate information about Wayland Group, its products and services for potential customers and that while the company is publicly listed and its shares can be bought and sold, the purpose of this advertisement it to present information and awareness about Wayland Group. and its products and services. We own zero shares. Click Here For Full Disclaimer.

Beer Company Hops on the Marijuana Bandwagon in Face of Mixed Reviews for Cannabis Stocks

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While the debate rages on as to whether or not cannabis stocks are a wise investment, various companies are taking their chances and gambling for the potential opportunities of a booming marijuana market. Considering legal, adult-use marijuana goes on sale in Canada this coming October, speculation abounds for the payoff to marijuana stocks investors.

While marijuana remains a DEA Schedule I drug according to the federal United States government, entrepreneurs and cannabis stocks investors are testing the waters for what is believed to be a highly profitable market. 

Some believe the DEA schedule for marijuana is unlikely to change as the taxes charged to companies selling what is, essentially, an illegal substance are more profitable than even projected sales for legal marijuana. More detail on this concept is offered in previous article Why Would Congress Avoid Legalizing Marijuana?

There’s more going for the cannabis market than medicinal, dried products. Oversupply of dried flower products have demonstrated pricing issues in states where these sales are legal such as Colorado, Oregon, and Washington. Growers crossing their fingers for legalization and accompanying rising sales require new methods for marijuana use.

Among the legal, more popular options for cannabis use is CBD oil. The buzz for the use of this product to help treat a variety of ailments has only increased over the past year. This market is primarily targeted for those seeking the medicinal properties of marijuana use and, yet, is still in a position to avoid the pricing pressure seen with dried products. CannTrust Holdings (NASDAQOTH:CNTTF) is one growing company planning to adjust its approach to committing a large portion of their yield to this CBD oil market as the company expands.

Marijuana stocks investors are turning their attention to companies open to alternative products ranging from vape cartridges, edibles, and infused-beverages.

While this is an innovative approach, cannabis stocks investors should take note the edibles and infused-drink products will not be legal in Canada even when the fall season of adult-use legal marijuana sales comes to pass; there are amendments within the Cannabis Act which open the discussion for these products within Parliament at a later date during 2019.

However, the alcohol industry which has been subject to a similar process as marijuana legalization, is hopping onboard the green wave with hopes for change on the horizon.

As is perhaps of the fate of all potential vices, once the mystique of elicit behavior has worn off in the face of legalization, sales growth ceases to enjoy the surge of earlier days. Alcohol companies are looking for ways to set themselves apart from the flood of competitors.

Savvy marijuana stocks investors will notice the tricky position in which the alcohol industry finds itself. The potential for legal cannabis just might decrease interest in alcohol and, therefore, injure their already stagnating sales growth. Making mergers with marijuana companies is a bit like saying, “Well, if you can’t beat them, join them,” and cannabis stocks investors will do well to study these collaborations for future market potential.

Companies like Constellation Brands (NYSE:STZ) are among the few producers of alcoholic beverages attempting to think outside the bottle by joining forces with marijuana stock company Canopy Growth Corp. (NYSE:CGC).

Constellation Brands makes the popular beer brand, Corona, as well as other spirits. The company took a 9.9% equity stake in Canopy Growth (a price tag which adds up to approximately $190 million) in addition to acquiring over $150 million in Canopy Growth’s convertible debt. The purpose of this type of merging is to collaborate on new products for markets where cannabis is already legal.

Additionally, Molson Coors Brewing Co. (NYSE:TAP) is taking a similar approach in league with Hydropothecary Corporation (NASDAQOTH:HYYDF). Hydropothecary is not a top-10 producer when it comes to annual production which, perhaps, caused some marijuana investors to scratch their portfolios, puzzled. Still, Hydropothecary has a 200,000 kilogram supply deal with Quebec over a five-year period. Perhaps the beer company felt this fact was convincing enough to choose the underdog company for marijuana-infused product expansion. Considering Molson Coors experienced their worst single day loss in 13 years this past spring, they might be searching for all the help they can get to boost their stock.

The newcomer to marijuana stocks expansion is popular green-bottled light brew company, Heineken (NASDAQOTH:HEINY).

Although Heineken performs well in other parts of the world, Heineken USA had a high single-digit decline in beer volume. Infused-beer products appear to be an opportunity for Heineken to ride the swelling tide of marijuana sales.

Just last month, Heineken introduced a non-alcoholic cannabis drink in select dispensaries within California. Heineken made use of its wholly owned craft-brewing brand, Lagunitas, to launch the new beverage which is meant to taste like beer called Hi-Fi Hops. Time will tell if customers appreciate the new product which can be purchased in two different forms: a 10 mg version containing the chemical which is associated with the “high” sensation of marijuana, tetrahydrocannabinol (THC) or a 5mg hybrid containing equal parts THC and CBD. At $8 per can, this new concoction is a luxury and, yet, distributors cannot keep it on the shelves.

Legalization timeframes for edibles and infused drinks is nowhere set in stone which should provide adequate caution to marijuana stocks investors to assess the risk involved with buying stocks based on innovation alone.

Next year is no guarantee for Canada to legalize more than adult-use marijuana. It could take some time before these new products have the opportunity to make noticeable profit improvements for companies like Constellation Brands, Heineken, and Molson Coors. Additionally, these profit improvements are projected based on an assumption these products will prove popular enough with the public to really make a dent.

Why Would Congress Avoid Legalizing Marijuana?

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2018 demonstrated a considerable amount of progress in the legal marijuana market. Investors in this market had front row seats for the historical movement of marijuana stocks relegated to OTC upwards and into legitimate stock exchanges. States have fallen in line with making medical marijuana available for citizens in need and the state of Vermont made adult-use marijuana legal. Things are looking sky high for the green, and, yet, Congress appears to have stalled out on progress with making changes to the legal aspects and schedule designation of marijuana.

As marijuana stocks legitimize and the legal marijuana market booms, what would keep Congress from moving forward with legalization?

The state of Vermont made history with its legalization efforts for marijuana and at least 30 American states are on board with medical marijuana in some capacity. In spite of how the people of this democracy have spoken about the benefits and uses of marijuana, the plant remains on the Schedule I DEA shelf with the likes of heroin and ecstasy.

This distinction insinuates the federal government does not recognize any medical benefits to marijuana use. This is contradictory to the U.S. Food and Drug Administration June 25th approval of the cannabidiol-based Epidiolex drug created by GW Pharmaceuticals (NASDAQ:GWPH). Staring the government in the face are multiple clinical-stage trials demonstrating a remarkable decrease in seizure frequency for Dravet syndrome and Lennox-Gastaut syndrome patients against placebo groups.

The democratic system is failing when it comes to pubic opinion about marijuana. Five national American polls demonstrate widespread favor for legalizing marijuana. According to one survey, 9 out of 10 American adults believe marijuana should be legalized; that’s a whopping 85%.

In spite of the success of marijuana stocks and markets in the United States and the progressive efforts of cannabis legalization in Canada, the echoes of Prohibition are witnessed.

During the beginning of Prohibition in 1920, it took the span on only one year for Nevada’s population of 90K residents to have 10K prescriptions of “medicinal alcohol” dispensed. Sounds a bit familiar when you look at what’s happening with marijuana in the U.S.

Some federal arguments claim legalizing marijuana would have a detrimental impact on teenagers. This assumption implies adolescents would have access to marijuana via older relatives or friends. According to some studies, there is a non-conclusive chance regular marijuana use during adolescence may damage long-term memory. Likewise, legislators are under the impression marijuana will impact motorists behind the wheel. Of course, there are laws regarding alcohol use and driving, so, this particular “concern” as an obstacle between legalization and regulation is somewhat lacking. Guidelines for cannabis use would be required just as they are in place for the use of alcohol; for example, as one’s blood alcohol content may be tested, a similar precaution for levels of THC would need to be determined.

Moreover, those in charge of writing the rules have the marijuana stocks industry in a headlock. There is a strong-willed call for comprehensive clinical data to evaluate the risks and benefits of cannabis; however, the process to receive the go-ahead for these studies is arduous and there is only one grow farm in America with testing supply at the University of Mississippi.

It may interest marijuana stocks businesses and investors to consider the actual obstacle in the pathway of legalized cannabis in America is all about tax dollars.

The idea of maintaining Schedule I status for marijuana for tax purposes probably sounds confusing. It would stand to reason the government could tax the legal product and watch the money roll in. As it turns out, the federal government may actually make more money by maintaining their current position on weed rather than acknowledging the desires and preoccupations of the people.

Per section 280E of the U.S. tax code, businesses selling a Schedule I drug or a restricted, yet, legal Schedule II chemical or drug, are not permitted to take out the standard corporate tax deductions. The tax rate for these kinds of business skyrockets to 70% – 90%. Keeping marijuana popular, but, illegal, provides a heavy dose of tax revenue.

One senator, Cory Gardner of Colorado, stuck his neck out during the revision of the Tax Cuts and Jobs Act in December of 2017. The senator from a state which has legalized marijuana proposed an amendment to permit marijuana-based companies to take out normal tax deductions provided they complied with state law. Allowing for this amendment could cost the Feds approximately $5 billion dollars in tax revenue.

The future for marijuana stocks is uncertain in the current political climate; there is, however, some surprisingly good news.

President Trump has, thus far, appeared to take a positive stance on legal pot. When asked about his thoughts on Senator Gardner’s proposal, he indicated he was likely to support it. This statement took the wind out of Jeff Sessions’ sales as he prepared for his crusade on cannabis in America. It remains to be seen who will win this fight – the people, or government tax money.

Will FOMO Drive Once-Questionable Pot Stocks Through the Roof in the US? These 7 States Are Up for the Challenge

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Investors used to think coming within a 10 foot bean-pole of cannabis stocks was a terrible idea. These days, as the stigma around marijuana begins to shift under the touted health benefits of CBD products and low-dose THC treatments for various serious medical conditions, investors are starting to shift to a green mindset.

Jeff Sessions’ attempt to reverse the Obama-era policy regarding state legalization terms for recreational and medical marijuana is buckling under the undeniable financial potential for marijuana stocks.

Most eyes are set on Canada as of late when it comes to cannabis stocks following the recent legalization effort for recreational marijuana. According to GMP Securities, the target market size for Canada by 2022 sits at around $6 billion in sales. This figure reflects what the American pot market looks like today and is anticipated to increase to $20 billion by 2022, according to analyst Robert Fagan. He went on to note how the public market value of the U.S. sector may rise to $50 billion which is 10 times more than what it is right now.

The enormous potential for financial gain has inevitably impacted the American government’s view on cannabis. With Trump pulling his support from Jeff Sessions’ crusade against weed, marijuana stocks have a leg up.

There are at least 7 states poised to earn an increasingly high number of dollars for marijuana stocks investors.

According to an ArcView Market Research and BDS Analytics report, the 7 states which are anticipated to make at least $1 billion in sales by 2022 are as follows:

#1: Arizona is already making profits on the medical marijuana market boosting American cannabis stocks.

Marijuana spending in the state of Arizona came out to $461 million just last year. This number is anticipated to increase to $1.2 billion in the coming 4-5 years. These figures are calculated with the expectation of the state legalizing recreational marijuana in the coming years as well. This legalization effort is not expected to take place, however, until 2021.

#2: California has connections to Canadian cannabis stocks companies and already brings in billions of dollars in marijuana sales.

Least surprising on this list is likely the state of California where marijuana spending amounted to $3 billion just last year. With 2022 as the guidepost for projections, analysts feel the market in CA will increase to $7.7 billion. Calculated into this figure is the recreational marijuana market which opened to the public near the beginning of 2018.

#3: Colorado has turned the heads of marijuana investors having made over $1 billion in marijuana sales during 2017.

Colorado raked in $1.5 billion last year which totals in both recreational and medical cannabis sales. By 2022, this number could blow up to $2.5 billion. When it comes to total output of the marijuana industry in Colorado, the figures are projected to round off to $4.6 billion by 2022. The market in Colorado is more established than the California market which lends some credibility to the gap in projections.

#4: Florida is one of two states representing the high potential for the marijuana stocks market on the East Coast.

Florida cannot boast the same billions of dollars as the first three states on this list; however, the estimated $192 million of medical marijuana purchased last year is nothing at which to turn up one’s nose. Projections for 2022 do suggest the first $1 billion will be reached with a total output of just over $3 billion.

#5: Massachusetts is the second state on the East Coast projecting large contributions to American marijuana stocks.

Though the market size rounds up to $151 million during 2017, the recreational marijuana market just launched in July of 2018. With this in mind, the anticipation for 2022 spending is $1.2 billion; total output closes in on $2.3 billion.

#6: Michigan may surprise marijuana investors when they learn the state has one of the largest medical marijuana markets in America.

Medical marijuana spending in Michigan amounted to $812 million last year. Add to the vote coming up in November of 2018 for legalization for recreational marijuana (which is likely to be approved), Michigan marijuana spending could rise to $1.4 billion with a total output of $2.6 billion by 2022.

#7: Washington state catches the interest of cannabis stock investors as both medical and recreational marijuana are permissible.

$934 million was spent last year by residents of Washington state just shy of the $1 billion marks made by California and Colorado. By 2022, analysts suspect that Washington could still rake in marijuana spending at $1.5 billion and a total output of $2.8 billion.

Keep close watch on marijuana stocks in the next year as the tide continues to turn in favor of legalization one state at a time.

Look out for those innovators sitting on the sidelines now, but, poised to jump into the burgeoning markets of 2022. For example, take a peak at Friday Night Inc. (CSE:TGIF) (OTC:TGIFF) as they expand into Las Vegas following the approval of appropriate licensing.

To learn more about marijuana stocks working their way over into the U.S. markets, read Canada Has Stateside Competition: Stocks To Watch With Strong Connections To the American Cannabis Market.

3 Reasons Why Now May Be The Best Time To Invest In Willie Nelson’s Marijuana Empire

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While it may seem common knowledge to many conscious members of the medical and recreational marijuana communities, it is still well worth talking about the fact that, of course, Willie Nelson has his own line of marijuana products. It’s even more worth talking about now because Willie and the company have just expanded to include an entire lineup of CBD products making the company a smarter buy today than ever before.

Willie’s Reserve and Willie’s Remedy, flagship brands both owned and operated under the umbrella of GCH, Inc., now reign more supreme than ever as two of the smartest, sustainable pot stocks to buy in 2018.

This recent case of brand acquisition initiated by CBi2 Capital and 51st Parallel is a great sign for both of Willie’s brands as well as their profits and reach. CBi2 Capital and 51st Parallel have recently created LivWell International as part of this acquisition of both of Willie’s lines of cannabis products and have plans to expand into Canada. Their timing couldn’t be better with the recent legalization status in the country and their thorough business plan shows some impressive long-term planning. Their entry on the ground-floor, so to speak, of Canada’s cannabis retail industry should provide them solid footing in the decades to come despite the potential for future market over-saturation.

The name recognition offered by both brands has big implications for the sustainability of this business and will likely only increase on the unfortunate, but, inevitable day when Willie passes on from this world on to the next big adventure. Between the proven big-picture business plans of LivWell International, their impeccable timing into the Canadian cannabis market, and the untouchable legend of Willie Nelson and his music, LivWell has some understandably “high hopes” of dominating both the medical and recreational cannabis markets in the near future. Their ceiling on sales is also practically nonexistent now as the Willie’s Remedy line of products is entirely CBD-based and even more widely available for distribution in Canada and the United States.

The founding of LivWell International as part of this acquisition process means another key player in the world of the best marijuana stocks investments. 

“This is a highly transformative transaction for our company and our shareholders. The LivWell team is recognized as the most accomplished operator in the global cannabis industry, bringing the experience and knowledge needed to position LivWell International to compete with other industry leaders. The investment into GCH, the owner of Willie’s ReserveTM, represents the beginning of a broader brand strategy to augment our existing retail and distribution plans. In the coming years, we expect the cannabis industry to function in a manner consistent with the consumer packaged goods space in which premier brands will be positioned to dominate consumer market spending,” confirmed Sonny Mottahed, Chairman, President and CEO of CBi2 and CEO and a director of 51st Parallel.

John Lord, the Chairman and CEO of LivWell International added in response, “We are excited about this transaction with CBi2 and 51st Parallel. The upcoming federal legalization of the Canadian cannabis market provides a unique opportunity to leverage our ten years of operational expertise and expand the full suite of LivWell brands across Canada and internationally. We look forward to creating a successful, high-growth business and delivering value for both our customers and shareholders.” LivWell Enlightened Health has remained a private company until now and is already worth nearly $300 million. The company will transition to being publicly traded with these new developments.

The move to expand Willie’s brand to include CBD-rich products, such as artisan coffee, has clearly instilled confidence in all parties involved in these business proceedings and solidifies LivWell as a top choice for investing in marijuana stocks.

Willie himself seems to be excited and confident in the growth of his cannabis empire and these new business ventures. In a recent promotional video posted online, he had this to say: “I bought enough of it, so, I feel like I should be able to sell some back… It’s two of my favorites, together in the perfect combination. Like coffee, cannabis is a plant that works for me.”

LivWell Enlightened Health originated as a Denver, Colorado based company and has already succeeded in becoming one of the best known brands in medical and recreational marijuana in America. Their merging with CBi2, 51st Parallel, GCH, Inc. and Target Capital just about insures the company’s long-term success as all 5 of these establishments have proven track records and have all pledged full funding for LivWell International and its all-encompassing business plan; one which includes “expected annual cultivation capacity of ~32,000 kg of dried flower and annual extraction capacity of ~10,000 kg, as well as a broad retail footprint consisting of eight applied-for locations throughout Alberta and two high profile locations identified in British Columbia.”

At this current juncture in the legal cannabis market landscape, making investments in joint (no pun intended) business ventures  including time-tested, high-quality lines such as Willie’s Reserve and Willie’s Remedy, like LivWell International, may come in first as the best marijuana stocks investment strategy.

Though it may seem oversimplified, the tagline for Willie’s Reserve of “my stash is your stash” sums up quite well just what makes LivWell International one of the most promising marijuana stocks to buy. Their ideal audience is much wider than most competitors and their accessibility will continue to skyrocket with their new and improved reach into Canada and the American states where products containing THC are not yet legal.

How To Create a Smart Investment Strategy for Marijuana Stocks

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It’s interesting enough to read through lists of the best stocks to buy when it comes to investing in marijuana stocks, but, how does one actually get started? The United States has already invested a whopping $3 billion in pot stocks during this year alone. What are the major differences in the marijuana sector which separate trading cannabis stocks from technology or commodity stocks?

The first step of developing a smart investment strategy requires understanding the difference between marijuana stocks and various other “traditional” stocks.

Stocks which are traded on the New York Stock Exchange (NYSE) or NASDAQ must fulfill specific requirements to be admissible. Most marijuana stock companies, with the exception of companies like Cronos Group (NASDAQ:CRON)GW Pharmaceuticals (NASDAQ:GWPH), and Canopy Growth Corp. (NYSE: CGC), are not able to meet these requirements and are, therefore, listed largely on Over-The-Counter (OTC) stocks or, most commonly called, “penny stocks.”

Marijuana is still considered a DEA Schedule I drug and, therefore, illegal on the federal front in the United States. This prohibits many cannabis companies from having the same resources as other traditional businesses (such as access to banking services). The government still requires income taxes from these businesses and, without the ability to take out the traditional business deductions from their returns, pot stock companies take a big hit (in the worst possible way). Their stocks can trade on the OTC since the SEC rules are not as restrictive as the NYSE or NASDAQ.

A cheap stock should not automatically indicate a “bad stock,” though, penny stocks do come with higher risks and volatility. Leslie Bocskor, an investment banker and the President of Electrum Partners interviewed with Benzinga and noted, “There is a prejudice against low priced stocks that I think we need to get away from as an industry and start looking towards reverse splitting our stocks, having fewer numbers of shares and higher prices because the optics on it are better,” Bocskor voiced.

For the new or risk-averse investor, there are marijuana ETFs from which to choose vetted by analysts prior to inclusion in the fun.

Performing due diligence and research on what cannabis stocks to buy takes time and energy. For those who want to get started investing in marijuana stocks without very much capital or time, there are exchange-traded-funds, or ETFs, geared towards making investments in the marijuana sector. Specialists will pre-select stocks based on thorough company research.

Among the options to consider are Evolve Marijuana ETF (SEED.TO),  the ETFMG Alternative Harvest ETF (NYSE:MJ), and the Horizons Marijuana Life Sciences Index ETF (OTC:HMLSF) (TSE:HMMJ).

When researching marijuana stocks to invest in, what does it take to weed out the bad seeds?

Read up on the companies in which you are interested and remember to verify your sources. After all, if a rave review article on one stock was written by the company or a paid affiliate, you may want to seek out a less biased opinion about the stock and listen to your own gut when reviewing the business practices of the company in question.

Many eyes are turning to Canadian weed stocks in light of the recent legalization of recreational marijuana just this summer. Some analysts feel this strategy makes sense, but, Canadian stocks are overvalued without the performance to justify the investment at this time. Canada may have some competition in the states if one researches the California cannabis market all on its own and how profitable it has been in spite of the DEA Schedule.

As with any kind of stock, never invest more in marijuana stocks than you can afford to lose.

After finding a company which intrigues you, a company you want to see succeed, consider your own success – don’t put all your dollars into one stock if you need all those dollars. Marijuana stocks are not a “get-rich-quick-scheme” and only time will tell how their performance will add up for businesses and investors alike.

The stock market is unpredictable no matter how much effort you’ve put into your research. In such a new emerging industry, it’s nearly impossible to pick downright winners, so, prepare yourself to exit and start over based on how your cannabis stocks play out.

Finding a qualified financial advisor could be one of the smartest steps of a marijuana stocks investment strategy.

Finding an experienced advisor who specializes in choosing marijuana stocks could be an invaluable asset to cultivating your cannabis portfolio. Choosing an advisor of the caliber of individuals, resources, and groups such as Jeff Siegel, Green Chip Stocks, and The Cannalysts would be a great way to get started.

Siegel would recommend stocks such as Innovative Industrial Properties (NYSE:IIPR) and MariMed (OTC:MRMD). Still, remember growers are not the only options for investing in cannabis. To learn more about other ways to get your foot in the door with investing in marijuana, read Is Now the Right Time to Invest in Marijuana Stocks?

Lastly, find a good broker when trying to get in on the marijuana stocks scene.

If you are new to investing, a broker could be an essential ingredient to your success. There are traditional, in-person brokers to scout as well as online options. Whatever makes you the most comfortable will be an asset to your journey into marijuana stocks.

Thoroughly review what your options in brokers offer and evaluate the fees against the potential rewards. Find out if they provide research services and if you’re in a position in which this would greatly serve your goals.

When It Comes to Stocks to Buy Now, Who Wins? Aphria or GW Pharmaceuticals?

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Marijuana industry analysts and investors looking for marijuana stocks to buy often engage in comparisons of similar stocks, weighing out which is the better stock option. Sometimes, the stocks in comparison visibly have a lot in common and other times, upon closer inspection, the stocks bring very different options to the table.

The differences of options are more evident in the case of GW Pharmaceuticals (NASDAQ:GWPH), a biotech focused on cannabinoid, and Aphria (NASDAQOTH:APHQF), one of Canada’s largest marijuana growers.

These big players may have the MMJ industry in common, but, their models for conducting business within the industry are strikingly different. The winner this year, by far, for investors in marijuana stocks, has been GW Pharmaceuticals. The biotech’s share price has been climbing, currently up more than 10%. Aphria’s share price, on the other hand, has declined by almost 40%.

The question remains, however, how do these two cannabis stocks compare when looking at the overall picture and long term potential of either?

What GW Pharmaceuticals (NASDAQ:GWPHhas to offer as a marijuana stock to invest in:

The truth is, the release of Sativex, GW Pharmaceuticals’ first cannabinoid-based drug, has not proven very profitable. While Sativex, which is used to treat spasticity in multiple sclerosis patients, is on the pharmaceutical market in a few countries, it is not sold in the U.S. This factor could change fairly soon, however, and GW may see the profits come rolling in, thanks to a recent turn of events for the biotech.

In June, GW won approval from the FDA in the U.S. for its drug, Epidiolex, which was created to treat two rare forms of epilepsy, Lennox-Gastaut syndrome (LGS) and Dravet syndrome. This FDA win made its own history, as Epidiolex officially became the first among cannabinoid, plant-based drugs to receive this approval in the U.S. The drug faces a final hurdle, however, before it will be able to reach the market. It must be classified as a narcotic by the DEA into one of the five schedules.

Epiodiolex has the potential to bring in annual sales in the ballpark of $1 billion; a few analysts suggesting the drug’s prospects are even greater than this estimation. One market research firm, EvaluatePharma, placed Epidiolex near the top of a list of ten of the biggest new drugs to launch in 2018; the research firm predicts sales for Epidiolex will near $1 billion in four years.

The hope for GW Pharmaceuticals is Epidiolex will also win approval to treat the same rare forms of epilepsy in Europe. The company must wait until early next year before a decision is made by the European Medicines Agency. In the meantime, Epidiolex is under evaluation in another of GW’s clinical studies, to see if the drug may also be used to treat tuberous sclerosis, a genetic disorder involving benign tumor growth on different body parts. Currently, the drug is in phase three of the clinical study.

The biotech continues to work to bring more cannabinoid drugs to the market. GW still hopes to bring Sativex to the U.S. market, to treat spasticity in MS patients; currently, the drug is in phase 3 of a clinical trial. The company is also interested in developing a cannabinoid-based drug to treat schizophrenia, epilepsy, autism spectrum disorders, neonatal hypoxic-ischemic encephalopathy (HIE) and glioblastoma.

What Aphria (NASDAQOTH:APHQF) has to offer as a marijuana stock to buy:

While Aphria’s stock has not performed as well as GW Pharmaceuticals’ this year, the major grower anticipates seeing revenue growth through the roof in the coming quarters. By the time of Aphria’s Q3 report in April, the company’s sales were at a record high, a solid CA$10.3 million. Yet compared to what is likely coming for Aphria by the end of this year, even this all-time high may look like chump change in comparison.

Then, there’s the long-awaited opening of Canada’s recreational marijuana market coming in October, of which Aphria has strategically positioned itself to capture what appears to be a sizable market share. Owing to a recent partnership with one of North America’s largest wine and spirits distributors, Southern Glazer, Aphria also seems poised to reach a wide base of retail customers.

Additionally, Aphria has worked aggressively to ramp up its production capacity ahead of the country’s high anticipated demand, not only for recreational, but, also medical marijuana. By the beginning of next year, Aphria intends its capacity to be 225,000 kilograms annually.

However, the greater opportunities for growth lie beyond Canada, where Aphria has turned its focus. With medical marijuana legalized in Germany last year, Aphria saw the opportunity to step into one of the fastest-growing MMJ markets in Europe and acquired Nuuvera (NUU), a fellow Canadian grower with ties to the German market. Aphria may have stepped back from initial expansion plans in the U.S. after the Toronto Stock Exchange threatened to delist stocks with ties to the States; however, pending federal changes to marijuana laws in the U.S., the company should not have a difficult time assuming its plans for expanding into the U.S. market.

Another possible strategic partnership may also be on the horizon for Aphria. Molson Coors Brewing (NYSE:TAP), a major company in the alcoholic beverage industry, has reportedly engaged in talks about investing in the development of beverages infused with cannabis with several of Canada’s marijuana growers. Of the growers, Aphria is thought to be one of Molson Coors’ top choices to partner with in seeing this plan through.

Which is believed to be the better marijuana stock to buy?

By now it should be clear to see either of these two cannabis stocks come with their own risks and perks. GW Pharmaceuticals may face challenges winning approval for Epidiolex as a treatment in Europe and, therefore, difficulty securing reimbursement for the drug. Aphria runs the risk of oversupply in the next several years should the company’s production exceed domestic and global demand.

Based on what we know, however, it seems GW Pharmaceuticals may be the better positioned of the two stocks when it comes to meeting expectations. This clearly does not come with a guarantee, but, Aphria’s risks outweigh GW’s. For one, GW faces far less competition as a biotech than Aphria as a grower. Should the partnership with Molson Coors come through for Aphria, of course, the company’s stock might shoot skyward; however, taking a longer perspective, GW Pharmaceuticals still seems to come out with better prospects.

(For another stock comparison, read How Does Aphria Marijuana Stock Match Up to The Hydropothecary Corporation?)

Canada Has Stateside Competition: Stocks To Watch With Strong Connections To the American Cannabis Market

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Before and after the passing of The Cannabis Act, Canada dominated marijuana stocks news, and rightfully so. Becoming the first industrialized nation to legalize recreational marijuana is a historical motion with the potential to assist other developed nations to loosen up their criminalization of cannabis. Canada stands to add $5 billion in annual marijuana sales which has greatly excited growers, suppliers, and, of course, investors.

While Canada marijuana stocks news eats up the spotlight, there are connections to the States which cannot be ignored when looking at stocks to buy now.

Even though the market expansion for Canada is predicted to be huge, the annual cannabis sales of one American state still outrun these predictions.

California voted 57% in favor for Prop 64 to legalize recreational marijuana. California is the fifth largest GDP economy in the world – bigger than all of Canada. The sales from pre-approved, licensed dispensaries of adult recreational weed in the Golden State are anticipated to possibly exceed $5 billion next year.

In spite of the Feds trying to break in on the use of what is still a Schedule I drug in America, the good times in California continue to roll with a market opportunity to surpass the profitability of the legal Canadian market. It’s strange to find the focus on cannabis stocks seems to drift away from California in light of this information.

Marijuana businesses in the United States continue to face complications where other major stocks companies are unaffected.

Weed companies operating in America do not have access to legitimate banking services and the major branches are still concerned about associating with what would be considered criminal activity. If the the scheduling of marijuana were adjusted, the stocks for marijuana companies would get a bigger boost. Due to US Tax Code 280E, marijuana businesses are not eligible for traditional business deductions and Uncle Sam has no problem, no matter what they’re selling, taking their money out in high income tax rates.

Nonetheless, the California market appears to stand strong in the face of these obstacles.

One marijuana stock with a large focus on the California market is MedMen Enteprises (NASDAQOTH:MMNFF).

MedMen has a broad reach as the largest American cannabis initial public offering in all of Canadian history. With operations in New York and Nevada, the company smartly has eight locations in Southern California (four of which are located in LA). MedMen sells high quality weed products at American dispensaries.

A partnership with Canadian brand Cronos Group (NASDAQ: CRON) has propelled the company into the modern marijuana market freeing up capital from its recent IPO to expand. With this expansion effort will inevitably come a period of intense outflow payments; $43 million was spent during the same six-month time frame when $8.4 million was collected from sales income. However, the personality of the MedMen brand works to debunk stereotypical perceptions of marijuana use. This choice in branding may offer the company the edge it will need to survive bumps in the market during times of recession.

While it could take time to see profitability from this company, its selection in focusing on the California market as well as its branding smarts may make it a stock to watch over the next few years.

The Canadian marijuana stock company CannaRoyalty (NASDAQOTH:CNNRFhas invested heavily in the potential of the California market.

CannaRoyalty has a presence in six American States with the laser focus shining on California in the hopes of becoming the Golden State’s top demand distributor (it’s going to be a steep competition).

Considering few distributors function as middlemen in the industry, CannaRoyalty may have a unique advantage. The CannaRoyalty company specializes in equity and debt financing for growers. They earn a royalty on the net sales of products from marijuana businesses looking to expand. Additionally, they wholly own 10 subsidiaries which, when combined with business practices, the company needn’t be concerned about whether or not a few of the businesses they help tank.

While CannaRoyalty touts more than doubling sales during the first quarter last year, their per-share net loss rose seemingly in tandem to 0.10 Canadian dollars. It might not be a no-brainer buy at the moment, but, this stock to watch has potential in the coming years.

Underdog marijuana stock company Sunniva (NASDAQOTH:SNNVFmay have everything going for it to include a concentration on the California market and a supply deal with a big name cannabis company.

Sunniva is a North American grower with a lot of attention paid to their construction project in the works of a 489,000 square feet greenhouse campus in Cathedral City, California (complete with on-site dispensary). Wisely, the company has in place a two year supply agreement with Canadian cannabis giant Canopy Growth Corporation (NYSE:CGC) permitting the purchase of up to 90,000 kilograms of Sunniva’s wholesale production during the period of time established in the agreement.

The company just added plans for an extraction facility last month which may turn out to be a wise investment. Dried cannabis products are subject to commoditization in a way extracts are not.

These are several smart stocks to watch for marijuana businesses who are wisely drawing their attention to the California market.

Continuing to keep an eye on legalization efforts, diversified business plans, and strategic mergers will benefit any new investor hoping to ride the green wave.

Is Now the Right Time to Invest in Marijuana Stocks?

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The news on marijuana is mostly positive as of late with loosening legalities around medicinal and recreational use headlining. Canada is on the verge of a legalized recreational marijuana market for Fall of 2018 and Americans are starting to relax following Trump’s insistence the States decide internally how to legalize marijuana use. With Sessions backing down from his holy crusade against cannabis and more and more States legalizing marijuana for medicinal use, hopeful investors in marijuana stocks may find this is an ideal time to buy up marijuana stocks while the legal industry is in its infancy with hopes the market will boom with near-future profits.

How does the market for marijuana stocks really look right now?

Depending on what country is up for review, the picture of the marijuana market looks favorable or questionable. Most eyes are looking to Canada for new investment opportunities as the marijuana businesses in the country scramble to increase supply in the wake of the legalized recreational market. The expectations are high for demand.

Some of the leading Canadian cannabis companies with the greatest potential for production capacity are turning heads in the world of stocks; at the top of the list are Canopy Growth (NYSE:CGC), Aurora Cannabis (NASDAQOTH:ACBFF), and Aphria (NASDAQOTH:APHQF). While these companies largely are already on the Toronto Stock Exchange, most American cannabis companies are privately owned and relegated to the volatile penny stocks arena. The one exception to this is Canopy Growth which was recently listed on the New York Stock Exchange.

The potential for oversupply in Canada could bode well for the market and for marijuana stocks investors so long as the international market makes use of product.

The legal adult-use marijuana market is still new and it would be impossible to predict what will happen to marijuana stocks from a supply and demand perspective. Considering Canadian cannabis cultivators are crossing their fingers for overseas businesses to buy up the potential excess (numerically speaking, approximately 1+ million kilograms) over the next two years, it’s hard to say how well this will work for investors getting started with buying marijuana stocks today.

One of the unique hurdles many American marijuana stocks businesses must overcome is access to banking.

The banks are more than happy for the business; however, the legalities surrounding the issues of marijuana use and sale prohibit most financial institutions from engaging in this market.

Criminal and/or financial repercussions for allowing a checking account or offering a line of credit to a marijuana business have held the banks back from engaging with the industry. To make matters worse, the U.S. Senate Appropriations Committee recently voted against a banking amendment which would have permitted banks to do business with marijuana companies in compliance with state laws.

When assessing any company’s stock to buy or invest in, it is critical to review the company practices, management, past performance, etc. What many traditional companies on respected exchanges such as NASDAQ and NYSE do not face is limited access to banking resources. While business is viable in countries like Canada and Germany, the United States lacks a legal market on a national level to back up small, privately owned enterprises.

Among the other obstacles marijuana stocks businesses face is the federal government.

Even though the drug is “under the gun” (so to speak) with the feds, the government will still tax marijuana business’ income in states where cannabis is legal. Additionally, marijuana businesses are prohibited from taking out typical corporate income tax deductions which has the potential to result in a 90% income tax rate.

However, the legal U.S. medical marijuana market brought in $8.5 billion last year alone. That’s a lot of green for a struggling product in terms of national legality, especially considering how close this figure is to candy sales in 2016, a perfectly nationally legal product. On paper, this business has great potential – in practice, time will tell.

For the investor not adverse to taking risks, now just might be the best time to invest in cannabis stocks.

For financial daredevils who are in this race for the long-haul, there is a lot of potential in the marijuana stocks market. This isn’t a get-rich-quick scheme – there are just too many unknowns when it comes to predicting how a fully legal marijuana market would perform. There’s no way to tell if Canadian companies will be as profitable as anticipated or if the United States will back marijuana use on a more national level – both critical factors in how these companies will perform. If one has the stomach to ride it out, the potential is undeniable.

There is more than one way to take advantage of this market’s potential; aside from marijuana growers, there are suppliers and collaborators in the marijuana stocks sector to consider.

If an investor wants to dip a toe into the market, it is worth considering companies like Scotts Miracle-Gro (NYSE:SMG) – the current go-to supplier for marijuana growers and traded on a respectable exchange. Additionally, alcohol companies seeking to create cannabis-infused products may send some of the market growth to the investors. Constellation Brands (NYSE: STZ), for example, bought a 9.9% stake in the largely successful Canadian company Canopy Growth and could stand to benefit from changes in legality in the near future.

An investment in small-cap OrganiGram Holdings (NASDAQOTH:OGRMF) may also feel like a safer marijuana stock bet for new investors. Though the company adjusted to bought-deal offerings, the business’ costs are lower than most other companies in the industry and management chose to consider higher-margin products (oils over dried) a priority.

Is now the best time to invest in marijuana stocks? The answer could be, “Yes” depending on which factors, country, risk-level, future legalities, are most motivational to any individual investor.

It may be too close to call for some investors and, yet, with change in the wind, the itch to jump into the industry is understandable. Whether an investor chooses to wait it out, invest in a business collaborator, or buy up stocks from established suppliers, the answers are just around the corner for how well the industry will perform in the coming years.

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