There is a boom in the Canadian cannabis stocks market right now which is not currently replicated in the American market.
In 2017, Canadian cannabis stocks gained an estimated 250% as a group; their counterparts in the United States gained only 19%.
These numbers indicate the strong marijuana stock market in Canada. This makes perfect sense seeing as how medical marijuana is legal in Canada, and, starting July 2018, recreational use of weed will also be legal.
The legal status of marijuana in the United States is less clear, especially after Attorney General Jeff Sessions announced that he wants to take action to further deter efforts to legalize weed on American soil. Any actions restricting states’ rights with respect to what citizens are allowed to legally consume can greatly impact marijuana sales and the cannabis stock market, impacting even mmj stocks that feature companies who serve more medical, rather than recreational, niches of the legal weed market.
Nonetheless, U.S. weed stocks are not far behind their Canadian counterparts, despite potential political setback.
Americans are becoming more accepting of marijuana usage, despite the actions that Attorney General Sessions might want to take against the industry. Recreational weed is now legal in eight American states and Washington, D.C.
Total U.S. legal marijuana sales in 2017 were estimated to be at about $7 billion. Where there is smoke, there is fire–and this spark of stock market success for pot stocks indicates the American marijuana stock market might be a great place for you to invest your green.
In this article, we will discuss the reasons to expect continued gains in pot stocks into 2018. To better assess and understand this market, we need to discuss growers/distributors, retail, and infrastructure, and stock recommendations with highlights leading individual companies in each of these areas.
In the United States, the Brightfield Group, a cannabis stocks market research firm, has estimated legal sales in the U.S. to be $7 billion. The Canadian market is estimated to be $600 million, with a $16 billion market cap. This massive discrepancy gives us insight into the potential for weed stocks to grow in the U.S.
In the American pot stocks market, there are three specific companies in which investors are expressing interest.
The first is Medical Marijuana Corp., an investment company in the medical marijuana and industrial hemp markets. Medical Marijuana Corp. has products that include patented cannabinoid products, seed and stalk, and extracts. The company has 85 employees. Its market cap is $480 billion, and its revenue estimate for 2018 is $23.6 million, giving it a price-to-sales ratio of 20:3.
Another company to watch is Cannabis Science, Inc. Like Medical Marijuana Corp., Cannabis Science, Inc. sells marijuana-based pharmaceutical and recreational products. Unlike Medical Marijuana Corp., Cannabis Science, Inc. has licensed dispensaries, including a handful in Los Angeles.
Terra Tech Corp. manufactures hydroponic equipment, which allows farmers to grow plants in liquid rather than soil. Terra Tech Corp sells its products to Fortune 500 companies as well as to horticulture farmers and greenhouses. Terra Tech Corp. has 175 employees. Its market cap is $300 billion and its 2018 revenue estimate for next year is a respectable $40.4 million, giving it a price-to-sales ratio of 7:3.
Medical Marijuana Corp., Cannabis Science, Inc., and Terra Tech Corp., are relatively small companies leading the way for investors in pot stocks.
As smaller companies, they can yield volatile stocks, fluctuating wildly within even a single day. However, as public support for legal recreational and medical marijuana grows in the United States, despite some politicians’ ardent arguments against it, the future of legal weed continues to look bright.
Not to mention, the best time to invest is just as a promising industry is taking off.
(To learn more about promising MMJ stock options, read Weed Stocks Projected to Do Well in 2018.)