The legal marijuana industry is growing by leaps and bounds. This is due to many factors, including changing public opinions regarding pot consumption, changes in laws and regulations regarding pot possession and consumption, and even medical and scientific developments.
One reason to invest in pot stocks: the medical marijuana industry continues to expand.
Several biotech companies in the United States have begun developing cannabis medical applications. This research and development has resulted in several start-up companies rushing to join in, and potentially cash in on, the marijuana bandwagon.
However, a potential issue that faces both investors and entrepreneurs is that a majority of these start-up companies may fail because large biotech companies have already cornered a large part of the market.
What is a savvy investor interested in weed stocks to do?
It is simple: Consider investing in the pot stocks discussed in this article. The following companies are currently positioning themselves to be leaders in the legal marijuana industry.
Consider investing in pot stocks from AbbVie, Inc.
This pharmaceutical company places an emphasis on research and innovation.
AbbVie, Inc., promises to be at the front of the legal marijuana industry; the company has invested in advanced science with the intention of identifying the best solutions that would ensure the treatment of the world’s most challenging diseases–and assuming that at least some of these diseases will be helped by cannabis makes AbbVie, Inc. a promising mmj stock.
AbbVie, Inc., has experienced increased revenue over the past few years, in part due to its production of useful drugs, such as Marinol, derived from marijuana. AbbVie’s corporate philosophy of constant research and development of therapeutic drugs has resulted in it being ranked eighth among top large biotech companies, and with an impressive market cap of $155.4 billion.
Another company whose MMJ stocks may prove to be a worthy investment is GW Pharmaceuticals.
Like AbbVie, Inc., GW Pharmaceuticals has established itself as a leader in the cannaboid research industry. In fact, GW Pharmaceuticals is arguably the world’s leading expert in plant derived cannaboid therapeutics.
GW Pharmaceuticals achieved its excellent reputation through its push to create innovative development processes and a massive intellectual property portfolio. Currently, GW Pharmaceuticals’ leading product is Epidiolex, a cannabidiol that is formulated to combat severe drug resistant epilepsy syndromes. However, Epidiolex is not the only successful product to be produced by the company. GW Pharmaceuticals has also produced Savitex, a cannabis-derived treatment for spasticity associated with multiple sclerosis. For investors interested in both weed stocks and medical research that seems likely to positively impact individuals with chronic or life-altering illnesses, GW Pharmaceuticals seems like an excellent investment choice.
One company you might not associate with the weed stock label is Philip Morris.
Nevertheless, Philip Morris International has begun to position itself as a significant distributor of cannabis-related products. Seeing a potential market if or when marijuana becomes widely legalized, Philip Morris International invested in Syqe, an Israeli company that has patented a one-of-a-kind marijuana inhaler. This reflects Philip Morris International’s general business model focused on inhalable drugs. If Philip Morris International were to replace the nicotine liquid found in its e-cigarette with THC liquid, sales would explode. Philip Morris International seems like a good bet for individuals interested in cannabis stocks.
Wise investors should not ignore marijuana penny stocks as opportunities to diversify their portfolios with weed stocks.
Trading penny stocks is an inherently riskier investment than trading listed stocks on the NASDAQ or NYSE. These penny stocks do not have the same rules with respect to reporting financials and business initiatives, not to mention governance by the SEC which makes them far less transparent and subject to manipulation. However, if you are willing and able to tolerate these potential risks, marijuana penny stocks might be a good investment strategy for you.
One such weed stock of the penny stock variety not to be discounted is Terra Tech Corp.
This company, currently based in Irvine, California, is focused on cannabis agriculture and cultivation for medical marijuana. Terra Tech Corp employs hydroponic growing techniques as well as their own proprietary technology for growing what is reportedly a very good product.
Another penny weed stock to consider is American Green, based in Nipton, California. American Green is reportedly attempting to turn its Mojave Desert-adjacent facility into an off-the-grid “pot paradise.” This company specializes in the cultivation and distribution of both medical and recreational marijuana, meaning that it could be a potentially strong cannabis stock in which to invest.
One might also consider investing in Canadian marijuana stocks.
Canada is scheduled to legalize recreational marijuana use in July 2018. Additionally, medical marijuana is already legal in the country. For individuals interested in investing in MMJ stocks, the Canadian market might be a great place to explore.
Two of the top-rated Canadian cannabis stocks to watch Canada are Canopy Growth and Aphria. Both companies trade on the Toronto Stock Exchange. Furthermore, both companies are producing strong revenue growth.
The Canadian cannabis stocks have fewer risks than American stocks simply because the United States has not yet uniformly legalized pot use. However, as public opinion about weed grows more mellow, it seems likely that legalization might be just around the bend. A savvy investor will get in on these weed stocks before the market explodes and any chance of snapping up great stocks at a good price goes up in smoke.
(For more on investing MMJ stocks, read Tips for Investing in American Cannabis Stocks in 2018.)