3 Surprising Marijuana Stocks to Watch in 2017

sketched-weed-leafThere's more to the marijuana industry than just growing and selling cannabis. That's why we're providing our readers with three surprising marijuana stocks to watch in 2017.

You see, some of the top marijuana stocks on the market come from a variety of subsectors - growers, edibles, dispensaries, and more.

And as a service to Money Morning readers, we're now making available a 90-page cannabis investing guide called The Roadmap to Marijuana Millions.

We'll have more on that in just a bit.

But first, we wanted to provide our readers with a list of three surprising marijuana stocks to watch heading into 2017...

Marijuana Stocks to Watch in 2017 No. 3: Zoned Properties Inc.

As more states legalize marijuana, the need for marijuana real estate will increase.

To meet this growing demand, Zoned Properties Inc. (OTCMKTS: ZDPY) develops and leases properties for emerging industries such as legalized marijuana. It also provides property management services such as:

  • Architectural design
  • Landscaping
  • General up-keep
  • Security systems

ZDPY shareholders also just received good news on Dec. 1, when Zoned Properties announced it received unanimous approval to develop the first parcel of land in Colorado for its Marijuana Business Park.

Special Report: Get Rich from Legal Weed. Soon, the DEA Can't Stop You.

According to Yahoo! Finance, Zoned Properties will expand its one-and-a-half-acre parcel up to 35 acres over the next few years.

It's true ZDPY is a penny stock, and penny stocks are risky. It opened this morning at $2.11 per share, and the ZDPY stock price is down 88% over the last 12 months.

But as the marijuana industry becomes more legitimate through legislation, this is a marijuana stock to watch in 2017.

You'll be familiar with these next two companies, but most investors are surprised by their involvement in the marijuana industry...

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Marijuana Stocks to Watch in 2017 No. 2: Microsoft Corp.

Microsoft Corp. (Nasdaq: MSFT) is one of the best-known tech companies in the world. Over 400 million devices run Windows 10, and Microsoft Office has been downloaded 340 million times on iPhones, iPads, and Android devices.

But what investors may not know is Microsoft is investing in the marijuana industry...

In June 2016, KIND Financial partnered with Microsoft to run its software through Microsoft's cloud. KIND uses technology to allow safe and secure transactions in the marijuana industry. KIND also uses its technology to help companies stay compliant.

Microsoft already expects to generate $20 billion in commercial cloud revenue by 2018.

And with eight states legalizing recreational marijuana, Microsoft's cloud software could become the go-to software in the marijuana industry.

marijuana stocks to watch in 2017

FactSet has a one-year price target of $64.35 for the MSFT stock price.

From today's opening price of $61.68, that's a potential profit of 4%.

Microsoft shareholders also receive a nice dividend payment of $0.39, which is a yield of 2.52%.

The next surprising marijuana stock has been in business since 1886. But it just started investing in the cannabis industry...

Marijuana Stocks to Watch in 2017 No. 1: Scotts Miracle-Gro Co.

Scotts Miracle-Gro Co. (NYSE: SMG) is known for its lawn-care products.

When retailers like Home Depot Inc. (NYSE: HD) and Wal-Mart Stores Inc. (NYSE: WMT) were rapidly expanding between 2001 and 2009, Scotts' revenue climbed 80%. However, the financial crisis forced retailers to scale back adding new locations.

When retailers stopped building new locations and shut down stores, this left Scotts' revenue stagnant.

In order to find new customers, CEO Jim Hagedorn turned to the marijuana industry.

In 2015, Hagedorn purchased two companies that specialize in soil and fertilizer for cannabis growers. In July 2016, he also invested a 75% stake in Gavita International, a hydroponics equipment company.

According to Bloomberg, Scotts' hydroponics business now generates roughly $250 million annually. That's less than 10% of its total revenue from October 2015 to October 2016, but sales will climb as more states legalize marijuana.

As more states legalize marijuana, Robinson believes SMG stock could climb 30% by next November. Based on his Nov. 10 recommendation, that means SMG could trade for $109 per share.

EDITOR'S NOTE: As a service to Money Morning readers, we're now making available a 90-page cannabis investing guide called The Roadmap to Marijuana Millions. This "bible of weed investing" reveals the world's top marijuana stocks every serious investor should consider right now. Normally valued at $499, it can be yours absolutely free. To learn how to get your free copy, click here. This offer is only available to the first 500 people who respond today. So please go here now to reserve your copy. 

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