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Americans overwhelmingly support marijuana legalization. A Gallup poll from October revealed 60% of U.S. citizens were in favor of cannabis legalization.
And because of growing legalization efforts, marijuana sales are booming, reaching $6.7 billion in 2016 in North America. That's why we are sharing with Money Morning readers three marijuana stocks to watch right now.
But before we share the three pot stocks on our watch list, we wanted to make sure our readers are aware that marijuana stocks are speculative investments.
The majority of marijuana stocks trade on over-the-counter markets, which aren't regulated like the Nasdaq or New York Stock Exchange (NYSE). Also, most cannabis stocks are penny stocks, and penny stocks are known for being notoriously volatile.
Cannabis is also illegal under U.S. federal law, and there is no way of knowing how the Trump administration will handle marijuana regulation.
However, we've also included a company to watch that operates in a legal business and doesn't directly sell marijuana. It makes for one of the best investments in the cannabis industry for risk-averse investors.
And the first marijuana stock on our watch list is Grow Condos Inc. (OTCMKTS: GRWC). Incorporated in 1999, Grow Condos provides turnkey grow facilities for cannabis growers.
The company also owns, develops, and manages industrial properties.
And GRWC made it on our watch list because of a recent transaction. On March 13, Grow Condos announced it acquired Lake Selmac Resort & RV Park in Oregon in a cash, stock, and debt deal. Full financing was not disclosed.
In its March 13 press release, Grow Condos said it was able to fill a niche need because of current marijuana laws. You see, it's illegal to recreationally smoke cannabis in national and state parks.
But with the Lake Selmac Resort & RV Park, Grow Condos can "offer the freedom of experiencing Oregon's strikingly beautiful landscape while also allowing its visitors to enjoy Oregon's 420 friendly privileges."
Having a new source of revenue should help the GRWC stock price climb.
But that's not the only marijuana stock on our watch list. We have two more, and the next marijuana stock has already climbed over 126% so far in 2017.
And it could keep climbing through its diversified portfolio in the marijuana industry...
Two More Marijuana Stocks to Watch in 2017
Mountain High Acquisitions Corp. (OTCMKTS: MYHI) is an Arizona-based company that acquires and leases commercial properties to marijuana businesses.
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Mountain High also diversifies its holdings with other purchases. For example, it now owns GreenLife BotaniX, which is a CBD hemp oil company. And because GreenLife's products are derived from concentrated hemp extracts, the company is allowed to sell them directly on its website without the restrictions placed on most marijuana products.
The company also owns a company out of Kentucky called "Freedom Seed and Feed," which specializes in industrial hemp cultivation and processing.
In June 2016, the company announced it was creating a strategic think-tank to assist in new business and bridge financing plans.
So far in 2017, the MYHI stock price has climbed 126.25%.
Finally, the third marijuana stock on our watch list is one of the safest ways to play the cannabis industry.
Scotts Miracle-Gro Co. (NYSE: SMG) is a household name. Major products include household names like Roundup, Turf Builder, Miracle-Gro, and EverGreen.
But Scotts Miracle-Gro is also in the marijuana industry...
CEO Jim Hagedorn has invested millions in marijuana-based acquisitions over the last several years. Scotts purchased California's General Hydroponics in 2015 for $130 million.
In August 2016, Scotts signed a $40 billion deal to buy Botanicare, a plant nutrient and hydroponics products provider.
Over the last 12 months, the SMG stock price has climbed over 31%. Scotts also offers a dividend of $0.50 per share, which is a yield of 2.12%.
Pot Stocks Creating Historic Cash Windfalls: The $6.7 billion legal marijuana market is estimated to top $35 billion by 2020. And a few dozen tiny stocks are set to deliver potentially once-in-a-lifetime windfalls. As a service to Money Morning readers, we're now making available our 89-page cannabis investing guide, The Roadmap to Marijuana Millions. This "bible of weed investing" features the absolute top 30 pot stocks in edibles, dispensaries, biotech, and more - all of which could make you a fortune. Click here to reserve your copy now!