In 2016, legal North American marijuana sales reached $6.7 billion, giving investors good reason to look closely at marijuana stocks. Because pot stocks are the best way to profit from the marijuana industry's growth, we want to show you how to invest in marijuana stocks with four investing strategies...
These four marijuana investing strategies will show you how to hone in on some of the most profitable areas of the marijuana industry. And we'll even show you the marijuana stocks to watch as part of these investing strategies.
However, we aren't recommending these marijuana stocks. Rather, these are pot stocks to watch as the United States and Canada continue to legalize marijuana.
Investing in Marijuana Stocks, Strategy No. 1
Marijuana companies need land to cultivate their crops, store fronts to use as dispensaries, and office space for their operations. Locating real estate for a marijuana operation can be a challenge due to regulations and the stigma associated with the industry.
That's why real estate companies specializing in properties for marijuana growers and storefronts can charge a premium for rental space.
According to Bloomberg, marijuana companies in Oregon are paying $12 to $18 per square foot for retail space. In comparison, other businesses in the state pay an average of $5 per square foot to rent similarly sized spaces.
Zoned Properties owns a 50-acre property in northern Arizona; 13 of those acres under development and have been leased thus far. The property includes over 20,000 square feet of greenhouse cultivation facilities.
The company also owns a commercial property located in what will be one of Arizona's first medical marijuana business parks.
According to its website, Zoned Properties has $9.1 million in assets and a market cap of $15.24 million.
Over the last 52 weeks, the ZDPY stock price has had volatile price swings, trading between $0.50 and $3.88 per share.
From yesterday's (Aug. 8) closing price of $0.88, the ZDPY stock price has climbed 76% from its 52-week low.
Which States Will Legalize Marijuana Next?
Aside from real estate, we have three other investing strategies for the cannabis industry and the pot stocks to go with them. In fact, one of the stocks we're about to mention could climb 23% in the next 12 months.