Attorney General Jeff Sessions doesn't hide his opposition to marijuana, but the reality is the legal cannabis movement is too big for Sessions to stop. And that's creating a once-in-a-lifetime profit opportunity for you…
Today, we're looking at the three top marijuana stocks under $5 to watch that are set for huge profits no matter what Sessions wants.
You see, as attorney general, Sessions has focused on preventing large, established "vice" companies, such as Philip Morris International Inc. (NYSE: PM), from entering the lucrative cannabis industry.
This has had the unintended effect of protecting small marijuana companies that trade on over-the-counter exchanges from aggressive corporate competition.
With federal red tape tying up larger corporations, small marijuana companies are thriving – providing enthusiastic investors with an opportunity to access tremendous profits with very little initial investment.
According to BDS Analytics, the recreational marijuana industry will reach a valuation of $577 million this year in California alone.
While the stocks we'll show you are exciting, retail investors should be aware of the inherent risks of investing in these companies. As small startups, they lack the kind of strong financials that often define traditional, attractive investments. We aren't ready to recommend these companies yet, but we want to make sure Money Morning readers know about their potential.
Here are the three top marijuana stocks under $5 that are set to provide tremendous gains in this emerging industry…
Top Marijuana Stocks Under $5 to Watch, No. 3: InMed Pharmaceuticals Inc.
InMed Pharmaceuticals Inc. (OTCMKTS: IMLFF) is a Canada-based, pre-clinical-stage biopharmaceutical firm that focuses on researching and developing unique cannabis-based therapies.
The company's main product is a topical cannabinoid product called INM-750, which has been developed to treat epidermolysis bullosa (EB). This is a genetic skin condition that causes blistering from just minor friction.
Pot Stock Profits: A historic event is unfolding in California's marijuana markets, and the wealth expected to flow into this industry is record-breaking. Learn how to cash in here…
InMed is developing a topical drug called INM-085, which is a treatment for glaucoma, as well as drugs for other diseases including cancer, arthritis, and dermatological issues.
As a Canadian company, InMed is well positioned to take advantage of Canada's full legalization of recreational cannabis, which is poised to come into effect this summer.
There is also a global market for medical marijuana products that InMed is set to take advantage of. According to ArcView Market Research, by 2027, international spending on legalized pot is expected to reach $57 billion, nearly $19 billion of which comes from medical marijuana. In comparison, the industry's total output was $12 billion in 2016.
You can currently pick up shares of IMLFF for $1.18.
Top Marijuana Stocks Under $5 to Watch, No. 2: GB Sciences Inc.
GB Sciences Inc. (OTCMKTS: GBLX) is a Las-Vegas-based company that focuses on selling equipment used for growing marijuana indoors. It also has plans to produce marijuana-based drugs.
In February, GBLX received a license to begin full production of its cannabis oil in its Las Vegas facility. It also signed an agreement with the Colorado Hemp Project to begin contract farming of new strains, which will provide key ingredients for proprietary CBD formulations.
In March, the company announced that it would be sponsoring an upcoming symposium called "Innovation in Medical Cannabis Therapies." Shares of GBLX currently trade for $0.52.
But GB Sciences isn't the top pot stock on our list. This company has even greater potential…
While these two companies work directly in the marijuana industry, our favorite stock is set to benefit from the development of a larger industry infrastructure.
It's a pure "pick-and-shovel" play – a firm that serves the pot industry without having a direct hand in growing marijuana or operating dispensaries.
Top Marijuana Stocks Under $5, No. 1: Surna Inc.
Surna Inc. (OTCMKTS: SRNA) sells equipment used to grow cannabis. Its products include irrigation systems, lights, climate control systems, reflectors, and custom indoor growing systems.
Surna's business model makes the company a prime target for acquisition by a larger entity, much like the large supply companies that have been buying up hydroponics equipment firms over the past several years.
SRNA shares remain incredibly affordable, with a current share price of just $0.19. At the moment, this is a marijuana stock to watch, not to buy.
However, you can generate tremendous gains in the marijuana industry by getting in on the ground floor of the biggest state to legalize marijuana so far.
Make Millions Thanks to California's Cannabis Explosion
$20.2 billion… that's the amount of money expected to pour into California's cannabis market in just the first year the state goes fully legal.
Mark my words: The savvy investors who know how to get in on the ground floor could see a small stake turn into a million-dollar windfall.
We've narrowed down the pool to three tiny California cannabis companies expected to deliver once-in-a-lifetime fortunes. But once these small stocks go from $1 to $10, to $20, or more… you may never see a chance like this again.