With the increasing number of states that have embraced medical and recreational marijuana sales, it’s easy to assume that investing in cannabis stocks may be the next best step for your portfolio.
The potential for gains with the cannabis industry is vast, especially as more U.S. states move toward the legalization of medical marijuana. These legislative changes may allow for the eventual legalization of recreational marijuana in more than the current 15 states. Until then, it’s still an impressive $17 billion industry that’s headed mainstream.
Enter: Marijuana penny stocks. In its early stage, you’ll find a plethora of stocks that can be purchased at $1 per share. With plenty of risks associated with penny stocks, the cannabis industry is no exception when it comes to manipulation and fraud. However, consider the basis for the industry and the strong business fundamentals that back it, and you’ll find that this industry does have good stocks to invest in.
There are different types of cannabis stocks to explore. First, you have the growers. These will be the cultivators and distributors of the crop. Then, there are the pharmaceutical companies that make cannabinoid drugs, which are booming with products infused with cannabidiol (CBD). Lastly, the suppliers to those who grow the marijuana- ancillary products like hydroponic systems that support the growth and production of cannabis. When you consider purchasing penny stocks in the cannabis industry, you have many different businesses and business models from which to choose and evaluate.
In addition to the inherent risks of unregulated penny stocks, marijuana penny stocks also carry an additional risk for investors because of its dependence upon the surrounding political climates. Because it is still illegal on the federal level, states are responsible for how they conduct and implement their own laws surrounding marijuana as a whole. While states are continuing to move toward acceptance of the plant in different capacities, there’s still difficulty for people in the industry to raise capital for their businesses or even have bank accounts.
What does this mean for the investors? Cannabis stocks and marijuana penny stocks hold their appeal on the brink of a boom in the industry, and now is a great time to get involved and add a few of these stocks to their portfolio.
In addition to the general research that comes with mitigating risks for cannabis stocks, an investor will want to determine what kind of business in the marijuana industry in which they invest. Investing in growers may require looking at their cash flow stance and closely researching their management teams and growth strategy. Looking into companies providing ancillary products may be safer because they aren’t solely reliant upon the income from cannabis sales. Considering cannabis stock investments over the long-term will be more beneficial than looking for a quick turnaround.
Our Bill Patalon recently had a conversation with Money Morning's Director of Cannabis Investing Research, Don Yocham, about the monster rally in cannabis stocks sparked by the Democratic sweep of the White House and Congress.
He's sharing all the critical points of their chat with you, plus a winning cannabis play...
A few weeks ago, NICI’s Don Yocham named two cannabis stocks every investor should own.
They’ve already turned in at least 30% in profits, and they’re just getting started… .
Marijuana stocks are full of potential in 2021, with legalization sweeping the country... In 2021, we know at least two more states will allow the sale of legal marijuana - Mississippi (medical) and South Dakota (medical and recreational).
And in three states where it was already medically legal - New Jersey, Montana, and Arizona - anyone over the age of 21 will now be able to purchase cannabis recreationally in 2021.
By 2022, we could very well see even more laws to legalize medicinal or recreational weed as 11 of the 15 states remaining to legalize it are expected to vote on it then.
But between now and 2022, there is likely going to be explosive growth in the cannabis industry that early investors willing to take the risk can still capitalize on.
We're still so early.
So if you haven't invested yet, it's not too late to buy my best marijuana stocks for 2021...
We've said in the past here at Money Morning, that it's not a matter of if but when cannabis is fully legal across all 50 states.
And this election cycle was just another sign we're on that path.
But not every pot stock is going to benefit the same.
That's why I went digging for the companies that stand to benefit the most from these five states passing new laws.
Below are the top two marijuana to buy now.
One could even double your money over the next year...
CBD is just one of over 100 different cannabinoid compounds.
And that's only counting the ones that have already been discovered.
Each of these compounds, and all their possible combinations, represent a veritable ocean of new possibilities for medical researchers.
Cannabis stocks are going to get their biggest catalyst yet from the
presidential election in November.
This is a hot-button issue in federal, state and local elections like never
before.
We're going to show you some of the best cannabis stocks to buy for up to 171% profit potential before the election.
New York Governor Andrew Cuomo created a new stir in cannabis investors last month.
Cuomo said in May that he believes the state will legalize cannabis.
And now that the state's coronavirus number have shrunk from over 11,000 to around 600 daily cases, the governor may have room on his plate to spare.
A state like New York legalizing weed would be a huge catalyst for cannabis legalization in the United States.
And we're going to show you how to start investing in cannabis and create generational wealth today.
Canopy Growth Corp. (NYSE: CGC) is one of the most popular stocks in the marijuana industry.
The company has the largest market cap of any cannabis company in Canada.
It also has name-brand appeal through partnerships with celebrities like Seth Rogen and Drake.
But there is also plenty of competition in the cannabis industry.
And we're going to show you one of our top cannabis stocks to watch as competition begins to mount.
The National Institute for Cannabis Investors predicts the legal cannabis industry could soar as high as $300 billion over the next few years.
It was worth just $10 billion last year.
That's 2,900% growth.
And 2020 is providing many catalysts in that direction.
One of our three pot stocks to watch could soar 150% before the end of this year.
There are two gigantic investing mistakes most of you are making in 2020.
The first mistake is not buying enough stocks on the dip.
The second: not buying enough marijuana stocks on the dip.
The cannabis sector came in around $10 billion in 2019.
But it's projected to climb up to $300 billion, according to the National Institute of Cannabis Investors.
Our best marijuana stock today could pop 137% on the industry's rise.
But that's just one of several money-doubling gainers we've been excited about in the last year.
The coronavirus crash has cost state governments millions.
Oklahoma Rep. Scott Fetgatter said COVID-19 relief would net his state negative $220 million this year.
But Mr. Fetgatter may be onto a fiscal solution. His thoughts on legalizing rec. marijuana might not only benefit his state.
They are also a potential catalyst for cannabis stocks around the country.
In fact, one of our top marijuana stocks could gain 99% this year.
And that's just a start as the legal marijuana industry ascends a projected $73.6 billion peak over the next decade.
Prior to this awful coronavirus outbreak, legal marijuana sales were projected to reach $2.6 trillion by 2030.
At the end of 2018, legal marijuana revenue was just $10.8 billion.
Is that 20,000% growth still in the cards for the marijuana industry?
If you're serious about making money in the year ahead, you need to tap into the rebound of cannabis stocks in 2020.
Two years ago, cannabis stocks heated up on speculation of broad-scale legalization for medicinal and recreational marijuana across America.
Stocks have since pulled back from record-highs as investors set more reasonable expectations for the year ahead.
But cannabis stocks are about to surge again...
As sports leagues ease the prohibition of athletes using cannabis, you'll start to see more athletes talk about how CBD and cannabis-medicine have helped them improve their performances.
They'll sign on as brand ambassadors for certain companies.
Some athletes or former athletes will even start their own CBD companies.
And this will be a major catalysts for marijuana stocks...
When Joe Montana retired and launched his investment fund, he made sure to surround himself with a team of superstars.
They're out there finding deals and vetting companies while he's meeting with the founders.
They are all working toward a common goal as one.
It's just like the formidable team that's been put together at The National Institute for Cannabis Investors.
