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.
Marijuana stocks have a ton to offer investors that want to take advantage of the up and coming marijuana industry.
In fact, by 2020 the U.S. marijuana market could be worth upwards of $30 billion annually by 2020. That's growth you won't want to miss out on.
Medical marijuana stocks are crushing the broader market in 2016.
And we've found five important reasons why the marijuana market will continue to outperform.
Here's everything you need to know about where cannabis stocks are heading...
Despite Wall Street's intimidation toward them, cannabis stocks are set for big growth in 2016.
That's mainly because legal marijuana sales are set to have a banner year.
But there are three other trends that ensure marijuana stocks will post big long-term gains...
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And that's drawing the attention of many investors.
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Here are some numbers that will show you just how big this market will become by 2020...
Pot stocks could receive a big boost from a major event that's happening soon.
Check out this event and what it means for the pot industry right here...
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Investors rarely consider pot stocks when building their portfolios. But that will change.
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Here's what investors need to know about the marijuana industry's future potential...
GWPH stock surged some 12% Tuesday on positive results from one of its exploratory cannabinoid products.
GWPH's rich pipeline of cannabinoid candidates make this one "hot pot" stock to watch.
Even after returning an 86% profit in a little over a year, this top pot stock isn’t done.
Thanks to promising pipeline therapies and expanding medicinal marijuana use, shares have more room to run.
Keep reading for the name of the best pot stock to buy now…
The growing, nationwide political climate is shifting in favor of marijuana legalization.
But finding the best pot stocks to invest in right now to capitalize on what promises to be an explosive growth in the years to come is proving to be a conundrum.
And that's for one simple reason...
It can be difficult to identify the best pot penny stocks at the moment.
The U.S. Securities and Exchange Commission's trading halts on a number of pot penny stocks illustrate this.
Here's how to separate the good from the bad...
