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.
If you're looking to strike it rich with pot stocks, we may have some bad news for you.
Unless you are an angel investor, friends and family of a promising startup, or a lucky pump-and-dumper, it's next to impossible to be a successful pot stock investor.
But there are a few things you can do now in an investing environment unfriendly to pot stocks...
The number of publicly traded pot stocks is growing, along with medicinal uses for marijuana.
But are there any good marijuana stocks to invest in? Most pot stocks are ailing year to date.
GrowLife stock is a perfect case study in the perilous world of pot penny stock investing.
Riding the sudden wave of excitement surrounding marijuana legalization in Washington and Colorado, investors began piling into pot stocks with reckless abandon, hoping they could get in on the ground floor of a soon-to-be burgeoning marijuana industry.
But the profits have dried up, and the story of GrowLife stock shows us why...
GW Pharmaceuticals PLC (Nasdaq: GWPH) stock is up a whopping 70.36% since 2015's start. And the stock still has legs to take shares higher.
GWPH is a UK-based biopharmaceutical company. It is devoted to the development and commercialization of cannabinoid prescription medicines.
Here's why there's still room for this pot stock to run...
Criminals have taken full advantage of the burgeoning marijuana industry - which grew from $1.5 billion in 2013 to $2.7 billion in 2014.
Investors in marijuana penny stocks lost a whopping $23.3 billion in 2014.
The U.S. marijuana industry is booming. Medical marijuana is now legal in 23 states and the District of Columbia. Recreational use is legalized in four states, with others eyeing legislation. Research firm GreenWave Advisors estimates the U.S. market could be worth $35 billion by 2020 if it is legalized federally.
But that industry growth has come with a dangerous trend: Pot stocks are scamming investors by trying to pass themselves off as the next hot marijuana startup.
Public sentiment is shifting toward recreational marijuana use in the U.S., and that's a good sign for pot stocks - and investors who get in ahead of the boom...
But, it's also benefiting Peyton Manning...?
Here’s the story (plus how to make money)...
Four new pot stocks to watch have just starting trading, all hailing from our neighbor to the North.
That's because a recent policy change in Canada has legitimized the cannabis business - a market that's expected to generate $3.4 billion a year in taxable sales over the next decade, according to government estimates.
June was the best-selling month ever for recreational marijuana in Colorado, bringing in a whopping $24.7 million in total sales according to state tax collections reported on August 8.
This record-breaking number means one thing: the cannabis industry is booming, and pot stocks are here to stay.
Welcome to the latest category of "sin stocks."
And you may be surprised at the best way to play it...
GWPH Stock Update: GW Pharmaceuticals plc (Nasdaq: GWPH) stock once again hit our "hot stocks" list Monday when shares surged some 15% intraday to a 52-week high of $109.56.
Here’s why this leader among marijuana stocks has soared more than 1,100% in the past year.
The recent boom in pot penny stocks almost seems too good to be true - and according to the Securities & Exchange Commission, it might very well be.
In the past few weeks, the SEC has been investigating several pot stocks-eight of which have now been temporarily suspended. According to the SEC, the suspended marijuana stocks were in violation of serious regulations, including instances of "manipulative transactions" and "unlawful distribution of securities."
Here’s where that leaves the state of pot penny stocks today.
GreenGro Technologies Inc. (OTC: GRNH) is up 1,210% (after having risen as much as 2,100%), Cannibis Science Inc. (OTC: CBIS) is up 183%, and Hemp Inc. (OTC: HEMP) is up 359%.
Hemp Chief Executive Officer Bruce Perlowin told Bloomberg News investors in pot penny stocks are looking for "the next Microsoft."
"The demand for marijuana is insatiable," said Perlowin. "You have a feeding frenzy for the birth of a new industry."
This is the kind of growth opportunity that comes along only once in a generation...
Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Cavuto" on Friday evening to discuss the top stocks to watch in the weeks ahead.
Our stocks to watch list for Jan. 2014 focuses on Apple (AAPL), Blackberry (BBRY), Sears (SHLD) – and marijuana.
So much for the war on drugs. For the first time ever, a majority of Americans now support legalizing marijuana.
According a new report from the Cato Institute, pot legalization could inject $20 billion a year into the U.S. economy due to the tax revenue generated and savings in law enforcement costs.
So how big is the market for market for marijuana?
