Are you planning to invest in cannabis stocks? With the legalization of marijuana products and the numbers of evidence in favor of this herb, the stocks may continue to rise by a significant level.
Predictions reveal that the US marijuana market may grow up to $22 billion by the end of the year 2022. And the annual global market for marijuana could present the estimated worth of $150 billion or even more in the next 10-15 years.
Although the hot stocks in the cannabis industry may appear too hot to handle, it is possible for the new age investors to learn the basics of investment and make an analysis between right and wrong.
Many companies at present have opened their shares to the common public so that they can make easy and secure investments, and it will ultimately help to raise a considerable amount for further growth of the brand.
Those who are new to the cannabis stock market are advised to go through this beginner’s guide on investing in top cannabis stocks 2019.
On the one hand, it will teach you about the basics of cannabis or marijuana industry, and at the same time, it will help you to choose the best cannabis stocks to invest in. So, keep reading the exciting details below:
Why Are Cannabis Stocks a Good Investment?
Whether you watch the news or go online to scroll over your social media timeline, cannabis is everywhere. This global change is responsible for the exponential growth of the cannabis stock market. However, beginners might be still interested in evaluating reasons to invest in cannabis stocks. Well, few of them are listed below:
The cannabis industry is making its mark:
A few years ago, buyers used to find secret ways to get their marijuana edibles, but today, as the cannabis industry is going mainstream, people are talking openly about it. With the improvement in legislation and reforms, the medical, as well as recreational cannabis market, is going all-time high. Companies are also able to trade on the international scale while establishing a new trend globally. By observing this rapid growth, experts say that it is the right time to invest in the cannabis industry.
Early investors to long players:
This is just a beginning because the cannabis stock market has a long way to go. And as per the prevailing trend of the stock market, early investors are always the most profitable people in the industry. The investment you make today will ensure high returns in the future. Studies reveal that it is time to play the high-risk, high-reward game, and if you are strategic enough about your investments, it is possible to set-up a great financial model.
Marijuana Regulation: Facts
Four years ago, citizens at Washington, D.C. passed the Initiative 71, and as per this act, all citizens above 21 years of age group are allowed to possess around 2 pounds of marijuana. This law also enables district residents to grow marijuana in their private property. With time, the capital city also set up its potential market of “Ganjapreneurs,” and they developed their ecosystem for the legal weed market.
If we talk about the status of medical marijuana in the United States, it is presently controlled at the state level. The US government officials, political leaders, and health care service providers have their individual opinions about the pros and cons of medical marijuana.
After Washington, D.C., Canada has marked its position on the second level for the legalization of marijuana. Stats reveal that just within the year 2018, eight cannabis companies got listed to the Toronto Stock Exchange and Deloitte projects, and they are planning to invest around $5.4 billion on the variety of cannabis products in the year 2019.
With the new legislation, rules, and regulations, people are now able to get medical marijuana with ease. The latest products can be easily used for the treatment of a wide range of health issues such as severe nausea, dramatic weight loss, severe pain, seizures, muscle spasms, HIV/AIDS, Glaucoma, and Cancer as well.
Where are Cannabis Stocks Listed?
NASDAQ is well known as the first most electronic exchange in the world, and it has a close relationship with biotechnology and technology as well. Most of the cannabis stocks are listed on this exchange. However, the other popular platform for such listings is NYSE.
You can easily find a long list of companies that are listed on NASDAQ and NYSE, along with the short descriptions of their involvement in the stock market.
Which are the best 3 Cannabis Stocks to Invest in 2019?
Among the wide range of options for investing in the cannabis stock market, here, we have listed the top three giants to ease your investment decisions.
Canopy Growth (CGC):
Same as most other marijuana stocks, the Canopy Growth (NYSE: CGC) also dropped by almost 26% in October in the year 2018. However, the month of November led to a sharp burst while building the momentum in the market. Although the rally soon lost its traction and CGC again lost by double-digits, it marked a massive growth in the year 2019 with an unusual climbing of 65%.
The most advantageous thing to know about CGC is its ability to grow steadily. It is not a last-minute panic game with the short-term stock investments, instead of investing in CGC stocks, one needs to start with the broader fundamentals and think of long-term gains.
Note that CGC is supported by the Constellation Brand, the largest alcoholic-beverage developers. Investors should not ignore the fact that big money is stepping into the CGC stock sector, and it is going to return more in the near future.
KushCo Holdings (KSHB):
Here is another leading supplier in the US cannabis industry that offers a variety of products such as vaporizer cartridges, tubes, bottles, and many more. This brand is designed to meet the rising demands of cannabis dispensaries and growers, as well.
It is believed that this company will soon reach sustainable profitability levels while capitalizing its growth rate in the US marijuana market and many other countries as well. To ensure higher growth rates, KushCo (NASDQQOTH: KSHB) is currently making efforts to target the European and Canadian markets.
Furthermore, the legalization of hemp in the US will also provide it a great place in the market. With all such positive factors, it is possible to make high profits by investing in their stocks.
Origin House (ORHOF):
It is a Canada based brand. However, they are primarily operating in the US market. Earlier, they started with a royalty streaming centered business model that used to provide valuable financing to the businesses while exchanging some percentage of future profits. However, at present, they are widely known as the most significant cannabis product distributors in the world; they are also selling many of their brands as well.
As their prime focus is on the rising demands of California, the most significant legal marijuana market offers it great opportunities for growth. They are serving almost 70% dispensaries in the area. The company is presently also making efforts to grow in other sectors as well. They recently acquired a major Canadian Vape retailer, 180 Smoke, to ensure a new path for the business expansion. Indeed, investing in their stocks could lead to huge profits in the near future.
Where to Buy Marijuana Stocks?
Many beginners keep on asking this question where and how they can invest in marijuana stocks. Well, you can start with the publicly-traded cannabis stocks, but before that, it is essential to collect all crucial details about factors associated with investments.
First of all, it is essential to collect details about all types of marijuana products and know their potential in the market. Then you can move ahead to the different types of stocks that can ensure high returns for investments. Three of the most popular ones are already listed above. Collect essential knowledge about political and legal issues involved in the industry and then study demand and supply related imbalances.
Once you have collected all these details, it is time to look for the marijuana stocks and develop a reliable strategy for the investment. Go to the popular listings and pick the stocks that you wish to trade-in. Your responsibility does not end with the investment. Instead, it is necessary to monitor the industry dynamics after investment so that you can make the right decisions at the right time.
So, you have gone through all the essential facts and details about the cannabis stock market. Well, after collecting these facts, it is probably the right time to invest in marijuana stock to ensure long term profits.
It is well proven that investing is the most productive way of making the best use of your wealth, and when people do it strategically, they are more likely to earn big profits. Hence, it is time to make a smart decision for the investment in the cannabis stock market so that you can increase your wealth by a significant level.
Recent predictions and trends reveal that the marijuana stock market has a long way to go, and the early investors can make the best out of it.