Are you the type of individual who loves investing in the stock market? If the answer is yes, there is a good chance that you’ve been compelled to buy marijuana stocks at some point. These stocks offer a wealth of perks and they can definitely provide you with a good opportunity to make some money. Within this guide, you’re going to learn all about marijuana stocks.
How The Stock Market Works
Before delving too deep into marijuana stocks, you should take the time to learn about the stock market. Marijuana stocks depend heavily on the overall performance of the stock market. Many countries have their very own stock markets. In the United States, there are several exchanges.
You can buy stocks on the NASDAQ or the NYSE. Both have their own unique sets of stocks that you can choose from. When you buy a stock, you actually gain some ownership of the company. You will usually gain voting rights and you can sell the stock whenever you wish.
Once you’ve bought the stock, you’re going to notice that its price is going to increase and decrease randomly. This is completely normal. There are numerous factors that can impact the price. It could be news or the company might have just reported earnings.
If you play your cards right, you’ll be able to buy when the price is low and sell when it is high. That will enable you to make a little bit of money on your investment. While there are risks involved with the stock market, there is definitely money to be made too.
The Basics Of Marijuana Stocks
Now, you should delve a little deeper into the basics of marijuana stocks. Marijuana stocks are stocks that are directly related to the marijuana industry in one way or another. It could be a stock for a company that cultivates marijuana. The possibilities are really endless.
At this point, the players in the marijuana industry are few and far in between. That is changing very rapidly. New players are getting involved regularly. Either way, you should know that marijuana stocks belong to marijuana companies. These stocks offer benefits that cannot be found elsewhere.
Since marijuana is gaining acceptance across the world, these stocks are booming. When marijuana is legalized in a new state or country, the stock price is most likely going to climb higher. There is plenty of potential for these stocks. This is why they’re gaining in popularity and why they’re a bit hit with investors of all types.
Should You Buy Marijuana Stocks?
Would it be a good idea to invest in marijuana stocks? These stocks have gained a lot of attention during the past few months or so and it is very easy to see why. There are plenty of perks associated with these stocks and the risks are pretty slim.
For starters, it is important to look at the public opinion of marijuana. More and more people are agreeing that marijuana is harmless and potentially beneficial in many ways. At the same time, federal opinion has changed. A lot of states in America have decided to legalize marijuana. Canada and other countries have done the same.
When this happens, cannabis is going to become more accessible to people all around the world. This is also going to increase the value of the industry as a whole. Buying marijuana stocks at this point could be like buying Amazon stock many years ago. The potential is immense and there is little to nothing to lose. Just remember that not all cannabis companies are equal.
First and foremost, you should take a look at Canopy Growth. This Canadian company was the first Canadian marijuana company to be listed on the New York Stock Exchange. It entered the market in May. This made the company the biggest publicly traded marijuana company in the world.
So, what do they do? Well, the company primarily produces and markets medical and recreational marijuana. They have several brands with Tweed being one of their most popular. The company has already managed to generate nearly $60 million in revenue.
The company has gained attention from investors and corporations alike. After all, Constellation Brands purchased nearly 10% stake in the company in October of 2017. Anyone who is interested in getting involved in marijuana investing should definitely take a long, hard look at Canopy Growth.
Aurora Cannabis is another Canadian pot company. The company grew much bigger in March when it acquired MedReleaf in an all stock deal. The deal was referred to as the largest marijuana deal the world had ever seen.
Together, the two entities will be able to produce more than 570,000 kilograms of cannabis each and every year. They will operate nine facilities in Canada with two operating in Denmark. The company’s stock is currently traded on the TSX exchange in Canada. United States investors will need to buy the stock from the OTC market. Despite some risk with OTC stocks, this one is still well worth checking out.
Cronos Group is another marijuana related stock that is well worth the time and energy. This Toronto-based company actually cultivates medical marijuana. While they primarily operate out of Canada, they actually serve the international market.
For instance, the company ships marijuana to Germany and they are currently in the process of building a new facility in Israel. They’ve also taken steps to expand to Australia. At this point in time, the company does not have a presence in the United States. Can you imagine what is going to happen to the stock when the company manages to enter America?
There is a good chance that the company’s stock is going to soar much higher at that point. At this point in time, the company’s stock is right around eleven bucks. If they managed to break into the United State, you can pretty much guarantee that their stock price is going to double what it is right now. That makes Cronos well worth checking out for any sound minded investor.