Marijuana Penny Stocks Are Still Risky But Here Are The Ones You Need To Keep An Eye On In 2018

Marijuana Penny Stocks Are Still Risky But Here Are The Ones You Need To Keep An Eye On In 2018

When it comes to investing, the main priority is usually whether or not it is a good investment or not. But when it comes to investing in companies that are engaged in the manufacturing and sales of marijuana, there are mixed feelings that remain because it has only recently become legal in some states. Republicans and senior citizen still stand largely opposed to the National legalization of recreational marijuana but even those groups are loosening their ideas, and a higher percentage of them are willing to accept its approval.

Is It A Growth Market?

There are few markets that investor could put their money in that has seen as much growth as the industries within the marijuana manufacturing, and sales have. There are companies on the NASDAQ that have seen 12 hundred percent increases and other businesses that currently manufacture and sell medical marijuana that has regularly seen between 300% to 1000% increases. It’s not hard to understand why these increases are driving big and small investors to pay very close attention to this industry.

Future Growth

Not only has The industry seen tremendous growth in the last few years but it is projected to have a 35% growth over the next few years. 2016 reached an all-time high of just under 7 billion dollars, and 2017 will likely see the year end at between $8 and $10 billion. The real news is the fact that some projections suggest that from 2018 to 2026 there will be a growth to $50 billion dollars annually in legal pot sales.

As recently as 1995 there was as little as only one-quarter of the American population that felt marijuana should be legalized Nationwide. Up from that time until this, there has been a softening of the opinion, and now over 60% of Americans would like to see recreational marijuana approved Nationwide. With this type of support, it is almost certain that over the next few years the country will see the entire nation embrace the idea of legalizing the recreational use of marijuana.

Are Marijuana Stocks Traded On The NASDAQ And The New York Stock Exchange?

The New York Stock Exchange and the NASDAQ have share price requirements as well as market caps, and this currently prevents any of the available marijuana stock investments from being traded on those venues. It’s almost certain that in time they will be. At this time, however, marijuana penny stocks are available with the OTC or pink sheets. One of the things that help make marijuana penny stocks a great investment is that over the last few years the OTC has stepped up its game and is doing a rather good job of properly listing and Reporting valid information on the stocks.

It is still a risky proposition as almost all of the marijuana penny stocks are currently still losing money. These Investments are much like those in the early days of the internet when everyone was highly speculating and throwing big money but not making money with it. Of course, many people lost a lot of money speculating and not holding internet companies up to the same standards they did others when investing. This led to those losses. At the same time, the internet did go on to be wildly successful, as we all know.

Marijuana Penny Stocks Are Still Risky But Here Are The Ones You Need To Keep An Eye On In 2018

Marijuana Monopolies

Currently, there are some small businesses that are participating in the growing, processing and even the retail of recreational marijuana. But in some states, the laws are set up so that big business is more easily able to come in and seize all of the available licenses preventing smaller businesses to have a chance in those States and this is leading to the potential of marijuana monopolies. While this might be good for those companies in the long term, in the short term it could mean that profit margins or minimal.

3 Marijuana Penny Stocks You Should Keep An Eye On In 2018

1. GW Pharmaceuticals

This company is based in Britain and is most well known for its treatment products related to multiple sclerosis. It was the first company able to get Market approval in Britain and will likely obtain FDA approval in 2018.

2. Canopy Growth Corporation

This company was formerly known as Tweed Marijuana Inc and is based in Ontario, Canada. Interestingly enough, the symbol for this endeavour on the Toronto Stock Exchange is ‘WEED.’ With the current approval of recreational marijuana taking effect in all of Canada and with the increasing legalization of it in the states, this company is poised to see significant increases in the coming year.

3. Insys Therapeutics

This American based pharmaceutical company is located in Arizona and is already listed on the NASDAQ. The company was founded in 1990, and its specialty is Pharmaceuticals that have therapeutic uses in the effort to improve the lives of patients.

The Globalization Of Legalized Recreational Marijuana

For investors, one of the key things they want to keep an eye on is the fact that the legalization of recreational marijuana is going global. Britain, Germany, Canada, and others are legalizing the sale and use of recreational marijuana. While it is almost inevitable that the US will eventually have nationwide legalization of recreational marijuana, there are some obstacles. Currently, most states are entertaining the idea or have already approved it, but the Trump Administration is vowing to put obstacles in place to prevent the Nationwide approval or the federal approval of the legal possession of recreational marijuana. President Trump has said that he would not interfere with the sale of medical marijuana but that he would stand in the way of federally approving the possession or interstate transportation of legalized recreational marijuana.

For this reason, many investors may want to be looking at Canada especially and also Germany and other areas of Europe. Canada primarily offers some great opportunities as they are poised to soon have a Countrywide approval of the legal sale and possession of recreational marijuana. While the market currently in Canada is only about $80 million dollars per year, this could go to over five billion dollars when recreational marijuana goes in full force.

Marijuana Penny Stocks Are Still Risky But Here Are The Ones You Need To Keep An Eye On In 2018

3 Things That Investors In Marijuana Penny Stocks Need To Know

1. Highs And Lows

Marijuana penny stocks routinely have significant highs and substantial lows. Experienced investors understand that the potential for high returns usually comes with an equal or greater potential of risk. Investors need to be able to evaluate the risk versus the potential profit.

2. Recognizing False Highs

As marijuana stock is currently sold as penny stocks, they have more volatility. It is possible for an investor to invest heavily and make sure that it is publicized so that when other marketers see it, they see the stock as on the rise. This makes it an appealing investment. But as soon as those investors began to invest, that individual then sells off his stock, and the prices plummet.

3. Sunshine And Rainbows

A good investor will keep a constant look for company reports about what’s happening. If the company always releases only the most active and exciting news, then it’s something to be leery about. Very often if the reports that you’re reading are always glowing, then it is likely that company is being paid to put out such reports.

There is little doubt that marijuana is a growth market. But because it is still in the early stages there is a lot of volatility. Investors have a great opportunity to make substantial gains, but there are risks.


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