Let’s scale it. The weed business has become a boom on the market for many successful investors who are struggling to rip off the jackpot. Since Canada legalized cannabis use for recreational purpose, its demand has significantly increased among a wide range of society. As a result, incomes for cannabis stocks have been exploding. Marijuana stock can be compared with extensive stocks, such as Google, Facebook, or Apple. Are you going to buy marijuana stocks and build a roadmap to marijuana millions? How to make money and how to make more money selling weed? What are the tricks and tips to get in big profits from weed penny stocks? Many people who have already sunk into the pot market say that their lives have considerably changed for the better.
Start right now!
It is essential to start right now and take the most out off the weed market. To the very beginning, you are not obliged to buy the one stock that could make you a marijuana millionaire. Instead, all you have to do to become one of the marijuana millionaires is to monitor the pot market. You should know when it is the best time for making money off weed and which penny marijuana stock to purchase.
If you are a beginner, you should be well prepared as well as learn a lot about this industry niche to turn 10000 into a million dollars and not to lose all.
The roadmap to marijuana millions
For an extended period weed has been used for getting so-called «high” effect and for medicine. Noting changed. However, in comparison with the previous century, marijuana was illegal mostly in all the countries in the world. Cannabis used for recreational purpose is still illegal in most countries. At the federal level, weed is illegal in the US. Besides, today, we see that more than thirty states have already legalized medical cannabis. At the national level, weed plant was legalized in the US at the end of 2018. The difference between marijuana and hemp is that the latter one has a lower THC content that provides so-called “high” effect. Both hemp and cannabis include CBD content that does not include non-psychoactive properties. It does not offer any “high” impact. Instead, it has a positive influence on treating insomnia, stress, anxiety, and provide pressure relief. It can also help to reduce inflammation.
Nowadays, there is a wide choice of marijuana-based products that are available to buy on the market: CBD oils, different marijuana concentrates, edibles, beverages, lotions, creams, and more. The weed industry chain involves businesses that are engaged in growing and marketing marijuana and marijuana-based products.
Tips to know before you buy marijuana stocks
To choose the best company to invest money in, you should follow the following advice:
- Choose the kind of marijuana company: cannabis-focused biotechs, marijuana growers, and ancillary products or services providers.
- Learn more details about the company’s management team.
- Get more information about the company’s strategy for its business growth and its expansion.
- Analyze the competitive landscape of the company to understand how the company you are going to invest money in is going to overcome its competitors and rank better.
- Check out whether the company gets enough of income.
- Understand which kind of marijuana market the company is focused on. Note that each marijuana market has different business opportunities as well as various business risks.
What to look for in marijuana stocks?
One of the most important and necessary things you must do before investing in marijuana stocks is to learn all the risks and check out the management team. Great executives should have a record of accomplishment of success, a good reputation, and responsibility ethically and professionally.
Because marijuana is a popular and fast-growing industry, some companies are in a better position than others are. Many factors have an impact on business growth:
- age of the company
- amount of the target audience
- qualifies a team of experts
- reasonable prices
- professional experience
- and more
Check out the financial status as well as the business strategy of the stock you consider. Make sure it has a sufficient cash position to pay for their operations well in the future. Pay attention to the cost structures for marijuana growers. Those companies that can grow cannabis at the lower price will have better chances to compete on the price. Check out the stocks’ valuations. Those metrics that are based on the historical performance will not be useful in evaluating marijuana stocks because most of their values are based on future growth expectations.
Best marijuana stocks to invest in 2019
With the increased demand for cannabis, the competition of the pot market has risen considerably as well. Luckily, there are many opportunities for potential future investors to choose from. Why? Because hundreds of pot stocks are popping up every day (Constellation Brands, Cronos Group, Aurora Cannabis, Canopy Growth Corporation, Innovative Industrial Properties, Tilray, and many others). These weed stocks are currently trading for pennies. Moreover, these weed socks have also seen tremendous growth over the past few years.
When any of the pot as mentioned above stocks go mainstream, their price will not stay as cheap as it was before. As when the cost rises, it becomes too expensive to trade cannabis, especially for those who are only starting their pot business.
As, for example, Aurora Cannabis, a firm that gets tremendous success in cannabis business after the legalization of cannabis in Canada. As recreational sales of marijuana in Canada, Aurora takes approximately 40% of the whole cannabis market. This company is also known for taking a prominent place in the medical cannabis market. What is more, those who have invested their money in Aurora in 2016 can earn a lot now. Why? Because a $50 000 investment in Aurora in 2016 at $0, 35 per share now be worth $1, 268, 571, 43 today. It is so because Aurora’s stock currently trades $0, 88 per share.
Canopy Growth is the other cannabis firm that is also known for its tremendous success in the cannabis business. Over the past 36 months, Canopy has shown a significant stock growth. If you had invested $ 50K in Canopy in 2016 (when the price per one share was $2, 10) now it would have been $1, 005, 000 as the cost per one stock is $42, 21.
Constellation Brands is well known for its premium beers including Corona and Modelo. However, having made a $4 billion investment in Canopy Growth in 2018 allowed the company to take the center in the world marijuana industry. Both Constellation Brands and Canopy Growth are the most influential leaders in the weed market.
Innovative Industrial Properties is a company that is known as REIT (real estate investment trust). It has many real estate properties, and this company is leasing them to businesses engaged in the marijuana industry. There is a lot of benefits for those businesses who have chosen weed-focused REIT. In comparison with IIP (innovative industrial properties) that owns more than a dozen of features and leases them to 8 customers, REIT can have 1-2 unsuccessful customers and remain successful. Moreover, REIT distributes 90% of its taxable income as dividends to shareholders. It is not all list of benefits (visit its official website to get more details).
Cronos Group is a global cannabinoid company that is focused on production as well as the distribution of cannabis plant across five continents. It operates Cronos Israel and Cronos Australia distribution platforms.
Tilray is one of the largest and the most well known global leader in the cannabis industry. A Canadian pharmaceutics company is incorporated in the United States headquartered in Toronto, Ontario. It participates in a clinical trial of the effectiveness of the cannabis oil for treating nausea and vomiting that are induced by chemotherapy. It is in partnership with the NSW Government, University of Sydney, Chris O’Brien Lifehouse. The composite rating of Tilray is 10 when it is recommended by IBD to choose the stocks that have a composite score of 90 or more. However, in comparison with the marijuana as mentioned above shares, this one is not the best option to choose from, not yet.
Is investing in marijuana stocks a good idea?
The answer to this question depends on the investor, and his desire, whether to invest in the marijuana market or not. It depends on your tolerance for risk.
Anyone who is going to invest in the marijuana market should know that this industry offers high-risk as well as high-reward propositions. Until the risks are higher than rewards, one cannot expect fast and significant profits. However, marijuana exchange-traded funds provide diversification across multiple marijuana stocks. Stocks of companies such as Constellation Brands that have primary operations in the other industries can also lower risks.
If you decide to invest in the marijuana industry, then start small. If your assumptions pan out, you can easily spend more lately. That is what a smart strategy of successful investors means!