Buying Stock in Marijuana Companies
Posted by Glenn Beierle on 02/02/2015 in Economics
Updated on March 16, 2018. Medical content reviewed by Dr. Richard Koffler, MD, Board Certified Physiatrist
people who are interested in investing into cannabis related businesses. For the most part, cannabis businesses are still being traded as Penny Stock and are quite volatile due to legal constraints, laws changing and so on. Whenever there is a victory in cannabis legislation, you’ll notice a spike in stock value, yet as time progresses, the value fades proportionately.
Companies like GW Pharmaceuticals are attempting to extract cannabis compounds and manufacture designer drugs, which holds a bit more stability in the marketplace. The problem is that almost 90% of all drugs fail to pass FDA trials, which makes investing into a company like that still “risky business”.
Nonetheless, if one of these drugs manage to pass FDA trials, the potential revenue spike could be quite significant. Currently GW Pharma’s stocks are very pricey and the returns doesn’t look too good. Another company worth watching is INSY which already has generate sales and profits and the stock is cheaper than GW Pharma.
Budding Cannabis Companies
Now, let’s step away from Biotech companies for a second and check out budding cannabis companies. There have been plenty of talk from prominent celebrities about launching their cannabis companies. From Tommy Chong to Bob Marley, people are ready to start creating global cannabis brands. It’s important to see ‘what products’ they will be pushing and to actually get in touch with the companies prior to making a decision to purchase stocks.
These bigger cannabis companies promises to hold a bit more stability on the market mainly due to the names attached to it. Yet as we are still in the battle of Federal legislation, no one can say for sure how they will perform over time.
Where to find Cannabis companies?
For a comprehensive list of cannabis businesses, you should head over to MarijuanaStocks.com that gives you a daily update on the performance of a big list of cannabis-based businesses. They have a section about Penny Stock investment and what you need to look for when buying. It is important to conduct your research and to wait for the right times to invest since these stocks tend to increase in value when important legislation is passed.
The market is still very young, and we still require some serious reform of our cannabis laws to be able to say with absolute certainty which companies will be the next billion dollar corporation, but it seems that America is going green and to jump on the bandwagon early on could be very profitable for you, if you know what you’re doing.