As legalization continues its march through the United States, Canada, and Western Europe, interest in marijuana stocks is growing like crazy. Savvy investors have been taking notice for a while, but the casual investors and day traders can still start to take advantage. So everywhere from Canada to Germany from Massachusetts to Colorado is ripe for some real growth in the marijuana sector. Take a look around at the increase of marijuana investing publications and newsletters to get an understanding of where this could all be going.
There are all sorts of firms out there making cannabis products, growing the plants and even making equipment that services the producers and the cultivators.
That is why learning to invest in marijuana stocks means understanding the difference between all the different companies and what they make. From hemp seed extract to vape oils to actual growers of plants in agricultural centers, the manufacturing side of the cannabis industry is on a serious upward trend.
Beyond Plant Growth
A boom in ancillary businesses like legal services for marijuana businesses and media companies that cover the marijuana business is happening as well. It could be the only sector of the media industry that Wall Street is actually bullish on. There are entire alt-newspaper companies being bought up by private-equity firms with a massive interest in the ad sales potential. It might have just happened to the LA Weekly.
And with the complex web of local, state and federal regulations amid the uncertainty of how the Department of Justice might go after producers, legal services are in high demand. Those in on the ground floor of these service businesses are ripe for growth
The Skinny on the Actual Products
What is the difference between hemp and marijuana? Both come from the cannabis plant, but one is legal and one is not. Hemp suffers from a negative connotation by being associated with marijuana, but it is used mostly for health food products, rope, and clothes, among other dry goods. Marijuana is where the THC is, which is what has the psychoactive effects.
With legalization, business these days are making hemp extract oil because it can have anti-anxiety effects and pain relief properties. It can help people reduce their dependence on alcohol or even prescription drugs. Hemp’s main active ingredient is CBD, which can bring about the medicinal effects of the drug without getting you high.
While marijuana and THC have a bad rap, it is really not even that much more dangerous than alcohol. Many claims that the side effects are reasonable compared to alcohol hangovers. Much of that research will be done now, with legalization gaining steam and more states allowing it to be studied.
Companies in Canada are on the brink of real, exponential growth, as legalization is rolled out slowly in 2018. Buy cannabis biotech companies like Aurora Cannabis that have been preparing for this regulatory environment for a long time. The boom is about to hit firms in that space very quickly. Smart investors need to be ready for it.