Pot stocks represent lucrative investment opportunities for people in the United States and Canada to make money in the newly legalized medicinal and recreational cannabis industry. Through the purchase of stocks in a number of types of companies involved directly and peripherally in the growth, processing and sales of cannabis products, savvy, visionary, investors have the opportunity to get in on the ground floor of companies poised to help to develop the lucrative, burgeoning cannabis market. Experts estimate the market for cannabis and cannabis-related products in North America will soon generate over $100 billion a year. If you want to know How To Profit From Pot Stocks, this article will help you.
Types Of Pot Stocks Investment Opportunities
People can invest in pot stocks from companies involved in a wide range of aspects of the cannabis industry. Some of the segments of the cannabis industry in which publicly traded companies are involved include:
1. Cannabis Production And Distribution
2. Creating Cannabinoid-Based Medicines
3. Producing Equipment And Supplies Cannabis Companies
4. Providing Support Services For Cannabis Businesses
A Variety Of Key Roles
There are publicly traded companies that play a variety of roles in the cannabis industry that offer lucrative investment opportunities. People can invest in pot stocks from businesses whose jobs involve planting, feeding, monitoring, harvesting and distributing cannabis plants and products. Excellent investment opportunities also exist in the pharmaceutical and biotechnology companies that are hard at work using cannabinoids to create effective, much-needed medicines. Investing in the ancillary businesses that produce and provide the equipment that companies that produce and distribute cannabis products use can also deliver a robust ROI. Investors can also make significant profit by putting money into the technology, real estate and consulting services companies that serve the cannabis industry.
A Bright Future For Pot Stocks
Most experts agree that companies are just scratching the surface of the money to be made in the cannabis industry in Canada and the United States. As legalization becomes more widespread and consumers look for better, more effective products and services, the amount of money the cannabis industry generates will grow exponentially. Plus, as the number of people using medicinal and recreational cannabis continues to grow, people who are early investors in pot stocks could see the size of their dividends soar to stratospheric heights. The cannabis industry in North America is anticipated to enjoy tremendous growth over the next two decades.
Where Pot Stocks Are Listed
Companies involved in cannabis related businesses are beginning to make significant inroads into mainstream investment platforms. There are now pot stocks available to investors on the New York Stock Exchange as of May 2018. The Nasdaq trading platform had a cannabis company make their debut in February of 2018. While there are only a few pure cannabis companies currently trading on NYSE and Nasdaq, there are many cannabis companies trading as penny stocks in Over-the-Counter markets. Investor risk perception and skepticism is fueled by the regulatory uncertainty around cannabis use in the United States.
Opportunities Abound With Pot Stocks
On a recent webinar on cannabis investing, one of the speakers, a well-respected investment expert, pointed out being traded on the OTC markets doesn’t mean cannabis companies represent dodgy pot stock. The fact cannabis is illegal on the federal level in the United States has forced some good companies into the OTC market. It was their only option. But cannabis laws and perceptions are changing rapidly in the U.S. With Illinois recently legalizing recreational use of cannabis, 30 states now allow cannabis companies to operate legally. Excellent investment opportunities abound for people who do their homework.
Investors looking to earn profits from pot stocks can put their money into companies directly involved in growing and producing cannabis. There’s also the lucrative option to invest in pharmaceutical companies involved with medical marijuana. There is also the world’s largest publicly-traded cannabis company involved in producing both medical and recreational cannabis. If they do their due diligence, investors can find some pot stocks that are gems in the OTC markets. Good returns can be made investing in companies creating cannabinoid oil-based anti-cancer drugs and drugs for treating AIDS patients.
Invest In Canadian Pot Stocks
The Toronto Stock Exchange has several pot stocks that show great promise. Some of them own and operate several popular brands. One has had revenue of almost $60 million in the 2019 fiscal year alone. One Canadian cannabis company has teamed up with a beverage giant to produce new cannabis-infused beverages. The largest legal cannabis deal so far is the $250 million all-stock deal merging two Canadian cannabis companies that together produce more than 570,000 kilograms of cannabis annually. They serves markets in Canada, Germany, Israel and Australia and generated revenue in excess of $7.2 million in 2018.
Invest In Established Companie
As legal barriers to the cannabis industry fall, it’s expected that large traditional tobacco and alcohol companies will begin to enter the cannabis industry. They will make attractive investment targets because they already have extensive production, distribution and marketing networks they can use to quickly expand their cannabis operation and reach out to their established customer bases. This can allow investors to potentially get great returns. There are also diversified agricultural companies with medical cannabis production and dispensing operations that are over a decade old. These are also good investment choices.
Successful OTC-Listed U.S. Companies
Investors can also make money on the pot stocks of successful OTC-listed American companies. Some already have temporary authorization that allows them to cultivate, manufacture and manufacture cannabis and cannabis-derived products and sell them on a retail level through dispensaries. One of those companies had revenues of $8.6 million in just the first quarter of 2018. Companies that synthesize cannabis for use in medical applications are also good businesses in which to invest. Some make and market synthetic cannabis-based drugs that are in great demand by patients all over the world.
Pot Stocks Include International Cannabis Companies
There are pharmaceutical companies based in Europe that are using cannabinoid compounds to produce drugs that are effective in treating the seizures associated with several forms of epilepsy. There are also biotechnology companies that are developing cannabis-based drugs to treat acute and chronic pain, inflammatory bowel disease, dry eyes and more. There is a great deal of demand for these innovative new drugs. Investors can get involved with these companies while their cannabis-based products are in the development phase and make a good ROI when their products hit the market.
Where to Buy Pot Stocks
There are a number of buying options for investors who are interested in pot stocks. Some are available on the major stock exchanges like NYSE and Nasdaq. Others are traded as Over The Counter stocks. It is also possible to invest in pot stocks through one of the major brokerage houses, an experienced stock brokers or using an online broker you trust. Deciding on the best option depends on the amount of research you want to do for yourself, the size and type company in which you want to invest, the amount of money you want to invest and whether or not you need a broker. That will determine the type of brokerage account you need to invest in the most lucrative pot stocks.