It’s been a while since I’ve talked about the marijuana market.
If you’re unfamiliar with the idea of investing in marijuana, don’t worry, you’re not alone.
Most people don’t know that it is perfectly legal to invest in marijuana companies. There are over 200 publicly listed cannabis companies currently being traded on several different exchanges throughout the world.
Just like buying stocks in Apple or Nike, you can buy stocks of marijuana companies. Just login to your brokerage account and with a couple clicks, you can purchase a share of a cannabis company.
If you’re a bit skeptical, let me give you some numbers of several cannabis stocks I recommended several months ago.
$MJNA, which I first wrote about when it was trading for 3 cents, is now trading close to 20 cents. Yes, it’s a penny stock and has lots of volatility, but that’s over a 500% gain.
For those of you who bought then, you could have multiplied your investment by five. One reader emailed me last week and said that he profited over $50,000.
$KSHB is another stock which I wrote about several months ago. This is one of my favorite companies in the marijuana market right now. I even did an interview with their CEO that you can read here.
When I first wrote about $KSHB, it was trading near $2. Today, it’s well over $3. For those who bought then, you’re looking at nearly 75% gains.
And I’m not cherrypicking here. These are the two stocks that I personally invested in after I wrote about them. But, truthfully there were many other cannabis stocks that did even better.
The report that I released for free is still available here and includes many of those stocks that exploded. It’s a couple months old, but it still has a lot of pertinent information and should help you get a better perspective of what companies are out there.
If you’re thinking that you missed the train and that all the profits are gone, then you should think again.
Like I said in the beginning: Most people don’t know that it is perfectly legal to invest in marijuana companies.
On top of that, many people don’t even realize what is happening around the world right now in regards to cannabis.
The UK just legalized medicinal cannabis a couple days ago:
“The Medicines & Healthcare products Regulatory Agency (MHRA) classified CBD as a medicine in the U.K. on Tuesday. Department officials, who based the decision on claims that the ingredient has been beneficial in treating serious diseases, were hoping that legalizing CBD for medical use will lead to more research on the effects of the drug.”
Mexico has started in import medicinal marijuana as well ([from the company I originally recommended, $MJNA])http://www.laweekly.com/news/mexico-begins-importing-medical-marijuana-as-views-on-therapeutic-cannabis-evolve-7738171)).
That’s nothing compared to what’s been going on in the US. With new legislation passed after the recent November 8th elections, “more than 20% of adult Americans now have access to weed, medically or recreationally.”
And it’s not just about people smoking joints. There is big money being made. California made more from cannabis than the next 5 largest crops combined.
To put that into perspective, you must understand that California is the worlds largest producer of many crops – and cannabis dwarfed them.
People’s lives are changing too. Because of changes in laws, US states are releasing non-violent prisoners who were jailed for marijuana possession. Vermont just pardoned 200 people.
And others are benefitting to, like our animals. “Pet owners turn to hemp or medical marijuana for many of the same things humans take it for these days including cancer symptoms, pain, inflammation, seizures, nausea, anxiety, chronic skin allergies and loss of appetite.”
If you know how big the pet industry is (think Petco, Petsmart, and all the different animal food brands), then you know there is big money to be made in this area.
While this all sounds exciting, marijuana is still technically illegal by US federal standards. But there seems to be too much momentum to stop this cannabis movement.
Marijuana would provide a huge tax revenue source for the government, and it would also help some legitimate issues like treating cancer patients, pediatric epilepsy and PTSD.
“During a meeting with President-elect Trump’s transition team last week, leaders of the American Legion urged the incoming administration to reschedule cannabis for the benefit of the nation’s soldiers.”
So, we can clearly see that there is a lot of positive movement going on in this space. However, don’t get blinded by the idea of getting rich from cannabis investing. There is still a ton of risk.
Many publicly listed cannabis companies are nothing more than a scam. They are companies specifically built to go public and then crash later down the road, all while allowing the company executives to walk away with a hefty profit.
That said, I still believe in the two companies I originally recommended, $MJNA and $KSHB.
These two will still see a lot of volatility and are not completely safe, however I believe that $MJNA is a buy anytime it dips below 12 cents and $KSHB is a buy anytime it dips below $3.
Disclosure: Cody owns 100,000 shares of $MJNA bought at an average price of $.03 and 5,000 shares of $KSHB bought at an average price of $2.