Why maruijana stocks are among the best investing opportunities
Not only the plants, but also investing in weed companies itself is starting to grow. Every year you can buy more stocks from different cannabis companies in the US and Canada. Since the 5th of April, the first dedicated marijuana ETF is launched. Participating in this growth market today is one of the promising options for investors. According to data from jointindustries.com, investing in cannabis shares has already yielded a lot. See the figure below.
A fast growing market cannot be found anywhere else, says an analyst against Bloomberg. Until 2025, the market could even double to 40 billion euros.
The US market for medicinal weed reached a total of 7 billion dollar last year. By 2020 will the market count up to 22 billion dollar, following the data from market researcher Arcview Market Research. The chance of further growth is significant as the market for recreational use of weed will also opens.
A fast growing market cannot be found anywhere else, says an analyst against Bloomberg. Until 2025, the market could even double to 40 billion euros. The only uncertain factor in the US is that Donald Trump's government does not seem to be very open to recreational cannabis use. However in Canada, progressive Prime Minister Trudeau submitted a legislative proposal to legalize the use of cannabis.
The US and Canadian cannabis market are among the most promising speculative growth markets. Investors can already benefit from it because a large number of cannabis producers and suppliers are listed on the stock exchanges. Shares are for sale for everyone.
Because there are so many companies you can invest in with this emerging market, I will give you three established names below. One is a large pharmaceutical company and the other two are pure play marijuana companies. Keep in mind that these companies can be overvalued and sometimes don't make any profit because they are expanding rapidly. The chart data is taken on Monday 5 June 2017.
1. Abbvie (Ticker: ABBVE)
Abbvie is a US based pharmaceutical company that discovers, develops and markets both biopharmaceuticals and small molecule drugs. Abbvie is ahead of the pack in medicinal use because it has a cannabis-based drug on the US market, the FDA approved Marinol. Abbvie is not a pure play cannabis company but it is one of the companies that can take a advantage of an open cannabis market. Abbvie is benefiting from a host of new drugs out of the pipeline, including Marinol. With a dividend of 4% it's a relative safe company that can diversify your portfolio. If you want to profit from the cannabis market but you don't want to take much risk, Abbvie is a good choice.
2. Canopy Growth Corporation (ticker: WEED)
Canopy Growth is a Canadian producer and retailer of medical cannabis products and oils. Currently it has a 1.2 billion dollar market cap. The company currently has six licensed facilities and approximately 665,000 square feet of production growing capacity. Canopy Growth is one of the market leaders that can benefit from its size. It is an aggressive acquirer and recently did the acquisition of Mettrum Health. With Mettrum Health it increased the number of licensed facilities to six, which gave the production capacity a boost to 665.000 square feet. Besides that, the acquisition of Mettrum gave Canopy access to about the half of the Canadian cannabis market. Being one of the biggest and aggressively acquiring other companies makes Canopy one of the noteworthy companies in the industry
3. Aurora Cannabis Inc. (ticker: ACB)
Aurora is also a Canadian based company and is half the market cap of Canopy Growth. Despite being half the size of Canopy, Aurora sets its goals to grow fast. Currently, Aurora Cannabis' lone producing facility is a 55,200 square foot facility in Mountain View County. More importantly is the expansion project. Aurora Cannabis is constructing the Aurora Sky, an 800,000 square foot facility that will be the largest and most technologically advanced cannabis production facility in the world. At full capacity, it's expected to generate 100,000 kg of cannabis a year. Aurora Sky could be completed as early as late 2017. The expansion project of Aurora looks very promising for further growth. The capacity of 800,000 square foot and new technology will decrease the production costs of marijuana.
I hope these investment opportunities will be valuable for you. If you like the content please upvote my article and follow me for more content in the future. Feel welcome to discuss the subject.
Lets keep this BOOMING!
UnknowCrypto
Source listing
https://www.arcviewmarketresearch.com
https://www.bloomberg.com/europe
http://www.google.com/finance