How To Begin Investing In Marijuana

With the legalization of marijuana in specific areas of Canada and the United States, you may be interested in investing in this high-growth industry. To understand the best way to do this, you need to know about the different types of marijuana stocks and what you should look for when you’re investing.

Understanding the Different Types of Marijuana Products

Over 30 US states have legalized marijuana for medical use, and in some states, it can be sold recreationally. If a person wants to purchase medical marijuana, they’ll need a prescription from a healthcare provider, which is usually for symptoms such as depression, anxiety and stress.

Medical marijuana is available in different forms that can be smoked, vaped or consumed via beverages or edible products. Cannabidiol (CBD) is a common product that comes from the cannabis plant. It doesn’t contain delta-9 tetrahydrocannabinol (THC), which has psychoactive properties. These products are usually used for health benefits.

Marijuana products that contain THC are typically used by recreational users who want to feel the effects of psychoactive properties. They tend to smoke cannabis flowers, vape concentrates or consume edibles.

Different Types of Marijuana Stocks

When you’re looking for the best marijuana stock to invest in, it’s important to understand the different types available, which include the following:

Cannabis Retailers and Growers: Companies involved in this category are involved in cultivating cannabis, which is usually done in greenhouses or large indoor facilities. They will harvest their crops and distribute end products in the form of concentrates, flowers or edibles. These companies or other independent companies can also choose to operate retail stores, which sell recreational and/or medical cannabis.

Ancillary Services and Products: It takes specific equipment to grow marijuana. The companies in this category supply lighting and hydroponic systems to marijuana growers. Large fertilizer companies can also be included in this niche.

Biotechs Focusing on Cannabis: Some biotech companies focus primarily on creating cannabinoid drugs.

Basics of Cannabis Investing for Beginners

When you invest in marijuana stocks, it’s important to apply the same type of basics that you would for any stock investment. You may want to check out the management team of a company and examine their track record. It’s best to find companies that have a strategy put in place for growth, which might include an organic plan or expansion via acquisitions.

You’ll also want to analyze competition when you’re looking for the best marijuana stock to invest in. Try and find a company that differentiates itself. You can do this by seeing if a company is working with top partners or producing a profit. The marijuana industry is still in its infancy, which means you will probably find companies that aren’t generating profits. This can be a good plan if they are focusing on growing their operations.

It’s also helpful to learn if a company is focused on targeting specific geographic markets. Each geographic market will present a unique opportunity, which can be highly beneficial to a company if they are the leader in that area.

Benefits of Investing in Marijuana

When you’re investing in the stock market, you can choose to purchase stocks and industries that are riskier than others. Marijuana stocks provide this opportunity. They can be more volatile than a lower risk energy stock or stocks related to companies selling consumer products such as household detergents. The benefit of investing in marijuana stocks becomes apparent when you look at the rewards and profits they can create.

Like any investment, you need to look at your risk profile and decide how much you want to invest in your first position. If your risk profile allows you to invest 30 percent in the category of higher-risk stocks, you may want to include one or more marijuana stocks in that part of your portfolio. To do this, it’s usually best to begin with a small position. If you recognize an uptrend in the stock or stocks you’ve invested in, you can always add more shares in the future.

Now that you have learned more about the basics of the marijuana industry and how to find different marijuana stocks, it’s time to do some research and decide on the type of company you’d like to invest in. This will help you pinpoint your decision when you are ready to make a purchase.

Top Three Best Performing Cannabis Stocks Over The Past Year

CALIFORNIA: SECFilings.com, a financial news and information portal offering free real time public company filing alerts, announces the publication of an article covering the top three best performing stock of the past year. Companies discussed are AXIM Biotechnologies (OTCQB: AXIM), Supreme Pharmaceuticals, and American Cannabis.

#1: AXIM Biotech (+2,445.61%)

AXIM Biotechnologies Inc. (OTCQB: AXIM) is focused on developing a portfolio of over 20 cannabinoid-based pharmaceuticals and nutraceuticals along with 17 patents and 20 trademarks. The company’s flagship products utilize its proprietary chewing gum-based delivery system to provide consumers with superior bioavailability without the negative side effects or stigma of smoking cannabis or taking consuming edibles.

In recent months, the company began early-stage clinical trials of its CanChew Plus for the treatment of irritable bowel syndrome (“IBS”), as well as CanChew Rx for treatment of pain and spasticity in Multiple Sclerosis (MS) patients which is projected to reach a market size of $20 billion by 2024. In addition to those programs, AXIM recently announced a partnership with a US API company to develop an alternative generic version of FDA-approved Marinol® as reported by Forbes. These clinical programs represent multi-billion dollar markets where cannabinoids could prove beneficial in providing patients with much-needed relief.

#2: Supreme Pharmaceuticals (+286.44%)

Supreme Pharmaceuticals Inc. is a one of about 40 licensed producers of medical marijuana under Health Canada’s Access to Cannabis for Medical Purposes Regulations — or ACMPR. The company’s 7-acre — 342,000 square foot — hybrid greenhouse combines the best practices of indoor cultivation with the cost structure of a greenhouse to produce high-quality marijuana at a low cost.

Unlike many other licensed producers, the company is focusing exclusively on the business-to-business market where it will employ a wholesale business model. The company anticipates that the greenhouse will be capable of producing over 50 million grams of cannabis per year at full capacity. Its next buildout will bring on an additional 80,000 square feet of production space in addition to the 40,000 square feet that’s already operational.

#3: American Cannabis (+173.5%)

American Cannabis Co. is a business-to-business consulting firm and distributor of ancillary products and services to the cannabis industry. The company offers turnkey end-to-end solutions to existing and aspiring businesses in the cannabis industry by leveraging its hands-on experience and knowledge to provide business planning, license procurement, and operational best practices.

Recently, the company announced that it secured its first retainer client in the State of Louisiana. CB Medical LLC engaged the company’s services as an applicant of the LSU-sponsored medical marijuana program. The two companies aim to design and operate a medical marijuana program for patients in Louisiana in partnership with the state’s leading university — complete with an indoor cultivation center and laboratory.

Please follow the link to read the full article: http://analysis.secfilings.com/articles/164-top-3-best-performing-cannabis-stocks

Small Cannabis Companies Capitalize on Market Growth

NEW YORK: The Cannabis Sector has been heating up for a number of years now. In the past few years, there has been a huge surge in new companies stepping in because of user growth. According to a Gallup poll on August 8th, 2016, one in eight U.S. adults say they smoke marijuana. The report elaborates even further that thirteen percent of U.S. adults currently smoke marijuana, which is roughly up almost double that from 3 years ago. This indication is why small Cannabis companies are trying to capitalize on the sector growth. Medical Marijuana, Inc. (OTC: MJNA), Terra Tech Corp. (OTCQX: TRTC), General Cannabis Corp. (OTCQB: CANN), South American Gold Corp. (OTC: SAGD),CV Sciences, Inc. (OTCQB: CVSI)

Many states along with the current ones that are now legal for medical or recreational use of marijuana have also grown in the past few years. As a result, lots of entrepreneurs and business savvy companies have been trying to capitalize on the market growth.

Small companies are looking to make a name for themselves in this space. The current ones in the public equity markets that have been tremendous attention grabbers are Medical Marijuana, Inc. (OTC: MJNA), their mission is to be the premier cannabis and hemp industry innovators, leveraging their team of professionals to source, evaluate and purchase value-added companies and products, while allowing them to keep their integrity and entrepreneurial spirit. Terra Tech Corp. (OTC: TRTC), operates through multiple subsidiary businesses, including: Blüm, IVXX Inc., Edible Gardens, MediFarm, LLC and GrowOp Technology. Blüm’s retail medical cannabis facilities focus on providing the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions.

Golden Leaf Holdings Announces Q2 2016 and June 2016 Preliminary Results For Oregon And Washington State Brands

OREGON: Golden Leaf Holdings Ltd. (“GLH” or the “Company”) (CSE: GLH), a leading cannabis oil solutions company built around recognized brands, today announced preliminary revenue results for Q2 2016 and June 2016 for the respective brands of the company in Oregon and strategic partner BMF Washington.

GLH Oregon Revenue Overview

Preliminary results show that GLH generated US$3,011,000 in estimated and unaudited revenue for Q2 2016 as compared to unaudited revenue of US$2,476,688 for Q1 2016, representing a quarter over quarter increase of 21.5%.

The Company posted preliminary results for June 2016 showing UD$923,000 in estimated and unaudited revenue as compared to US$1,067,000 (updated and revised from previously published number) in May 2016, representing a month over month decrease of 13.5%. GLH sold all of the products that it produced in the month of June.

GLH experienced lower than anticipated revenue in June 2016 due to a variety of unexpected challenges. The Company is developing plans to address these variables as shown below:

Issue Proactive Response
Production obstacles, including cash constraints that impacted trim and flower purchases, trim quality issues and product testing delays from 3rd party vendors made it more challenging to source material inputs and produce product in a timely manner. GLH is leveraging cash from current convertible debenture funding to fulfill raw material requirements. The Company has developed a strategic trim supply agreement program focused on contracting with selected farmers to obtain low cost supply of high quality flower and trim with specific strain and genetic characteristics. GLH purchased new testing equipment to ensure the quality of trim and efficiency of testing timelines. The Company is building relationships with testing vendors to effectively manage testing bottlenecks.
The Oregon cannabis market saw slower than expected recreational consumer adoption of oils and extracts. The concept of using a vape pen for delivery and usage of marijuana is still relatively new for the average recreational user. The Company is working with dispensaries to provide merchandising tools that educate the consumer on the benefits of cannabis oil and new delivery systems.
The retail buying process at medical marijuana dispensaries, including effective purchasing and supply chain management is still evolving. Not all dispensaries stocked the appropriate inventory to meet new recreational consumer demand. Dispensaries are becoming more familiar with customers buying behavior, but room for improvement exists with raising the level of sophistication as it relates to inventory management and regular purchasing patterns. GLH is working closely with dispensary customers to help manage stock levels and ordering cycles.

Don Robinson, Chief Executive Officer of GLH, commented, “While June 2016 Oregon sales results were lower than expected, we were encouraged by the strong sell through of all available inventory produced. We were also pleased with the positive consumer response to the relaunch of the Golden brand and the new product launch of Private Stash. Our sales and marketing team worked with dispensaries across the state to not only introduce new products but new merchandising tools that elevated the consumers’ shopping experience and increased brand awareness.”

BMF Washington Revenue Overview

Preliminary results show that BMF generated US$1,370,445 in estimated and unaudited revenue for Q2 2016 as compared to unaudited revenue of US$904,359 for Q1 2016, representing a quarter over quarter increase of 51.5%BMF’s June 2016 unaudited and estimated revenue in Washington state was US$537,880, a month over month increase of 13% from May 2016 of US$475,457.

Is It Finally Time to Invest In Marijuana?

DISTRICT OF COLUMBIA:  As public sentiment continues to shift in favor of marijuana legalization and more states legalize medical (and in some cases even recreational) marijuana, more people than ever are wondering whether now is the time to invest in marijuana. This interest persists despite the fact that the federal government bans both recreational and medical marijuana use and could shut down states’ marijuana operations at any time.

With the federal ban in place, it’s not easy to invest in marijuana in the public markets. There are no ETFs or anything of the sort, so the only option for public market investors is individual marijuana-related stocks. We asked our Motley Fool contributors whether it’s finally time to invest in marijuana. Here’s what they had to say.

3 Marijuana Stocks That Could Go Up in Smoke

DISTRICT OF COLUMBIA:  The potential to use marijuana as a treatment for various diseases has captured the attention of doctors, patients, and investors, but that doesn’t guarantee marijuana stocks will keep going higher. In fact, there are plenty of reasons why marijuana stocks could stumble. Read on to learn why our Motley Fool experts think that these marijuana stocks could see their plans go up in smoke.

Dan Caplinger: Among marijuana stocks, GW Pharmaceuticals  (NASDAQ: GWPH  ) has gotten a huge amount of publicity, in large part because of its 63% rise in 2014 on the heels of having nearly quintupled during 2013 after its initial debut. The company specializes in developing therapies based on cannabinoid compounds derived from marijuana plants, and GW Pharma has long believed that these compounds can bring positive effects in treating cancer, epilepsy, and other serious conditions.

So far, GW Pharma hasn’t had the sales success that investors will want to see from the company in the long run. That’s not surprising for a biopharmaceutical company with a healthy pipeline of promising drugs, but it does mean that GW Pharma is as yet an unproven prospect for investors. The company has ample cash to survive for a long time, so further capital raises aren’t likely to dilute shareholders in the near future. Yet until GW Pharma can verify its promising early findings — and more importantly, convince regulators that any harmful effects from compounds derived from a substance that is still classified as a Schedule 1 drug by the Drug Enforcement Agency are worth the potential benefit — the stock will have some risk of going up in smoke.

SEC Allows Pot Dealer To Register Stock

NEW YORK:  The U.S. Securities and Exchange Commission has allowed a share registration to proceed for a company whose business model includes cultivation and sale of marijuana, which are both illegal under federal law, though legal under some state laws.

This approval appears to be the first green light for a share registration by a company in this line of business and could set a precedent for marijuana dealers to access the equity markets, but the agency’s ambivalence about such a business model is clear from the way it handled the registration.

Irvine, Calif.-based Terra Tech Corp. TRTC, +2.35%   recently received approval for its disclosures and the registration of its shares.

Another company planning to cultivate and sell marijuana also has a pending application with the SEC, a source familiar with the company said.

 

 

 

Are There Any Marijuana Stocks To Buy In 2015?

DISTRICT OF COLUMBIA:  Perhaps nothing caught the eyes of speculative investors more than marijuana stocks in 2014, but just because marijuana stocks put up significant returns last year doesn’t mean that they can do it again in 2015. We asked our Motley Fool contributors to share their thoughts on whether there are any marijuana stocks investors might want to buy this year. Read on to learn what they think.

Todd Campbell: Most marijuana-related stocks offer more promise than they do profit, but Insys Therapeutics  (NASDAQ: INSY  )  is an exception.

Insys is developing a slate of therapies based on the marijuana cannabinoid CBD, but it’s already got a fast-growing, top-selling pain medication on the market that’s throwing off shareholder-friendly profits. That drug is Subsys, a fentanyl-based opiate that’s prescribed to treat breakthrough cancer pain. Sales of the drug jumped 105% year over year in the third quarter to $58.2 million, which led Insys to report adjusted EPS of $0.63. Thanks to Subsys, Insys is debt free, with the financial firepower necessary to advance its marijuana therapies through trials. The company expects to launch CBD trials in both Dravet Syndrome and Lennox-Gastaut Syndrome patients early this year, but it’s also been awarded orphan drug designation to study CBD in glioma, a tumor of the brain or nervous system; glioblastoma multiforme, the most common and most aggressive malignant primary brain tumor in humans; and pediatric schizophrenia. Although Insys’ research into CBD is at a very early stage, it should also soon be refiling its application for FDA approval of oral dronabinol, a new formulation of the long-standing marijuana-based chemotherapy drug Marinol. With one top seller already, another possibly coming soon, and a slate of intriguing CBD drugs in its pipeline, Insys is a stock investors may want to own.

Will Marijuana Stocks Soar In 2015?

DISTRICT OF COLUMBIA:  Marijuana stocks have been some of the market’s top performers this past year as investor optimism has soared. However, that impressive run might not carry over into 2015, at least not for all companies.

That’s because 2015 could be the year marijuana investors become more selective, picking and choosing the best-in-breed plays and ignoring those with the most question marks. With that in mind, let’s consider what might lie ahead in the new year for two of this year’s biggest marijuana winners: GW Pharmaceuticals  and Insys Therapeutics.

A bit of background
In 1996, California became the first state to approve the use of medical marijuana. An additional 22 states have since legalized marijuana for use in patient treatment, including Maryland, Minnesota, and New York in 2014.

Rising awareness of marijuana’s potential as a therapy for pain caused by diseases such as cancer or glaucoma has sparked a wave of ballot measures legalizing marijuana possession for medical purposes. That awareness is also sparking renewed interest in legalizing marijuana for recreational use. So far, four states have passed laws allowing for possession of a small amount of recreational marijuana: Colorado, Washington, Oregon, and Alaska. Washington, D.C. has done the same.

 

Marijuana Growers Sprout On Wall Street As Pot Goes Public

CALIFORNIA:  Derek Peterson may soon become the first CEO of a public company that cultivates, distributes and sells marijuana.

Terra Tech Corp., based in Irvine, California, won approval last week from the Securities and Exchange Commission to raise $6.8 million to build and operate medical marijuana operations in Nevada, where the company secured preliminary approvals.

The company will seek to raise about $7 million more later in the year, Peterson said.

The company’s MediFarm division, which plans to grow, distribute and sell marijuana in Reno, Las Vegas and other parts of the state, has blazed new ground in the on-going debate over marijuana legalization by gaining acceptance from a federal agency, the SEC, which is tasked with safeguarding public markets and investors. The federal government, after all, still considers marijuana to be as dangerous as heroin or LSD.