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