Are you looking to invest in marijuana stocks? While we will admit that the cannabis market is volatile, the experts estimate that the industry will triple in the coming years. Thanks to the new Farm Bill valid from 2018, growing and selling hemp is now legal on a federal level. That’s why everyone expects the market to increase significantly, and that is something you should use to your advantage.
In this article, we are listing the top marijuana stocks worth buying in fall 2019-2020. If you are a first-time buyer, we will also tell you more about the process and discuss a share that may be the wisest choice at this moment.
What Are the Different Types of Marijuana Stocks?
If you are going to invest in marijuana stocks, you should learn more about them. The best way to start is to discover major types of stocks available in the market.
We can divide cannabis stocks into the following categories:
- Growers – many investors stick to these companies because they have the most direct connection to cannabis production. Growers are businesses that grow marijuana and sell products to customers. The cannabis legalization on a federal level is essential for these companies, and many of them should look forward to expansion soon.
- Biotech – these companies focus on developing various medications and other synthetic products that contain cannabis. Their goal is to research new opportunities for cannabis items. If the product succeeds, the success will be huge, but the risk of the public not approving products is also high.
- Suppliers – these businesses do not grow marijuana, but they supply it to others. They may also acquire cannabis from producers and use it in their products, such as fertilizers, drugs, etc.
How to Invest in Marijuana Stocks?
Are you looking to invest in the cannabis industry? The crucial advice that we can give you is to be careful and not rush with any decisions.
Your first task is to understand how a stock market works. Marijuana companies are available on significant stock exchanges and OTC markets.
Next, you should learn more about the types of stocks and marijuana products. For example, do you want to invest in a company that grows and sells cannabis, or uses marijuana to make other products? Additionally, you should understand the difference between medical and recreational cannabis.
The next task is to learn more about the risk of investing in marijuana stocks. The experts forecast that the market is in for expansion. However, that doesn’t mean profit is guaranteed. A risk of imbalance between supply and demand may lead to both profits and losses.
Finally, marijuana still has a negative image and carries political and legal risks. The Farm Bill made cannabis legal on a federal level, but only if the contents of THC are lower than 0.3%. The companies now have to follow new regulations, and you want to be sure that the business you are investing in complies with the law.
If you identify a company worthy of your investment, the cannabis market can bring a significant profit. You want to analyze the current position of the company, its potential, and growth strategy, as well as the management team and finances. All these can help to invest wisely and increase the odds of boosting your profit.
Marijuana Penny Stocks: Are They Worth Investing in?
Before we discuss penny stocks, it is important to define them. According to experts, this term describes companies whose stocks are worth no more than $5 per share. The majority of these companies are on the OTC market and work based on over-the-counter transactions. However, you may find some options available on NYSE and other big exchanges.
The great thing about penny stocks is that you can do all quotations electronically, and there is no trading floor. As for marijuana penny stocks, they can be worth investing in, especially if you choose a company wisely.
The idea is to focus on small businesses with large potentials, such as the ones manufacturing marijuana oil. Alternatively, you can go for companies that are going through a rough patch, but they have a good chance of bouncing back.
Here are some suggestions to consider if you are looking for marijuana penny stocks:
- HEXO Corp. – the company has headquarters in Canada, and their biggest success was going over $8 per share. However, HEXO’s stock value went significantly down over the last months. Is it time for a big comeback?
- Cannabis Sativa – a company that specializes in skincare products that contain cannabis. It is an industry with huge expansion potential, and you can get shares at less than $1 per unit.
- The Green Organic Dutchman – the company focuses on research and development, and it had a promising start when it was founded. Today, you can purchase stocks for less than $1 per share.
ACBFF: A New Leader in Marijuana Stock?
ACBFF is a symbol that Aurora Cannabis uses to trade on the United States OTC market. It is vital to note that you can also find the shares of this company on the Toronto Stock Exchange but under the symbol ACB.
These symbols relate to the same company – Aurora Cannabis (AC). The business was established in Canada in 2016, and its focus is on producing medical cannabis. The idea is to offer medical marijuana to as many users as possible. The company’s vision is that cannabis products shouldn’t be costly but accessible to everyone.
Additionally, AC focuses on delivering high-quality products that guarantee a high effectiveness level. Their main facility is in Alberta, Canada, and they take great care of their plants. The entire process from harvesting to packaging is under strict quality control, which ensures superb quality.The latest news about Aurora Cannabis is encouraging. The company recently invested $10 million into drying technology, and they built a new facility to increase capacities. The news is welcomed by all those who already invested in the company’s stocks. The odds are that this is one of the most tempting marijuana stocks at the moment, which is why you shouldn’t miss this investment opportunity