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Are Marijuana stocks a good investment in 2020?

The marijuana industry comprises of firms that are engaged in study, growth, and supply of marijuana (be it medical or recreational marijuana). Marijuana has started gaining broader recognition following its legalization in an increasing number of countries, states and other jurisdictions for medicinal, recreational and other uses.

Why do people invest in marijuana stocks?

The marijuana industry comprises of firms that are engaged in study, growth, and supply of marijuana (be it medical or recreational marijuana). Marijuana has started gaining broader recognition following its legalization in an increasing number of countries, states and other jurisdictions for medicinal, recreational and other uses.

How to Invest in Marijuana Stocks

            As countries and states legalize the use of marijuana and its components, and investors look to make profit, we have detailed out investment opportunities, dangers and procedures that will help on how to invest in marijuana stocks.

 

  • Know the types of cannabis products: Knowing the types of marijuana products is really essential when investing in marijuana stocks, as there are two broad categories of cannabis products. We have the recreational marijuana and medical marijuana.
  • Understand the different types of marijuana stocks: There are different types of marijuana stocks the same way there are different types of marijuana products. The several different categories of marijuana stocks you will need to get accustomed to if you want to invest include; The ancillary products services which are companies that support the marijuana growers and manufacturers industry, the Cannabis-related Biotech which are companies that examine and produce medicines that are cannabis-based, and the Marijuana Growers which are companies that cultivate marijuana to dispense the end product to either their customers or firms that make cannabis products.
  • Know when to enter or exit the market: When investing in marijuana stocks, one thing is to assess the performance of companies while knowing the time to invest or exit is another thing. To run a successful investment, it requires a continuing view of the market.
  • Identify your investing timeline: Knowing your investing timeline is also a factor investors need to consider when investing in marijuana stocks, as different timelines have different risk threshold, which will definitely have a say on the investor’s decision to buy and sell at the right time.

 

The Leading Cannabis Companies

Tilray

 

Tilray is the first pure-play marijuana IPO on a big U.S. exchange. Since its IPO in 2018, Tilray stock has been estimated to grow nearly 600 percent. It is the first company that has received permission to import cannabis into the United States for medical research. This company made its debut in NASDAQ with an IPO price of $17, while its revenue in the same year was $20 million.

The current stock price as at the time of writing is $7.09.

Canopy Growth

Canopy Growth is the largest marijuana grower in Canada in terms of market cap. This company is endowed with a management team with strong and solid experience in the marijuana industry. This company is positioned well in the recreational marijuana market in Canada, and also has its operations in multiple marijuana markets, most especially, in Germany. For Canopy Growth Corp., the stock price is currently at $18.33 as at the time of writing this article.

 

Aurora Cannabis Inc

Aurora Cannabis Inc is a Canadian licensed cannabis producer which has its headquarters in Edmonton. For Aurora Cannabis, the current stock price is at $0.85.

 

Organigram Holding

Organigram Holding Inc. is a leading producer of high-quality, indoor-grown recreational and medical cannabis in Canada. The current stock price is at $2.33.

 

Horizons Marijuana Life Sciences (ETF)

Horizons Marijuana Life Sciences is also a leading financial services company in North America, founded in 2005. As at the time of writing this article, the stock price is at $5.92.

Note:  Since stock market prices can be volatile, please understand that the stock prices included at the time of writing may vary from the most current value(s).