Marijuana moves from the black market to stock market
After the legalization of marijuana, under the hood business has turned into a promising venture. A lot of consumers are enjoying pot smoking freedom which has given capitalists and entrepreneurs a new opportunity to invest and start their businesses. Indeed, the trade of marijuana has moved from black market to stock market.
The companies like Terra Tech are directly involved in growing, processing and selling cannabis in the market. Some of these companies are listed on Nasdaq whereas others are mostly found on OTC markets. As of now recreational marijuana is legal in 4 states and medical marijuana in 23 states. The statistics of last year shows a significant tax collection after the states gave relaxation to pot trade. So, it is more likely that so-called marijuana experiment would be considered valid in the coming years.
The popular companies have not shown much liking to deal with cannabis trade. But, the less known companies have become more focused for investments. After many states legalizing the cannabis, much of the money has been invested in these companies. Most of these investors probably will lose their money in the smoke.
Why?
Only the companies that have good infrastructure for production, research and distribution will stay in the business. For instance, Abattis Bioceuticals Corp., a Vancouver-based company has its own cultivation systems, processing equipment and consultancy for supporting growers. The company this year raised its investment by three million for having fair gains in 2015. Also, it is actively involved in the lab research on medical marijuana and cultivation. If one wants to invest in marijuana stocks then performing a background check is very much essential.
Here are some of the marijuana-based companies that you might consider
- Cannabis Sativa Inc.
- mCig
- United Cannabis Corp
- Greengro Technologies
- Mentor Capital Inc
- Terra Tech Corp
Last year marijuana business had huge gains which could be the main reason for it to be the legitimate investment opportunity. According to CNBC, in the year 2014 companies reported a gain of 38.4% and it is expected to go higher this year.
Founders Fund owned by Peter Theil the co-founder of Paypal has also invested in Marijuana.
The business is slowly heading towards mainstream but the risk of changing government policies and market infusion by new startups is a challenge for high-level companies to reap the maximum profits. While new companies are more bound to invest in marijuana the presence of pot penny stocks is high in the stock market. These are volatile and risky like any other penny stock. The investors need to keep an eye on pump and dump to have a steady growth in marijuana investments.
