Where Can Marijuana Stocks Go?

by Justin on February 7, 2018

0 Flares Filament.io 0 Flares ×

The revolution of marijuana stocks is well underway. As legalization gains steam in states across the country and in countries around the world, the inevitability of legal cannabis throughout the United States is hard to argue against. There is not a lot of faith in the ability of a small number of renegade federal Justice Department officials with memos to turn back the tide of public opinion and serious capital investment.

That means that the opportunities for investors and traders in the marijuana sector are also here to stay. The market is set to grow, no pun intended, by leaps and bounds by the year 2020. Billions of dollars are expected to flow towards producers, growers, cultivators, distributors and processors. And that means lots of ancillary business like media operations, legal services and greenhouse builders, to name a few, are going to get an influx of revenue.

Canada is one country where the growth of this industry is happening at a very rapid clip, compared to the rest of the world. United Greeneries, a subsidiary of Harvest One Cannabis Inc., is set to complete its licensing for a Saskatchewan facility to process cannabis leaf and expects the facility to be open in the next year. The funding is internal. So the prospects for that company looks very good.

Beyond the typical ancillary businesses mentioned above, foodservice and restaurants in legal weed states stand to make more money with this wave. It may be easy to make fast food jokes about hungry stoners, but there is also an opportunity for middle market restaurant companies to begin making inroads into stores that sell THC-laced food and drink. That market knows almost no limit, because you can seperate the benefits of cannabis from the issues related to smoking it in its traditional form.

And even though the comedians will get mileage out of the fast food material, the companies are paying attention. Quick service restaurants across legal weed states know that their market may include customers under the influence of marijuana. Munchie Meals at Jack in the Box and Wake and Bake breakfast sandwiches at Carl’s Jr and Hardee’s are just the beginning of restaurants moving on on this territory in an overt marketing move.

A Canadian company named Isodiol International recently announced a partnership with California brand Pot-O-Coffee to produce products. Isodiol is a bioactive phytoceutical company that has been developing nutraceutical products for a long time. And California’s recent leap onto the legal weed bandwagon make this a real positive partnership that investors can keep an eye on.

Risk management is important in whatever trading or investing jaunt you are on at any time, but especially so when it comes to marijuana stocks. That is because the US government could technically go after some of these legal weed companies, if the political winds blow another way. That contributes to the volatility in the marijuana sector, which is good for day traders and something for long term investors to sit back and ignore. That is most likely the ultimate lesson of these early days of legal cannabis.

0 Flares Facebook 0 Twitter 0 Google+ 0 LinkedIn 0 Filament.io 0 Flares ×

Previous post: