Full Answer
What are the best cannabis stocks to buy?
Small-cap biotech stocks can give you a wild ride. This biotech company’s goal is better pain management, offering a quality of cannabis and CBD that advocates swear by. • Tilray ( TLRY ). While making several other top pot stock lists, Tilray has recently been downgraded by several analysts and returns have been flat.
Is this the key to profiting off the coming marijuana boom?
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom. And make no mistake – it is coming. To the tune of an estimated $50 billion.
Should you consider investing in Scotts cannabis stocks?
With a P/E ratio around 15.7 and a 1.7% dividend yield, Scotts stands as a respectable choice for investors exploring cannabis in their portfolios. • Innovative Industrial Properties Inc. ( IIPR ).
Should you invest in the $50 billion cannabis industry?
And since experts have projected the U.S. industry to skyrocket to $50 billion by 2026, it’s time for investors to start paying attention. Because whether or not you’re planning on ingesting any THC, you can’t deny the monumental investing opportunity that a potentially $50 billion industry represents. But it’s also a relatively new industry.
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This company can help you cash in on the global marijuana boom
The cannabis industry is expanding at a torrid clip. Investment bank Cowen expects global cannabis sales to grow to $75 billion by 2030, while Bank of America analysts believe the marijuana market could one day generate $166 billion in annual sales.
Industry-leading scale
Aurora Cannabis' peak production capacity is unmatched. Aurora is on track to produce more than 625,000 kilograms of cannabis annually by 2020. Among rival producers, only Canopy Growth ( CGC -6.30% ) appears to be on track to produce at least 500,000 kilograms during this time.
NASDAQ: ACB
Aurora's superior production capacity should provide it with powerful scale advantages over its smaller competitors. By spreading its costs over a larger sales base, Aurora should be able to produce industry-leading profit margins over time.
A strong international presence
In addition to peak production potential, Aurora Cannabis also leads the industry in terms of its operational presence in markets outside Canada. Aurora has a presence in 25 countries. Its closest competitor, Canopy Growth, has operations in only 16 countries.
Independence equals greater potential for long-term gains
Aurora is also the most likely of the major cannabis producers to remain independent.
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Best marijuana stocks in 2022
Green Thumb Industries ( OTC:GTBIF )owns retail cannabis stores in 12 states across the U.S. and operates 13 manufacturing facilities. Green Thumb holds licenses for 96 retail cannabis locations but has opened only a little over half that many stores.
A brief overview of the marijuana industry
First, let’s cover some of the basics you need to know before investing in marijuana stocks:
Impact of COVID-19 on marijuana stocks
The COVID-19 pandemic has affected nearly every part of the global economy, including the cannabis industry. In many U.S. states, cannabis dispensaries were designated as essential businesses.
But, Really, Should I Buy Marijuana Stocks?
Just because there's a trendy new sector with lots of press and potential growth doesn't mean you need to invest in it. If you buy broad-based index funds, you're covered no matter which sectors of the stock market do well. Conservative investors who prefer lower risk are likely better off avoiding investing in marijuana stocks.
Recent articles
These companies are built to flourish in a market void of federal legalization.
The Guys Behind The Motley Fool
As we already mentioned in the beginning, the Motley Fool was founded all the way back in 1993 by brothers David and Tom Gardner. According to their website, they have helped millions of people attain financial freedom through their website, podcasts, books, radio show, newspaper columns, and premium investing services.
The Cannabis Market
The Motley Fool is teasing a company in the marijuana and cannabis markets, which have increased massively in the past couple of years, becoming an oasis for short-term investors and speculative stocks alike.
Legalization Boom Stock Revealed
The o ne stock for the legalization boom being teased is similar to another one alluded to almost two years ago, at the beginning of the marijuana market boom. However, there was enough information provided in the newsletter to help lead us to a solid, yet unconventional conclusion.
Is Shopify A Buy?
For a company that earns around $1.5 billion yearly from e-commerce transactions and software solutions, increasing its revenues by $10 or even $20 million from marijuana-related sales won’t have a material impact on its business over the short-term.
Recap & Conclusion
The Motley Fool pitches its latest pick, “One Stock for the Legalization Boom” by trying to make you subscribe to the company’s annual newsletter for $99. For this money, you will receive a monthly report and a stock investment opportunity but no other bonus reports or tips.
Theodor
Theodor is an old school value guy, when he's not looking for great companies and great prices you can find him on the basketball court hooping.
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Choosing the right online broker is one of the most challenging decisions you’ll make as an investor. We spent six months testing 21 of the leading online brokers to identify the best of the best.
The Rest: SPACs and More
Are there other ways to invest in cannabis? Sure. However, the rewards might fail to outweigh the risks with these options.
The Bottom Line on Cannabis Stocks
Depending on your personal preference and portfolio needs, there are a wide variety of ways to test cannabis-related holdings in your portfolio. With all emerging industries, investors should be aware of the risks and have an asset allocation and diversification strategy to help absorb inevitable sector volatility.
Some Clues
Luckily, most investment teasers, although very vague, usually provide enough hints and clues so that we are able to find out what stocks they are teasing without buying into whatever they are promoting - and this is no exception.
Their Stock Pick Exposed
This might sound strange at first, but what they are teasing here is Shopify (NYSE: SHOP), which is an ecommerce platform used to create online stores to sell products/services online. Some large companies that sell over their platform include Red Bull, Tesla, Sephora, Nestle and many more.
A Good Investment?
Buying SHOP as a marijuana play could be a good investment, but it's hard to say how much of an impact the growth of marijuana will actually have on the stock price - and likely not all that much.
Quick Recap
Anders is the founder and chief editor of Green Bull Research. When he's not investigating new opportunities and adding to his portfolio, you might find him taking a nature walk or reading a Steven Pressfield novel.
Industry-Leading Scale
A Strong International Presence
- In addition to peak production potential, Aurora Cannabis also leads the industry in terms of its operational presence in markets outside Canada. Aurora has a presence in 25 countries. Its closest competitor, Canopy Growth, has operations in only 16 countries. As such, Aurora has a leg up on the competition when it comes to grabbing global market share, particularly in the medica…
Independence Equals Greater Potential For Long-Term Gains
- Aurora is also the most likely of the major cannabis producers to remain independent. Unlike peers Canopy Growth and Cronos Group (CRON2.98%), which sold equity stakes in their businesses to Constellation Brands (STZ0.85%) and Altria (MO-0.15%) for $4 billion and $1.8 billion, respectively, Aurora has so far resisted selling a sizable equity stake ...