Marijuana Dispensary-Related Stocks as the Cannabis Industry Explodes

How fast is the marijuana dispensary industry growing?

There are some pretty grandiose growth rate projections put on the cannabis industry in the short-term future. According to Arcview Market Research and BDS Analytics, the legal marijuana market is expected to grow 230% to $32 billion in 2020. That is a pretty big jump in growth from 2017 where the legal cannabis market reached $9.5 billion. In fact, the legal marijuana market has reached $6.6 billion in the first 10 months of 2018.

We are surrounded by countries that have legalized recreational weed!

As of October 2018, our neighbor to the north, Canada, has legalized recreational marijuana sales. Our neighbor to the south, Mexico, has legalized cannabis for non-commercial recreational use also in October of 2018 ironically. Even more ironic is that our federal capital, Washington DC, has legalized the possession of recreational marijuana four years ago with the passage of Initiative 71; they did put restrictions for the sale of recreational weed in exchange for money, goods, or services.

Why does the U.S. federal government view medical marijuana?

Here we are stuck in the middle with our antiquated federal Controlled Substances Act which has Cannabis scheduled as a Schedule 1. Schedule 1 means that the United States federal government feels that there is absolutely NO medicinal value in marijuana whatsoever from a federal standpoint. The legislation regarding weed in this country is completely messed up considering that 10 states and the District of Columbia and Washington have voted to legalize recreational marijuana. Well over half of the United States (33 states to be exact) have legalized medical marijuana use in some way.

So that being said, the cannabis industry represents big money and is already being traded on major stock markets. There are a couple of Canadian marijuana stocks to look for in the future. Canada has way less legal obstacles and social stigma than the United States does with regards to the marijuana legality issues.

Why was the start of 2018 bad news for state-legal cannabis?

In fact, the legal status of marijuana in United States became even less clear in 2018. Starting in January of 2018, Attorney General – Jeff Sessions rescinded the Cole memo which prevented law enforcement from interfering with state legal cannabis operations. President Trump has even gone back and forth with his stance on recreational marijuana calling it “bad” in 2015 but then pledging to help a Colorado pro-cannabis senator to fix legislative issues regarding cannabis.

Why is it difficult for cannabis industry stocks to be listed on major U.S. stock exchanges?

Anyway the major reason you will not see too many marijuana stocks listed on the U.S. stock exchanges is due to the legislative environment. Cannabis companies have difficulty listing their stocks on major U.S. stock exchanges. This will probably be the case until marijuana becomes federally legal and banking restrictions on cannabis sales would be lifted. When that happens, I am anticipating that the alcohol and tobacco industry will plunge headfirst into the marijuana industry.

Who is MedMen and why are they one of the leading cannabis dispensary stocks?

One such example of a U.S marijuana company going to Canada to get listed is a California-based company called MedMen (NASDAQ: MMNFF). They that went up north to Canada to get listed as a marijuana stock earlier but now are listed on the NASDAQ. This company is a cannabis retailer and they want to be the Starbucks of the recreational and medical marijuana dispensaries. This cannabis dispensary stock has retail dispensaries in a few states: California Arizona Nevada and New York. This cannabis dispensary stock is also planning on opening more medical and recreational weed dispensaries in 5 other states that allow recreational marijuana starting in 2019.

Are there risks investing in OTC marijuana stocks?

For right now, a lot of the American marijuana stocks that are listed on the U.S. stock exchanges are usually trading in OTC (Over The Counter) markets as penny stocks. There are some risks with OTC stocks. The major risk is that there are less requirements to be listed and companies that are listed on OTC markets. These OTC stocks do not have the same stringent filing and disclosure requirements that are required by the SEC when a stock is traded on the NYSE or NASDAQ. With that being said, keep in mind that just because a cannabis stock that is trading in an OTC market may not necessarily mean it’s a sketchy stock. It just means these cannabis-related stocks can’t be listed on major exchanges in the U.S. yet.

The owners of Corona want to supply cannabis dispensaries with their cannabis beverages!

Another sign that the cannabis industry is super-hot is the fact that merger and acquisition activity is pretty much at an all-time high compared to other industries. There is a massive deal going down in the weed industry, the biggest deal yet. Constellation Brands is putting a whopping $4 billion investment into Canopy Growth Corp. Canopy Growth is a Canadian cannabis producer and Constellation Brands is an alcohol beverage conglomerate that owns Corona beer and other brands. This is not surprising considering that other brands like Heineken are also searching to get into the legal marijuana market with their beverages as well.

What are some weed stocks that will be supplying marijuana dispensaries?

Here is a list of some marijuana stocks to look out for in the future. I won’t be surprised if you find the products that these weed stocks represent in a medical or recreational dispensary near me.

Canopy Growth was really one of the first Canadian marijuana stocks and it has been a gem of a stock so far. It is currently the world’s largest publicly traded cannabis company. They produce and market various medical and recreational cannabis strains to consumers including “Tweed”. “Tweed” was one of the company’s most popular marijuana brands being marketed by cannabis connoisseur and rapper, Snoop Dogg. Since the huge investment with Constellation Brands, this deal helps this duo create brand new cannabis infused beverages that I may find in a dispensary near me soon..

Canopy Growth Corp. (CGC): Market Cap: $6.29B

Average Volume: 1,984,482
Market Cap: $5.98B
P/E Ratio (TTM): N/A
EPS (TTM): -$0.0950

Source: Investopedia.com

Aurora Cannabis Inc. (OTC: ACBFF): Market Cap $4.08B

This is another huge Canadian marijuana stock and they are called Aurora Cannabis. They have even become bigger this year in March of 2018 since they acquired MedReleaf, making that the largest marijuana deal in the world at that time. Together, these two companies are expected to cultivate over 570000 kg of cannabis annually.
Average Volume: 1,857,787
Market Cap: $4.101B
P/E Ratio (TTM): N/A
EPS (TTM): -$0.03

Source: Investopedia.com

Another huge cannabis dispensary stock is Curaleaf Holdings (LDVTF). This marijuana company has 33 branded marijuana dispensaries spread out in a dozen states. They are the largest publicly traded medical and recreational cannabis dispensary stock in the United States.

Terra Tech Corp (OTC: TRTC): Market Cap $157M

This marijuana stock is both a cannabis producer and runs quite a few weed dispensaries on the retail side. They also produce hydroponic equipment for cultivating marijuana. They have a retail distribution channel of medical marijuana under the brand name Blum. This cannabis stock has Blum-branded marijuana dispensaries all over Nevada and two massive weed cultivation facilities in that state.

Average Volume: 582,379
Market Cap: $148.829M
P/E Ratio (TTM): N/A
EPS (TTM): -$0.05

Source: Investopedia.com

mCig Inc. (OTC:MCIG): Market Cap $121.8M

This marijuana stock is a little different due to the fact they are a holding company. Their portfolio includes cannabis cultivation, recreational and medical marijuana dispensaries; consulting, and even product lines such a vaporizers. They’re also big construction company in the marijuana industry in that they design and build cannabis dispensaries and cultivation facilities.

As mentioned before, there two major beverage players that are getting into the cannabis industry already. They are beverage conglomerates Constellation Brands and Heineken. There will be others including from the tobacco industry as our nation’s popularity for cannabis increases.

Where is the cannabis industry going if it becomes federally legal for recreational purposes?

In fact, my belief is fortified from a Moody’s report this year that mentioned how alcohol and tobacco sales could suffer because of growing legal cannabis sales. That is why so many players from the industries or just waiting to jump in on the legal cannabis sales wave. Here is a direct quote from the Moody’s report as followed:

“As marijuana is legalized, it could replace alcoholic beverages on some drinking occasions, but also be used to formulate new beverages. At a time when cigarette smoking is on the decline, we expect that US tobacco companies will enter the US marijuana market, but only if marijuana becomes federally legal,”

There is really good chance that Coca Cola and CBD-water infused brands will follow suit and find clever ways to infuse marijuana into their beverages for separate product lines that cater to stoners. Look for CBD-infused stocks and these two beverage stocks in the news as they maneuver into the recreational marijuana bandwagon.

Constellation Brands(STZ): Market Cap $44.26B

Heineken N.V.: Market Cap $57.36B

I’m sure these beverage giants will be competing with other cannabis-infused and CBD-infused beverages. Aurora Cannabis is going to come out with. I will be curious to see what cannabis-infused beverages start hitting the shelves in marijuana dispensaries in California.

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