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This article will help you learn how to invest in marijuana stocks and be successful. Before you get too excited like a kid in a candy store, let me go over some things first. First of all, the marijuana industry is still pretty new, and it’s very volatile right now because so few marijuana companies have come out and said they’re going to play ball with this industry. Second, until the United States legalizes this drug, there is no telling what regulations these companies will have to follow or what the taxes on them might be. And lastly, there is no telling what the FDA and other authorities will have to say about this whole industry and the products these companies are making.
While I think there is a lot of money to be made in investing in marijuana-related companies right now (in particular, in 2014), I just want to make sure you know what you’re getting yourself into. First, as stated above, it will likely be some time before we see any legalization outside Colorado. And, when that does happen, who knows how they’ll regulate or tax these businesses. But let’s move on to how you can start investing in this hot new commodity: marijuana stocks.
Are Marijuana Companies Stocks a Viable Investment Opportunity?
I have been reading many articles, blogs, and other items on investing in marijuana companies stocks, and some people have been doing quite well. Before you decide to plunge into the stock market, I recommend doing your research (just like I did). Here are a few things to consider before stepping into this industry. Experts are saying that the demand for marijuana will boom when legalization occurs, and a few experts say it’s already happening. And, if you believe some people’s claims, marijuana stocks will skyrocket. You should take this information and do your research first!
You need to decide if this is something you want to invest your hard-earned cash in. The fluctuation in the value of these stocks could be great news or bad news, depending on how you look at it, or it might not matter at all to you whether the stock goes up or down in value over time. It will also matter what state you live in. If you’re in a state that has already legalized it, then investing in marijuana stocks might be a good idea for you.
How Can I Invest In Marijuana Stocks?
These marijuana companies have been very quiet about who they’ve sold their products to, and there is no actual listing of products anywhere online as far as I could find. So, you have to do your research if you’re going to be putting any money into these companies. And depending on which state you live in and whether or not that state has already legalized marijuana, it could be a big risk. Also, these stocks are not regulated means that you don’t even know how much money the company is making or what its yearly expenses might be (these are important things to know when considering an investment).
A few marijuana companies, such as GrowLife and BioTrackTHC, have publicly stated that their products are for health, pain and other medicinal needs. You might want to look at these companies to invest in marijuana stocks. So far, about 50 companies in the United States are moving forward with this idea. So it’s up to you whether you think it’s a good idea. I would be extremely careful with this investment opportunity.
What is the Market Value of Marijuana Stocks?
Right now, there aren’t many marijuana stocks for investors to buy. So you’ll need to research and determine how much a piece of this industry might be worth. When it comes to the current value of marijuana stocks, or what’s happening with these marijuana companies right now, and whether or not it will hurt their bottom line, people are saying that investors can expect big things. And that generally stems from states continuing to legalize this drug, so more people will buy marijuana.
When the first company came out and said they would sell their marijuana products and make money, the public took notice. And that’s when some marijuana stocks began to jump up in value. But, since then, most companies that have come out with their plan have dropped in value quite a bit. So, this might be something you want to look into before you invest a lot of money in it.
How Do I Buy Marijuana Stocks?
That’s an easy one, like buying any other stock for investment purposes: through your online broker or financial advisor. The real question is what online broker or financial advisor will have them, and then you’ll need to decide if it’s worth the risk. Some of these online brokers might have marijuana stocks when you read this article.
Before you pull the trigger on any type of investment, ensure the company is well established, has a stellar reputation, and pays its taxes regularly. You should be in good hands if they do all those things.
Here Are Some of The Best Marijuana Stocks Under $10
1. Medical Marijuana Inc. (MJNA)
This company received an announcement in 2013 saying they would sell their products in Washington. This is one of the main reasons why the value of this stock has jumped significantly over the last few years. They already have deals with other states, such as Colorado and California, so this investment could be good.
2. GrowLife Holdings (PHOT)
Here’s another one of my favourite marijuana stocks that I think you should consider; these guys have been around for a long time and have quite a few investors. Another reason to invest in this company is that it is already doing fairly well in the states where they’re currently located. They also have a product that helps cancer patients, which some see as an advantage for medical marijuana marijuana companies.
3. BioTrackTHC (BTCM)
This publicly traded company is already legally selling its products on the stock market, so you could start investing in marijuana stocks today! These guys are doing pretty well with their sales (for now). They’ve already made a name for themselves in the industry, and you won’t be disappointed if you decide to invest in their company.
4. Medical Marijuana Inc (MJNA)
This company is legally selling marijuana but isn’t doing all that great yet. They had to restate some of their earnings because of some errors in the past, which has caused the shares of this stock to drop significantly over the last couple of years, but these guys are still around, and they’re moving forward with their business plan. Their best-selling product is “Real Scientific Hemp Oil,” which they sell as a dietary supplement.
5. Cannabis Science (CBIS)
So far, no one has figured out exactly how this company makes money, but that doesn’t seem to keep many from investing in the stock. This company is doing fairly well by itself, but they have a lot of investors who have jumped on board since there are already regulations for their business in multiple states. If you think it’s something you’d like to invest in, it might be worth looking into.
The biggest issue with marijuana stocks is that the government does not regulate them. Therefore they can’t be monitored to ensure they’re doing everything right, which means that the marijuana companies are responsible for their taxes and other expenses. There are no legal requirements, or there aren’t many of them, at least, to follow what the marijuana companies are doing.
If any of these companies make many mistakes concerning handling their earnings or paying their taxes, it might greatly affect your investment. This is why it’s important to research any company you’re considering investing in, regardless of whether you’re thinking about putting money into marijuana stocks or not.