Investing in Marijuana: 3 Stocks to Watch

While the United States continues its confusing and drawn-out process of marijuana-legalization on the state level, Canada became the first industrialized country to legalize recreational weed on October 17th, 2018.

This is great for those who partake in enjoying marijuana, as well as those money-minded folks who could be looking for higher returns in their portfolio.

Sorry… couldn’t help myself.

The cannabis industry is popular and there’s no reason to believe that won’t continue as it becomes more broadly legalized for medical and recreational purposes.

Put simply, there’s money to be made here, people!

Top Marijuana Stocks to Watch in 2019:

Canopy Growth (CGC):

As of May 2018, Canopy Growth became the first cannabis-producing company to be listed on the New York Stock Exchange. CGC grows and sells medicinal and recreational marijuana, with hemps, gels, concentrates, and high-quality oils included in the product line.

Canopy Growth has gained significant investment from Constellation Brands, which is an international producer/marketer of beer, wine and spirits. Constellation is the #3 beer company in the U.S..

Canopy Growth has ten licensed cannabis production sites (over 4.3 million square feet) and is building scale in more than 30 countries. Already a monster in the cannabis industry, CGC is an exciting company to watch moving forward.

Aurora Cannabis (ACB)

Strictly focused on medical marijuana, Aurora Cannabis is a Canadian-licensed cannabis producer with eight production facilities that take up 92,000 square feet. They operate in 18 countries and have 1.1 million square feet of greenhouses in the works.

While the recreational industry has higher demand, medical marijuana has higher margins and less elastic pricing. ACB already has a leg up on its competitors and stands to strengthen its position in the future.

Cronos Group (CRON)

In 2018, Cronos Group sold 45% of the company to Altria, a major player in the tobacco industry. This gave the company $1.8 billion to access supply-chain, branding and regulatory expertise.

The Ontario-based company makes most of its money by selling medical marijuana in Canada, but they’re focused on expanding their operations strategically throughout the globe. For example, they have a 5-year exclusive distribution agreement with G. Pohl- Boskamp, allowing them to distribute product through 12,000 pharmacies in Germany.

Cannabis is an Industry Worth Watching

Legal marijuana is making its way into communities and financial markets. Because its a young industry, there’s volatility to be expected. On the bright side, there’s plenty of opportunity to make sound investments and improve your financial outlook.

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All opinions expressed on this blog are solely those of Home at 30 and are in no way affiliated with any other organization or institution. The purpose of this blog is to give general education and information about investing, wealth, careers, and college; It is not intended to be professional advice.

Author: Josh Ramos

Josh attended Wake Forest University and paid a fortune for it. Since then, he’s realized the obstacles that Americans face in moving up on the ladder of wealth. By founding Home at 30, he wants to help students learn the skills necessary for taking the next step on their journey to building wealth.
Investing in Marijuana: 3 Stocks to Watch was last modified: July 17th, 2019 by Josh Ramos

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