Invest in the Legal Marijuana?
Now is the time to plan. The legalized marijuana investment opportunity is like the start of the beer and liquor companies when prohibition ended. Think about this; what would shares be worth in a beer/liquor company if you would have purchased them 80 years ago.
Time goes fast and already, the marijuana investment opportunities have grown faster than a nugget from a nice Cheese Surprise strain grown in a professional weed operation.
Of course Mark Twain would recommend selling soil mix, pots, lights and nutrients (and he would be correct) but there are many other ways for the astute investor to cash in on this relatively new industry, legalized marijuana.
Federal law prohibits the sale or possession of weed, but many states, 18 as of this writing (plus Washington, D.C.) allow its citizens to use it to help alleviate the distress from many illnesses like multiple sclerosis and epilepsy and also helps cancer patients get through the nauseating experience of chemo therapy.
Two states allow the use of weed just to get high, Washington and Colorado and there are many with ongoing discussions figuring out how far they want to go as far as the legalization of marijuana goes.
With the preliminary tax numbers being publicized from Colorado being off the charts, it won’t be long before the other legislatures in the remaining states legalize it one way or another so they too can cash in on the tax windfall Colorado and soon to be Washington are getting. States get money from licensing as well as sales tax etc… So it won’t be long. Politicians love new revenue they can blow.
The industry on the whole is estimated to be in the $2 billion gross sale range in 2014 employing thousands of people and the actual reach of this industry hasn’t even been calculated yet. Every industry from plastics to how to books will benefit and as more of the unemployed start working, states will be fighting over new companies looking set up shop in a legal and tax friendly state.
Other industries that will join the boom include insurance, legal, accounting, medical, advertising and using equipment like bongs, pipes etc… as well as the niches everyone thinks of at first; marijuana, pots, lights, soil etc…
Of course an investor can actually grow or sell pot but for the ones who want to reap the harvest but stay on the sidelines, there are a few small cap stocks to consider.
NOTE: THIS IS NOT INVESTMENT ADVICE. YOU MUST DO YOUR OWN RESEARCH BEFORE INVESTING
DOUBLE NOTE: Watch out for over-the-counter stuff. Most lose their shirts!! Beware.
Medbox; OTN:MDBX has patented dispensing machines being used by the licensed dispensaries. They have fingerprint technology that allows the machine to verify the patient with their finger print. These machines can easily be adapted for use in any ordinary licensed store.
Steep Hill is another company poised for growth. They test medical marijuana for contamination and are presently seeking investors as more and more growers seek to have certifications with their product.
Cannabis Science, OTN:CBIS, is creating marijuana-based medicines to for patients with HIV/Aids and cancer.
Medical Marijuana OTN:MJNA, is a company that makes marijuana infused food such as ice cream and candy, one of the fastest growing segments of the industry.
Ploom is a company that makes vaporizers, a different way to smoke pot. There are others and they all are trying to come up with the best portable vaporizer. That is a hole that will be filled and when it does, the sales from the one or two best vaporizers will be utterly huge.
GW Pharmaceuticals OTN: GWPRF, sells a product called Sativex. It’s a mouth spray that helps with the symptoms of multiple sclerosis and late stage cancer pain. GW is seeking FDA approval for this product now.
Investing in this relatively new industry should also be great for retirees and moving at least 10% from one retirement asset like a Roth IRA or an annuity into the marijuana niche should bring great returns for a long time.
Warning; since this is still relatively new, one must be careful and do their due diligence before investing in any company. There will be many useless start-ups trying to take advantage of investors so take the caution that is required to reap the benefits that will come.