With analysts predicting global spending on legal cannabis will grow to £25.8 billion in 2022, the appeal of investing in the industry is arguably higher than it has been in recent years. Ongoing legalisation and increasing business interest have also added to this, with many seeking to capitalise on the evolving landscape of the marijuana industry in unique ways.
While we don’t claim to be experts on pot stock predictions, CDB Business Ltd has compiled a list of some of the best marijuana stocks to watch. These stocks belong to companies pushing the boundaries in the recreational and medical marijuana industry and are sure to have an influence on cannabis prices going forward.
Read more about these exciting stock options below, and contact CBD Business Ltd on 01992 910855 or at firstname.lastname@example.org to find out more about how you can get involved in these and other cannabis investment opportunities.
What Are Marijuana Stocks?
Marijuana stocks refer to the shares of companies involved in the growth, development, and supply of cannabis for either recreational or medical use. They have become viable investments for many looking to grow their trading portfolios, particularly the more stable, blue-chip marijuana companies.
Most marijuana companies are split into one of three broad sectors, including:
- Gowers: These are companies that focus on the cultivation, sale, and distribution of cannabis.
- Weed-Related Biopharmaceutical Firms: These firms focus on the development of the medical marijuana industry and bringing these developments to the market.
- Supply Providers and Agricultural Stocks: These companies provide the tools and materials, necessary to grow marijuana. This equipment includes light systems, pesticides, fertilisers, and more.
The legalisation of marijuana for recreational and medicinal across various countries in recent years has caused a boom in cannabis agricultural stocks, which is predicted to rise in the coming years.
The Best Marijuana Stocks to Watch
Due to the ever-increasing interest around them due to ongoing legalisations, marijuana stocks have experienced significant growth in recent years. Some of the most exciting stocks to watch include:
1. Terra Tech Corp
Terra Tech Corp is a diverse agricultural cannabis company focusing on the production and dispensing of medical marijuana. Their own medical marijuana brand is sold under the name IVXX, while the company carries out its cultivation activities under the name Edible Gardens. It also operates medical marijuana stores throughout the US. Terra Tech Corp is also authorised to cultivate, manufacture, and distribute retail cannabis.
2. Canopy Growth Corp
Canopy Growth Corp is the world’s first and largest publically traded cannabis company, boasting over 500 000m2 of production capabilities at its Ontario headquarters. It produces and markets medical and recreational strains, with one of its most popular brands, Tweed, being associated with rapper Snoop Dogg.
It began trading on the NYSE in 2018, where it became the world’s largest cannabis company based on its market capitalisation of $11.5 billion (£9.4 billion). This followed a significant investment of $4 billion (£3.2 billion) by beverage giant Constellation Brands, owners of Corona and other alcoholic beverage brands, into the company. This investment provides a wide range of collaboration opportunities, including on a line of cannabis-infused beverages.
Canopy Growth Corp also reported a revenue of C$77.9 million (£48.5 million) in its 2019 fiscal year. This revenue, along with the opportunity for new ventures, makes it an exciting option to watch.
3. Cronos Group
The Cronos Group is a Canadian cannabis grower and distributor based in Toronto. Cronos Group also serves several international markets, including Germany, Australia, Israel, and more. Due to the legalisation of recreational cannabis in Canada, they have experienced an increase in market interest, increasing its projected sales figures of up to C$112 million (£69.7 million).
Their share price also increased significantly in late 2018 following interest expressed by Altria Group, the largest tobacco company in America, in acquiring the company. After this interest was reported, Cronos Group’s shares traded in an intraday range of $8.55 (£7.02) to $11.58 (£9.50) on NASDAQ. In 2018, the company generated around $7.3 million (£5.9 million), making it a stock to watch in the coming years.
It is also worth noting that, as legal barriers surrounding cannabis fall, tobacco and alcohol companies are expected to increase their involvement in the marijuana business.
4. Aurora Cannabis Inc
Aurora is another Canada-based cannabis producer with operations in several international locations. The company gained substantial attention after the purchase of CanniMed Therapeutics in 2018, and again in 2019 after its acquisition of MedReleaf in a $250 million (£205.5 million) all-stock deal.
According to a press release issued by Aurora, this acquisition is expected to result in an expected output of 570 000kg of cannabis per year through their facilities in Canada and Denmark. ACB appears to be committed to its continued growth and expansion, making it an exciting option to watch in the future.
5. GrowGeneration Corp
GrowGeneration Corp focuses on the sale of specialised lighting, nutrients, soil, hydroponic supplies, organic gardening supplies, and more. They generated a total of $29 million (£23.8 million) in 2018, and it is hoping to reach $84.6 million (£69.4 million) by 2020.
6. General Cannabis Corp
General Cannabis Group is a Denver based company specialising in providing ancillary services to businesses in the cannabis industry, including consultation, real estate, and business development services. They also own a cannabis lifestyle apparel line under the name Chiefton Supply Co.
7. GW Pharmaceuticals Plc
GW Pharmaceuticals develops specialised cannabinoid medicines to help treat a wide variety of illnesses and their associated symptoms, including Multiple Sclerosis, pain associated with Cancer, childhood Epilepsy, and more.
Along with a subsidiary of Associated British Foods (see below), GW Pharmaceuticals has developed a drug derived from an active marijuana ingredient. This drug, called Epidiolex, which has been approved by the Food and Drug Administration (FDA) of the US to treat seizures associated with certain forms of epilepsy.
The introduction of Epidiolex into the market has the potential to significantly increase the value of GW Pharmaceuticals’ stock, with some analysts estimating sales figures of up to $1 billion (£817.6 million) in the US.
Another pharmaceutical company, AbbVie is the company behind the synthetic cannabis-based drug Marinol. Also approved by the FDA, Marinol is used to alleviate nausea associated with chemotherapy and improve the appetite of AIDS patients.
The fact that Marinol is not the company’s flagship drug or its biggest seller makes this a fantastic opportunity for those looking to invest in the marijuana trend without complete commitment.
9. Associated British Foods
Associated British Foods is a multinational company based in London, and the only company involved in the marijuana industry listed on the London Stock Exchange.
In 2017, British Sugar, a wholly-owned subsidiary of Associated British Foods, began cultivating and supplying a specific variety of cannabis to the pharmaceutical industry as part of a deal with GW Pharmaceuticals. This unique variety of cannabis designed for use in the drug Epidiolex, a cannabidiol oral solution produced by GW Pharmaceuticals.
Due to the diverse nature of Associated British Foods’s business offerings, the influence of this venture on Associated British Foods’s share price is difficult to pinpoint accurately.
Where to Buy Marijuana Stocks
These stocks can be acquired from most major brokers, although their availability may depend on whether they are traded on a major exchange. These major exchanges include the LSE, NYSE, NASDAQ, or CSE. They can also be acquired as over-the-counter stocks.
A brokerage account will be necessary to invest in these stocks, and the assistance of a broker will be beneficial to ensuring the success of your investments. Doing your own in-depth research before selecting any stock or making a purchase is highly recommended, as marijuana stocks can often be challenging to navigate.
Looking to Make An Investment in Marijuana Stocks?
At CBD Business Ltd, we will use our industry insight to provide you with advice on the best brokers for marijuana stocks, as well as any other guidance you may need. Contact us today on 01992 910855 or at email@example.com to see how our team can help you get started on buying your first marijuana shares.
*Disclaimer: CBD Business Ltd accepts no responsibility for any use of the above information, or for any consequences that may result from this use. Any person acting on this information does so at their own risk. No representation or warranty is given with regard to the accuracy and completeness of the above information. Additionally, this information has not been prepared according to the legal requirements designed to promote the independence of investment research, and as such, should be considered to be a marketing communication.