Is It Time To Invest in Marijuana Stocks?
On Wednesday, Oct. 17, 2018, Canada became the first Industrialized nation to legalize recreational pot. In fact, Uruguay is the only other nation to do so.
On Wednesday, Oct. 17, 2018, Canada became the first Industrialized nation to legalize recreational pot. In fact, Uruguay is the only other nation to do so. Almost every most major Universities in The United States has, over the past ten, fifteen years funded research into the health benefits of marijuana. Even the government, as quiet as it is kept, has been party to some kind of similar research. Whether Marijuana holds some kind of medical benefit has been a question of discussion of many years.
Of course the 80's "War on drugs" would cause support of this kind of research to waver. All of a sudden, the use of Marijuana was considered a serious legal offense, causing almost all research facilities to halt studies into the plant. Some "off the books" research did continue, however, some, leading to harsh jail sentences for the parties involved.
Recently, with the "Legalize" movement picking up steam and the feds loosening restrictions on the study of Marijuana, scientists and medical doctors – as well as their own patients and groups dedicated to legalizing marijuana for medical use – have made headway, and now marijuana use is officially sanctioned in many jurisdictions.
In States like California and Colorado, for example, it is possible to obtain prescriptions to use it for medical purposes. Many who use this medicinal pot claim that it works well for the treatment of chronic pain, treatment of glaucoma, and other chronic illnesses. Because of the increase in popularity of marijuana as a medical drug, many companies are hoping to profit from this drug, by growing, distributing, or otherwise providing marijuana to consumers who need it as a prescription medication.
Pharmaceutical giant Bayer – known mostly for its household name aspirin products – for example, recently signed licensing agreements with a small biotech company in the United Kingdom that specializes in the efficient delivery of the active ingredient in marijuana. By providing this active chemical component in an aerosol spray, the company hopes to attract those users who are worried about the negative effects of smoking pot.
Other big Pharma players are also looking into other delivery methods of Marijuana in the medical space. Heavy investments are being made into Marijuana, in all areas, in anticipation of across the board legalization of the plant in the U.S.
Theoretically, one can stand to make a killing down the line by buying stock in some of the larger drug companies who stand to benefit once legalization becomes a reality. But because the drugs are not yet profitable – at least to those selling them legally – many investors who put money into backing companies that are primarily in the marijuana business may not see earnings for some time.
Another approach is to buy up the stocks of the players that are already seeing increased earnings by selling medical Marijuana and other related services and products. I am talking about companies like Aurora Cannabis Inc. NYSE:ACB and KushCo Holdings NASDAQOTH:KSHB. If marijuana research convinces legislators to allow it to be sold like ordinary medicine, these companies will surely see increased sales.
They may get their market share of the business by packaging and distributing pot, by coming up with new medical applications based on it, or by growing the raw product and converting it into usable prescription drugs. Until then, if you have invested in these companies in order to take advantage of the profits that might come from marijuana, you don’t have to simply sit and wait for the future.
By investing in solid, profitable companies, you will benefit immediately. And if the future is bright for medical pot, you’ll be positioned to take full advantage of the new and revolutionary products.