Hemp and Medical Marijuana, or “Pot” stocks as they are affectionately named, have been one of the most talked about subjects this year.
In fact, some of these stocks have seen gains of up to 200% almost overnight, with some as high as 1,700% in the short-term.
And who says you can’t make great money in Penny Stocks? We’ll save that discussion for another article…
But, back to the Hemp and Medical Marijuana craze.
As with any hot topic, hot tip, hot stock, or hot anything that skyrockets and shows that we live in a dynamic world where things change rapidly sometimes good and sometimes not so good, and challenges an old way of thinking, there are always the gloom and doomers who climb out of the woodwork just to throw cold water on the party and make their claim that they, and they alone, have all the answers.
They claim to know everything about the market, have seen this before, wouldn’t invest in these stocks, and of course try to scare everyone away as they just have to be “right” all the time. You’d think they’d all be billionaires but usually, they are just naysayers or journalists.
On the other hand, there are the proponents of Hemp and Medical Marijuana stocks who think that every single stock that even remotely has anything to do with Medical Marijuana will blast off and create huge profits no matter what.
So, who’s right and how can you find the right companies to invest in whether short or long term?
It all started in November 2012 when the states of Colorado and Washington approved legislation to legalize both the medical and recreational use of marijuana.
“In the last year, the rise of the cannabis industry went from an interesting cocktail conversation to being taken seriously as the fastest growing industry in America,” Troy Dayton, CEO of The ArcView Group.
Dayton of the Arc View Group, publisher of the third edition of the State of Legal Marijuana Markets, said in the executive summary of the report. “At this point, it’s hard to imagine that any serious businessperson who is paying attention hasn’t spent some time thinking about the possibilities in this market.”
The report projects a marijuana industry that could be more valuable than the entire organic food industry — that is if the legalization trend continues to the point that all 50 states legalize recreational marijuana.
The total market value of all states legalizing marijuana would top $36.8 billion — more than $3 billion larger than the organic food industry.
“These are exciting times,” Dayton said in the executive summary, “and new millionaires and possibly billionaires are about to be made, while simultaneously society will become safer and freer.”
At present, there are 26 states and the District of Columbia that have legalized Marijuana in some form. Three additional states will soon join them after passing Measures on the November ballot legalizing the use of medical marijuana.
Seven states and the District of Columbia have adopted more expansive laws legalizing marijuana for recreational use. In November, California, Massachusetts and Nevada all passed measures legalizing recreational marijuana.
California’s Proposition 64 measure allows adults 21 and older, to now possess up to one ounce of marijuana and grow up to six plants in their homes. And the stock world is getting a taste of what legal marijuana and its ancillary businesses can generate… and the market loves it.
Many, many individuals have profited from these stocks with numerous days closing with near 100% gains. That’s just a fact and it’s undeniable.
Here are a few more facts:
- Marijuana and Hemp are the largest cash crop in the world, even before any legalization took place.
- There is a huge demand for Hemp and Medical Marijuana that is almost insatiable.
- The Hemp and medical marijuana industry is still virtually an untapped market… with lots of room for new and innovative companies that could produce huge gains for investors.
So, it’s an undeniable fact that many Pot stocks have done incredibly well this year and that many investors have profited greatly, and very quickly. Regardless of what some pundits may say.
The question now is which of these companies have the best potential to stick around and continue to offer these opportunities and payoffs?