
Is Canopy Growth a Buy for Its Pet CBD?
Like most things cannabis-related, time will tell.
The marijuana industry is expected to triple in the next five years -- and many investors are looking to profit.
As states and entire countries decriminalize or legalize cannabis and/or its components, there are loads of opportunities for entrepreneurs and existing companies.
But as in any nascent industry, there are also loads of risks and bad actors. Whether you're a first-time investor or a seasoned veteran, it pays to understand all of the moving parts.
This guide will get you up to speed quickly.
Follow these seven steps if you're thinking about buying cannabis stocks. The following is a summary, but we encourage you to read the entire article linked below for all the details.
1. Understand the types of marijuana products.
2. Know the different types of marijuana stocks.
3. Understand the risks of investing in marijuana stocks.
4. Know what to look for in a marijuana stock.
5. Evaluate the top marijuana stocks and exchange-traded funds (ETFs).
6. Invest carefully.
7. Monitor changing industry dynamics closely.
Read more: How to Invest in Marijuana Stocks (Note: includes a list of every major marijuana stock)
We just went step-by-step through how to invest in cannabis, but just because there's a trendy new sector with lots of press and potential growth doesn't mean you need to put your hard-earned money in it. After all, if you buy broad index funds, you're covered no matter what sector of the stock market does well.
Think through the pros and cons as you read on: Should You Invest in Marijuana Stocks?
One of the biggest variables in cannabis investing is to what extent marijuana will be decriminalized or legalized within the United States, both on a state-by-state basis and on a federal basis.
The link below provides a quick spin through what we've seen so far, from decriminalization efforts starting in 1973 to legalization efforts beginning in earnest in 1996 to the political signs of where we seem to be heading.
Read on: Timeline for Marijuana Legalization in the United States: How the Dominoes Are Falling
There's been tremendous interest in Canadian cannabis stocks, because on October 17, 2018, recreational use of marijuana became legal in Canada (it had been legalized on a medical basis since 2001).
Beyond consumption by Canadians, the upside thesis involves operations or distribution to other countries that have legalized or may legalize marijuana to various extents. This includes Germany and particularly the large market on Canada's southern border.
Read on: Everything You Need to Know About Investing in Canadian Marijuana Stocks
One of the difficulties in understanding the marijuana industry is the jargon. Fortunately, it's not too complicated once you get a handle on a few main terms.
Marijuana vs. cannabis
Cannabis is the scientific name of the plant (the genus that houses three species). For an investor's purposes, marijuana is synonymous with cannabis, as are more informal nicknames like pot, weed, ganja, dope, grass, 420, sticky icky, etc.
CBD vs. THC
Cannabis is made up of nearly 500 chemical constituents, including many dozens of cannabinoids (substances that act on the body's cannabinoid receptors).
The two most commercially relevant of these cannabinoids are delta-9 tetrahydrocannabinol (THC) and cannabidiol (CBD). Only THC is psychoactive (i.e., makes you high).
Hemp
Hemp is a strain of a species of cannabis with relatively low levels of THC and relatively high levels of CBD. It has many industrial uses like providing fibers to make rope and clothing.
Like most things cannabis-related, time will tell.
The company says the funds will be used for activities such as acquisitions and partnerships.
Wall Street has been singing the praises of the medical marijuana company.
The Canadian cannabis company is making plans to raise significantly more capital.
Get ready for a frenzy of acquisitions in the red-hot U.S. cannabis market.
The results have left me second-guessing my own investment.
The soon-to-be No. 1 cannabis producer in the world faces mounting concerns.
Each one offers a different way to tap into the industry's growth potential.
These futuristic stocks can yield solid returns in the coming years.
After missing last year's deadline, lawmakers in New York didn't want to make the same mistake in 2021 and legalized pot in March.
These marijuana stocks should have investors seeing some serious green.
Investors initially reacted negatively to the Canadian cannabis company's quarterly results.
There were multiple culprits behind the cannabis producer's top- and bottom-line deterioration.
Investors shouldn't overlook this smaller deal involving two U.S. cannabis companies.
The company has launched a new value brand. But will it pay off?
The stock market was slightly lower to start the week.
Blame Aphria.
The Canadian cannabis producer turned in a disappointing performance from top to bottom.
Aphria's poor third-quarter performance is weighing on both cannabis stocks.
Sorry, Robinhood investors. These great cannabis stocks are off-limits for now.