Here's 1 Area Where Aurora Cannabis Absolutely Trounces Canopy Growth
It's really no contest.
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.
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.
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 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.
It's really no contest.
A low share price doesn't equate to a bargain.
These high-growth industry leaders may be unstoppable.
Shares of the popular Canadian industry leader have plummeted 90% in the past 12 months.
The struggling marijuana company just didn't need any more bad news this month.
Robinhood investors are buying into some exciting industries -- but they're riding the coattails of some awful companies.
The company is supplying the product for a series of studies being conducted in Australia.
Is there any hope for shares of the beleaguered pot producer?
November could be a big month for the cannabis industry.
It's been a rough September for these two stocks.
These cannabis stocks are ready to show investors the green.
The answer isn't as clearcut as you might think.
It's a battle between the No. 1 and No. 2 Canadian cannabis producers.
Both cannabis operators have achieved tremendous success, but one seems to have an edge in the coming years.
These extremely popular and polarizing stocks should be surrounded by yellow caution tape.
Its partnership with tobacco giant Altria is appealing, but keep an eye on these three issues before you pick this pot stock.
Concerned about an extended bear market? These three stocks are resilient to downturns and primed for growth.
For Robinhood members, these fast-growing stocks are off-limits.
The most likely reason: poor financial results from a top rival.
Aurora's dismal fourth-quarter earnings are weighing on its stock today.