Category: Pot Stocks

  • Get Into Cannabis Investment

    Get Into Cannabis Investment

    Get Into Cannabis InvestmentMore and more countries allow medical and recreational use of marijuana. But the inconsistent set of rules and regulations cause that the companies involved in cannabis have problems.

    Yes, it is time to get into cannabis investment. Despite many problems, volatility or lack of legislation, this industry is still alive.
    It is in better condition now than 10 or 12 months ago. The companies are stronger, they have the market experience, they are developing, new retail stores are opening. Good news is coming from Canada, where in line with the second phase of legalization cannabis derivatives will find their place on the store’s shelves.

    Also, it seems that the US is one step closer to a broader legalization law. 

    For investors, this means it is time to get into cannabis investment. It is always better to invest in the early stage of some company, the stocks are cheaper and speaking about cannabis companies, they are progressing. Their full potential is coming. So, think, maybe right now is time to get into cannabis investment.

    Expect Big Profits

    One more reason why is time to get into cannabis investment is that this industry easy could grow to over 30 billion next year. Try to look at these companies as innovative start-ups but well established. They are covering a broad of sectors: growers, suppliers, pharmaceuticals.

    Their products are for the therapeutic and recreational markets as well. And the appearance in the market is changed. In the early days, these stocks were very cheap (actually they are but it is an advantage) and many companies didn’t survive due to various reasons. But those who did make it are strong and became the publicly traded companies today. 

    Yes, there are notable limitations on how investors can get in the cannabis investment. For example, marijuana is still illegal at the federal level in the US. So, the companies that are dealing with marijuana directly are not traded on the NASDAQ or NYSE. 

    The investors may buy the stocks of companies that are operating in other countries, for example in Canada or giving the service to the business but don’t have any contact with products. You can find that situation in the US.

    Nevertheless, investors’ interest in cannabis stocks is huge. Let the facts to speak. Publicly listed cannabis stocks have large increases in share value, some companies surpassing a billion dollars of market capitalization. 

    Is this the right time to get in the cannabis investment?

     

    Get Into Cannabis Investment

    It’s the typical growth stock puzzle. These companies have grown revenues and earnings. On the other side, they are still developing and expanding which means they are spending a lot on that. Do you have the guts to buy early? 

    Think, is it better to buy now or when the companies receive a new money infusion and the stock price jumps? If you wait for that to happen you will have fewer opportunities for a large profit.

    Just pay attention to how companies define the problems that blocked them to have better results. If they do it with due diligence and clear, without any doubts, it is time to get into cannabis investment. But remember, you have to be patient. Plan your trades correctly and don’t let be influenced by rumors and emotion.

     

    Bottom line

    Despite the fact that it isn’t clear which cannabis stocks will be long-term winners, investors shouldn’t avoid them. Currently, all cannabis stocks are suffering. The whole industry is in problems. And there is one more tricky part. Until the lawmakers and regulators change the attitude toward marijuana there are small possibilities to be different, the industry will have losses and the dark market will grow
    Investing in cannabis needs more regulatory, that’s true.
    Until then, watch the companies, do your homework and examine the stock, buy while they are cheap and wait and take a profit. This is the right time to get into cannabis investment.

     

  • Cannabis Stocks Are Not All Equal For FDA

    Cannabis Stocks Are Not All Equal For FDA

    Cannabis Stocks Are Not All Equal For FDA
    FDA sent numerous warnings about the CBD, substance found in cannabis.
    The stock prices of important cannabis stocks are dropping on a new warning from the FDA.

    By Guy Avtalyon

    Cannabis stocks are under attack. On Tuesday the US Food and Drug Administration (FDA) published new guidance on CBD. FDA notified that CBD can cause liver damage and also, some other injuries might be caused by using CBD.

    This information caused blast to the medical cannabis producers especially among those publicly listed on markets. Those companies have plans, they are investing in development, researching, and have licenses. We are talking about Canadian producers and their investors that were looking for the area for selling cannabis products and the US seemed to be that one. And now FDA issued a statement that their products are not safe for humans. Okay, even if it is true, how FDA can explain that GW Pharmaceutical’s CBD products are safe. This isn’t an attack on GW Pharmaceutical, it’s contrary, why other companies are forbidden to make health claims for its products use. 

    The FDA announced late Monday it is pointing on 15 private companies that are illegally selling products with CBD.
    The regulator said, “there is very limited available information about CBD, including about its effects on the body.”

    What is CBD?

    CBD is a non-intoxicating cannabis compound but it lives in regulations’ vacuum. FDA has approved GW Pharmaceutical’s GWPH drug that contains CBD, a drug for the treatment of childhood epilepsy but, FDA told the other producers that they have no permission to include this ingredient to food or drinks. The reasons are already mentioned.

    “Not so fast,” wrote MKM analyst Bill Kirk. “The FDA’s statement includes some balloon-bursting language,” MarketWatch reported.

    Cannabis stocks were crashed again on Tuesday. That was the signal for analysts to make new estimations and to update the previous.

    Cannabis legalization is slow both in Canada and the US. That causes the black market to grow, while the legal companies are struggling to increase revenue and become profitable. Some of them had to cut selling, cancel the agreements, and save the cash for the following days in expectation for the issue to be solved. 

    But investors have different sentiment and the stock prices of these companies are dropping.

    FDA influences the price of cannabis stocks

    The FDA’s update is in line with a note from the regulator’s former commissioner, Scott Gottlieb. He tweeted: “FDA’s actions on CBD show any available pathway – FDA issuing a regulation, new dietary ingredient notification for supplements, or a food additive petition for human or pet food – will require extensive studies and industry data to address serious safety concerns identified by FDA.”

    Extensive studies? Okay. Is there anything that they are working on? If yes, tell them to hurry up, the health benefit is in question. Tell them to have in mind a relief of pain and mental suffering. How about that?
    And, what they were doing for all the time? Haven’t yet find anything about cannabis? So many studies are already done. 

    The most important cannabis stocks trade in CBD products. Some of them were failing in trading after the FDA’s announcement. Canopy Growth fell by a bit more than 1%, and Tilray was falling by 3%. But they are connected to the section. The worse came for Charlotte’s Web which stock was down by almost 8% and we are speaking about the leader in the CBD market. 

    One stock was especially successful on that day. GW Pharmaceuticals was up. 

    Cannabis Stocks Are Not All Equal For FDA
    (The image was taken on Nov 27.)

    Guess, it has FDA approval for selling the CBD products. GW Pharmaceuticals is a unique one. Yes, their stock price was only slightly up, if the rise of 1.62% is slight. But still.
    The FDA said the next step is to make a framework to allow companies that are producing CBD-based goods to deliver them to the market. Oh, yes, they have to wait for clinical trials. Only after that, the market will be opened to them.
    Until then, investors will sell in panic cannabis stocks or hold them till the better times.

     

  • NuVim Inc – Marijuana Penny Stock Under The Radar

    NuVim Inc – Marijuana Penny Stock Under The Radar

    NuVim Inc - Marijuana Penny Stock Under The Radar

    By Gorica Gligorijevic

    This company has two subsidiaries Stolle Milk Biologics, Inc., NuVim Powder, LLC. and stock price under one dollar

    Maybe you still didn’t notice this stock. But don’t worry, many didn’t. NuVim Inc stock is currently very cheap as penny stocks. It was traded at $0.0133 at the close of trading on October 21. But it is a stock worth looking out.

    Market cap $299,468
    Current price $0,0133

    NuVim Inc is a company from New Jersey. Actually, it was established in 1999 and is based in Lewes, Delaware. It sells vitamins and dietary supplement drinks. Why this particular stock is interesting to watch?

    Well, its current CEO Rick Kundrat was VP at Unilever’s Thomas J. Lipton Inc and managed the merger with Pepsi in 1991. This deserves to be noticed because of the fast-expanding cannabidiol (CBD) market global. Rick Kundrat has talked about a possible merger for NuVim merger partners. If the company moves into CBD-infused drinks it could be huge progress and stocks could be a goldmine.

    Cannabidiol is used for pain reduction. Moreover, it speeds up healing muscles and joints when have been weakened from hard exercise. But maybe the most important effect is in the field of arthritis or similar illnesses where it can help to reduce chronic pain. 

    NuVim, Inc. produces, distributes and sells beverage products

    The NuVim is a dietary supplement accessible in the refrigerated juice sections of elite supermarkets and fitness stores. You can find it in three flavors: chocolate, vanilla, and strawberry.  It helps to sustain the immune system, improves calcium absorption and digestion. NuVim contains a clinically proven natural prebiotic fiber. 

    NuVim INc is a small company with only 3 full-time employees, according to data from Yahoo Finance. From everything we know about this company, it falls into the packaged foods industry. The Company covers a range of user needs, like joint pain, muscle flexibility, wellness, weight control, nutrient supplement, and muscle recovery.

    When we put this company under the phrase “under the radar” we didn’t have its unrecognition among the investors in mind. The lack of information is obvious. It is very hard to find full information about them. The last info came from the short report:

    “During the second quarter of 2019, the company sold 1,000,000 shares of stock to Derek Spence for $10,000.”

    This was really cheap.

    As Traders-Paradise found, Derek R. Spence is Vi3’s CEO and Chairman of the Board. He joined Vi3 as an investor in 2012 and became a board member in 2014.

    Bottom line

    But what we all can see from its 3-months chart is the stock is doing well.
    Yes, it is a very low float stock that is actively seeking and interviewing merger partners. The merger could send this stock very high. Grab this stock while it is cheap and wait for it to grow.
    It isn’t expensive, honestly, it is very cheap. But this company has interesting potential. As support for this opinion, let’s repeat where is its focus. It is cannabidiol that is fast-expanding and becoming part of medicines, supplements, drinks. This company wants success and seeking for partnership telling us a lot. Grab it.

     

  • Will Marijuana Stocks Go Up In Smoke?

    Will Marijuana Stocks Go Up In Smoke?

    Marijuana stocks go up in smoke
    Shares of Aphria (NYSE: APHA), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) dropped by 13.8%, 9.9%, and 12.6%, on Thursday. 

    By Guy Avtalyon

    It was a bad day, will marijuana stocks go up in smoke. All three stocks felt after HEXO declared discouraging preliminary fiscal 2019 last quarter revenue. Its outlook for fiscal 2020 is going to be very bad. How HEXO bad news influenced Aphria, Canopy Growth, and Tilray to big declines?

    HEXO expected to report net revenue between 14.5 million and 16.5 million Canadian dollars on October 24. This result is considerably under the company’s expectations. Moreover, HEXO stated that “uncertainties in the marketplace” caused such bad results and that they expect their expectations for the next fiscal year has to be lessened. That caused investors’ concerns about Canopy Growth, Tilray, and Aphria pot stocks, also.

    The main problem for HEXO is the insufficiency of retail cannabis stores, also the chances of restrictions for some types of cannabis derivative products are the problem. And there are, according to the company’s statement “signs of pricing pressure.” And the other cannabis producers share their worries and have the same problems.

    Almost all of them reported delays in Canadian provinces launching retail cannabis stores. Canopy, Aphria, and Tilray are expecting to Cannabis 2.0 market to make an increase to sales. But those delays may crash their expectations. 

    Aphria is, let’s say that, probably in the best situation because the majority of its revenue comes from Europe, in fact from Germany.

    Aphria had completed its acquisition of CC Pharma GmbH in January this year. CC Pharma GmbH is a leading distributor of pharmaceutical products. That includes medical cannabis. They have more than 13,000 drugstores in Germany and throughout Europe.

    Canopy Growth and Tilray, and HEXO, still rely on Canadian marijuana sales.

    Will marijuana stocks go up in smoke?

    Despite the fact that some of these companies brought profits in some periods, the whole picture is different. Marijuana stocks aren’t profitable yet. It is still hard to estimate which of them will be winners in long-term meaning. So, the best way to handle these stocks is understanding that they are fast-growing, but still, they are not making the money. Pot stocks will not disappear but every investor should know that they are extremely volatile right now. If you want to buy pot stocks you must have a very high-risk tolerance. 

    The greatest risk of buying marijuana stocks is valuations. Share prices more reflect the stocks’ growth hopes. Since marijuana stocks aren’t yet profitable, evaluating the stock price and possible profit is more challenging.

    The risks connected to marijuana stocks are genuine and can’t be neglected. But as we already know, the risks should be compared with the possible profit that marijuana stocks give. 

    The cannabis industry is fast-growing. So, what we can expect is holding these stocks over time, investors will have gains and losses. But isn’t it the same with all stocks?

    Is investing in cannabis stocks risky?

    Investing in marijuana stocks is naturally risky, but some stocks are riskier than others. To avoid losses invest in a company with a wide range of operations, one that sells products in various countries which can be a competitive advantage, for example.

    On the other hand, it isn’t always smart to buy the stock with the lowest volatility today. They can be less volatile today but after a few months, they can be extremely volatile. Negative relationships over some periods can balance positive relationships over some other periods. That will make the overall volatility lower.

    Investors have to be focused on the business prospects of the company like they do it with stocks in any industry. So,  will marijuana stocks go up in smoke? No!

  • How to Invest in Marijuana Stocks?

    How to Invest in Marijuana Stocks?

    Marijuana Stocks and How to Invest
    Here are some tricks and tips on how to invest in marijuana stocks. They are in trend now.

    By Guy Avtalyon

    Marijuana stocks easily can be one of the most interesting industries in the coming decade. The sector is growing with very volatile stocks that can give possibly marvelous trades.  

    This sector is already expanding. But it may explode even more. We already have a lot of listed stocks, but new ones launching IPOs also.

    How to invest in marijuana stocks?

    Let’s be clear on what precisely a marijuana stock is.

    Marijuana stocks are the stocks of companies that are included in the marijuana industry. Such companies are focused on growing, others on selling, and some on researching marijuana. Marijuana stocks you can find under the name pot stocks. Not only producers or merchants businesses are pot stocks. Pot stocks also refer to companies that are servicing firms in the marijuana or cannabis industry, for example, distribution companies. Any company that acquires more than 30% of its income from any business linked with marijuana can be a pot stock.

    Tricks and tips

    The marijuana sector is really hot. So, you have to be aware that it is a volatile industry. This is the reason more to read and watch the news like any other stock. The news is important because that is what makes changes in the market. The truth is that the news can make an enormous turnaround in the market, the prices may jump or drop on news, the stock may be tremendous or useless thanks to the news.

    What you have to do is to watch your favorite marijuana stock tickers. Be very careful with that because some mistakes may appear.

    Is trading marijuana stocks easy

    It’s almost the same as any other stock. Use the charts. By using stock charts, you’ll be able to know where to enter a trade, where to set stop-loss order, what is the market sentiment about your stocks. A lot of data you may gather from charts.

    To know how to invest in marijuana stocks you have to watch a stock scanner to find trade setups that match your standards and your goals. But one suggestion first. Since there is a bulk of marijuana tickers tracking all of them is simply wasting your time by watching all of them. Moreover, there is no need to do so since we have the technology to work for us. Yes, I am talking about stock scanners. All you have to do is to set up the criteria that you are looking for and after a few clicks, the technology will do the rest.

    Adjust your portfolio to trade long and short. Of course, if you are an investor and not a trader, you don’t need this. Just buy and hold, you are already long and you are waiting for the price to rise. But if you are a trader, to be short means that you have to borrow the stock, sell them at a higher price and wait for the price to drop, and buy the stocks again at a lower price.

    In the coming years, the marijuana industry might grow. But with stocks, we are talking about winners and losers. To be honest, it is much easier to find dropping stocks. So, the short-selling can be very tricky and you must have a really good strategy and be well educated to practice this.

    How to find good marijuana stocks? 

    The main problem is that most investors habitually don’t have access to adequate sources to estimate a company. But still, there are choices. For example, you can invest in ETFs. There you can find pre-selected marijuana stocks. 

    Teams of analysts paid the required attention and chose to add some companies in these ETFs. The other solution is to engage some advisors and stock pickers.

    Whatever you decide to do, keep in mind that marijuana stocks are volatile.

  • Canopy Growth Stocks Rise on Good News

    Canopy Growth Stocks Rise on Good News

    2 min read

    Canopy Growth Stocks Rise on Good News

    The Canadian company was trading 3% higher yesterday. Canopy Growth stocks rise. That is good news. This increase was caused by the announcement the receipt of a key extraction license. The license is associated with its Saskatoon facility, KeyLeaf Life Sciences.

     Canopy Growth Stocks Rise on Good News

    How does it influence the Canopy Growth?

    This license could provide expanding the company’s margins by adding key recreational products. That could push more investors into its stock because the company may hit true profitability.  

    Canopy Growth stated in its press release, that new capacity would improve its productivity and decrease its operational costs of extraction. The final result could be lower cost for value-added products in the Canadian market.

    At the KeyLeaf department, Canopy would be able to extract 5,000 kilograms of cannabis in one day. Canopy Growth said that KeyLeaf is ready for large-scale outdoor cannabis and hemp orders.

    Canopy Growth Stocks Rise – Good news for investors

    The development isn’t cheap and it put strains on the company’s finances. In the Canopy’s press release yesterday, CEO Mark Zekulin tried to relax investors. He said, “With this milestone, we are executing against the vision of making strategic investments today in order to deliver results over the long term.” It could take some time until Canopy become profitable, but the company is assured that the goal is possible to reach in 3 to 5 years.

    US legalization of cannabis

    The Canopy Growth also said about the new extraction facility “ (it) represents a blueprint model for international expansion as global market demand dictates.”

    The point is that the new facility is close to company’s hemp operations and it can be used to develop hemp-based products for the US. The US market is the second, behind the Canadian market.

    In an attempt to take that market, Aurora Cannabis (ACB) finished its acquisition of Hempco Food and Fiber on Monday.

    Moreover, the US legalization of cannabis could be essential for these companies. In the light of coming presidential elections, some candidates are openly supporting the legalizing cannabis in the US.

    Analysts’ about Canopy Growth

    Analysts anticipate that in the first quarter next year Canopy Growth’s sales to grow for 17% to 110 million Canadian dollars from 94 million.  They suppose its gross margin to expand from 15.9% to 22.65%. Also, Aurora Cannabis’s (ACB) revenue could fall 75% in the same quarter to 114 million Canadian dollars.

    Canopy’s increased margin could come from its better product combination and cost optimization. All cannabis companies, have expanded their capacity during the past year. That might influence on cannabis cost per gram. As firms produce more, the cost should fall.

  • Cannabis earnings – the countdown started

    Cannabis earnings – the countdown started

    The cannabis earnings potential is huge
    The cannabis industry is more than ever in investors focus

    by Gorica Gligorijevic

    Cannabis earnings is promising. This week can be very important for the cannabis industry. The time to post financial results is near. So, we will see their records for the last quarter. Aurora Cannabis is a top producer, but maybe some other marijuana stocks can generate more next year.

    First in line to show the last quarter result are:

    Greenlane Holdings Inc (NASDAQ: GNLN), Medipharm Labs Corp (OTC: MEDIF), and Village Farms International Inc (NASDAQ: VFF) they did it on Monday after the closing bell.

    Today, the results from Tilray Inc (NASDAQ: TLRY) will be shown. It is expected Tilray to record a net loss of 25 cents per share and its revenue to be of $41.11 million. Today also, earnings result from Green Organic Dutchman Holdings Ltd (OTC: TGODF), Acreage Holdings Inc (OTC: ACRGF), and Flower One Holdings Inc (OTC: FLOOF) are coming after the market close.

    On Wednesday, Aug. 14, Aleafia Health Inc (OTC: ALEAF), Jushi Holdings Inc (OTC: JUSHF), and Helix TCS Inc (OTC: HLIX) have to post their earnings reports. They are followed by Canopy Growth Corp (NYSE: CGC) and Trulieve Cannabis Corp (OTC: TCNNF) after the closing bell.

    This is a busy week for cannabis companies. Investors seem ready to reward good companies. The main criterion among investors is the company can gain a profit. But, they are more than ready to punish the ones that don’t.

    Cannabis earnings will rise

    The cannabis industry is a big-money market. With legalization in more countries than it is now the case, it can be one of the most valued markets. I know there will still be the black market and a lot of money will go there, frankly more than in the legal markets. But still, this market could produce more than $250 billion in the next 10 or 12 years, counting the annual average sales, of course.

    That sounds pretty good for long-term investors. So, I feel free to suggest to you some companies to watch in the future.

    As the first Aurora Cannabis as a top producer. 

    It is the most trustworthy cannabis company among millennial investors. This data comes from Robinhood, an online app for investing with over 6 million users. The majority of millennial investors are Robinhood users. That put Aurora to the most-held stock online investment. It is reasonable to expect that millennials will take a bigger part in the world of investment in the future and support legal cannabis growth. It is easy to evaluate the reasons behind investors’ decision to invest in this company.

     

    Aurora is leading the world production of cannabis with an annual production of 150,000 kilos. It plans to reach 625,000 kilos of annual output in 2020. And it isn’t unreasonable. By engaging the full production capacity, Aurora can produce 700,000 kilos of marijuana on the annual range.

    Wall Street anticipates Aurora can be one of the best revenue generators in 2020 and capable to deliver about $518 million in sales per year. 

    The potential of cannabis earnings

    There are not too many pot stocks in the arena that could hit this expectation. But, Wall Street predicted three cannabis stocks able to surpass Aurora Cannabis in 2020.

    Curaleaf Holdings is expected cannabis earnings at $900 million in 2020 sales but with a cash-and-stock deal for Grassroots, which will bring to it about $350 million, let’s say Curaleaf Holdings may generate about $1,250 million.
    Also, pay attention to Cresco Labs, the potential of $715 million sounds good as Canopy Growth with $521 million.

  • Cannabis VS Bitcoin Both Are the Two “Sexiest” Plays.

    Cannabis VS Bitcoin Both Are the Two “Sexiest” Plays.

    Cannabis VS Bitcoin
    Cannabis stocks just like bitcoin stock can be hot investment choice these days

    By Guy Avtalyon

    If you have a dilemma in selecting the stocks, cannabis vs bitcoin, this exactly you have to read. Cannabis shares are a temporary hum. Wait! Didn’t they say exactly the same about Bitcoin?

    Traditional Wall Street and media gatekeepers are late.

    The fact is that Bitcoin lacks a time-tested business model and fundamental backing, and it pays no dividend. The other fact, marijuana is illegal in almost every country, putting the business model in jeopardy.

    Pot stocks are more tangible speculative investments, traded and regulated on recognized stock exchanges, but still subject to a variety of market and regulatory risks. We know that advisors can caution their clients on the risks of investing in cannabis stocks, and the risks are there at current merits. It was the same in the case of Bitcoin.

    Cannabis industry

    But the cannabis industry may offer trace to the future of Bitcoin. Because despite their different paths, the crypto and cannabis are siblings. Why? Just spend a few minutes on Reddit pages committed to trading, Bitcoin, and cannabis and you will see similarities of the group. According to TD Ameritrade Inc., trading in pot stocks is superiorly done by millennial-aged males. The stats for crypto look almost the same.

    We are witnessing an explosion of interest in cryptocurrencies, cannabis stocks, and ETFs. And particularly from millennials. What do younger clients need? They love technology. They want to be educated investors, that’s why they are in need of education. They’re younger in their investing and trading careers. But they know what they want. They want to trade 100 shares of stocks at the table in the restaurant using some bot. They don’t want to miss the boat.

    Cannabis vs Bitcoin

    If you’re a  long-term investor type who’s not at all interested in trading, then you’re on the right track to becoming a wealthy investor over the long term. Sticking with such a reasonable investment strategy can be tough, however,  especially if you constantly hear about how a friend of a friend of yours got rich overnight by investing in Bitcoin or Canopy Growth (TSX:WEED) (NYSE:CGC) stock.

    You can ignore the hype, as it has nothing to do with you. It’s difficult to tell the difference between a bubble and an actual paradigm shift that could lead to massive riches over the near term.

    Today, cannabis stocks and Bitcoin are the two “sexiest” plays.

    While the word “bubble” has been thrown by some experts, other equally qualified, are on the other side and are thinking “opportunity of a lifetime.” Being on the right side isn’t a matter of how clever you are. You can find a lot of examples of how some very smart guy has fallen as a victim on the wrong side of the “sexy play” of his time.

    When it comes to subjects like the rapidly emerging rising cannabis market or blockchain-based cryptocurrencies, it’s hard to know what you’re dealing with as an investor. Nobody really knows how much new entities will act in the public markets over a long period. Attempts to make comparisons to events that happened in the past can make some sense but can’t help a lot.

    Neither cryptocurrencies nor cannabis are suitable for conservative investors. It is for visionaries, for those who can perceive the future and recognize the chances. Set a limit and stay within it.

    There are many people in the crypto industry believing in a bright future. As well as there are supporters of the legalization of cannabis. Technology companies, for example, SinglePoint and POSaBIT, are working to create a payment method for dispensaries and consumers using bitcoin. Recently, some cryptos emerge specifically for cannabis transactions.
    This isn’t the first time that stocks in a hot niche have risen. We all know what happened with bitcoin stock a year ago. The companies specializing in the crypto have had fantastic gains.

    Some investors never look back at overhyped fields once they aren’t trending, but investors who invested hard-earned money into most popular stocks usually learn the harder way what results can be.

    Currently, a limited number of marijuana stocks is accessible to most investors. We’ve seen some massive moves in marijuana stocks. Those gains stem from the fact that investors who want to invest in marijuana have limited options available to them.

    Why cannabis vs bitcoin?

    The same case we already saw with many Bitcoin stocks.

    In 2017, the top-performing Bitcoin stocks have less liquidity than many others. They stood very low on that list. But it reversed. In 2018, bitcoin declined in its volatility.
    Of course, speaking about cannabis stocks we can expect winners, but we can’t be sure where to expect. Maybe cannabis investors could learn something from the bitcoin incredible boost in the past. Perhaps the same could occur. Sometimes, success may occur in unexpected places. As an investor in cannabis stocks, just be ready to see the secondary effects. Try to recognize how they can influence the companies that are not always obviously related.

    Investors want to get rich from cannabis stocks, but past investing crazes and experience with cryptos have often left people wishing they hadn’t fallen for the allure of these markets. You can avoid repeating those mistakes and improve your chances of being successful with your investments in the long run. Just get more knowledge, learn permanent, test, and measure everything twice.

     

  • Should You Leave Crypto, Get into Cannabis and ‘ Buy high’?

    Should You Leave Crypto, Get into Cannabis and ‘ Buy high’?

    Should You Leave Crypto, Get into Cannabis and 'Buy high'?
    This topic is a small semantic game with words. But it seems to be a serious business.

    By Guy Avtalyon

    I want to be a clear, cannabis business is serious business.

    Marijuana is a commodity, and commodities markets are subject to boom and bust, amazing and caught.

    Canadian marijuana company Aurora Cannabis Inc.’s shares rose about 4% Thursday, October 18, after it said shares have been approved for trading on the New York Stock Exchange starting October 23. Even earlier, the hype around cannabis stocks was catching up to the crypto craze.

    There’s a huge new trend that is sweeping the investment world. The rise in the legalization of marijuana caused the development of a new investment opportunity. Cannabis Shares, for example, allows investors to buy shares in many legal cannabis-based projects, including the sale of cannabis itself, or products of cannabis.

    Merida Captial Partners, a New York investment firm, said its cannabis fund had been approached by around 50 cryptocurrency investors. “They are looking at cannabis and crypto as an emerging sector,” said Merida managing partner Mitch Baruchowitz, “they might not be connected as industries but they are seen as outside the traditional investment field. High risk and high reward.”

    On the market, the stock ACB ( Aurora Cannabis Inc.), +1.40% ACB, +1.40%, will trade under the ticker symbol “ACB”. The shares are also traded on the Toronto Stock Exchange. This news came one day after Canada fully legalized cannabis for adult recreational use, the first G-7 country to do so, and only the second in the world to do so after Uruguay.

    Canada changes the world following the passage of the Cannabis Act on June 19.

    Which country first legalize recreational marijuana?

    Canada became the first industrialized country in the world to legalize recreational marijuana.

    In the process, it opens the door to possibly $5 billion in added annual sales. This industry is already generating from domestic medical weed and exports to foreign countries where medicinal cannabis has been given the green light.

    Finance barons like to turn any commodity into an investment opportunity. This move was inevitable with the international changes in cannabis legislation. But, many are willing to see similarities between cannabis shares and cryptocurrencies. And they starting to worry that the cannabis industry could wipe out the need for crypto-investment.

    Within the stock market, no asset class has been hotter than pot stocks over the past few years. Many of the largest marijuana stocks by market cap have doubled or tripled in value over the past year, and are up by more than 1,000% over the trailing two-year period.

    Why cannabis stocks are so interesting?

    The fundamental lure of marijuana stocks is its impressive sales growth potential. ArcView, a leading cannabis research firm, suggests that North American legal weed sales could grow by 28% between 2018 and 2021. That would lead to almost $25 billion in annual legal cannabis sales.

    And the public all over the world is in favor of marijuana legalization. All major marijuana polls demonstrate strong favorability toward legalization.

    All six-pot stocks have enjoyed outsized gains in the last few months as Canada legalization appears. These pot stocks generate quarterly and annual profit:  Aurora Cannabis Inc. ACB, +1.40% , Cronos Group Inc. CRON, +0.66% was up 3.8%, Canopy Growth Corp. CGC, -3.51% WEED, -2.77%  was up 2.1% and Tilray Inc. TLRY, +2.89%  was up 3.2%. GW Pharmaceuticals Plc GWPH, -1.30%  was down 0.7% and Aphria Health Inc. APH, +0.26%  was up about 2%.

    Why people love cannabis stocks?

    Tilray is a Canadian cannabis firm, one that announced in September that they traded around $6.5 billion worth of shares on United States exchanges, at the same period Amazon, traded around $7.6 billion on the same exchanges. Amazon has a stock 47 times the size of Tilray, therefore, we can truly appreciate the full scale of this as an investment opportunity.

    Some skepticists are suggesting that the crypto craze is coming to an end, but we know that this isn’t the case. Markets are stagnant because of a transition period. Frankly, they should know that the crypto craze hasn’t yet begun. Cannabis shares are more like traditional commodities and traditional stocks, therefore they are more attractive to a high level and institutional investors. Because institutions are investing in them, the level of cash flowing into Cannabis shares is such. Cryptocurrency has not yet penetrated the mainstream and therefore, there can’t be a threat from Cannabis Shares.

    Investment advice website. Proactive Investors has started a dedicated Telegram channel for investors interested in cryptocurrency, the blockchain, and cannabis. The SEC stated: “Fraudsters may try to use media coverage about the legalization of marijuana to promote an investment scam.”

    On the social messaging app Telegram, some cryptocurrency forums, where users trade investing tips and advice on the anonymous network, have now turned their attention to shares in cannabis growers.

     

    Cannabis Stocks vs Bitcoin

    Why should anybody go to think that individual and personal Cannabis Shares investors, couldn’t also invest in cryptocurrencies as both are new and exciting ventures? Overall, it’s not fair to compare the two. They aren’t a threat to each other. A lot of investments can exist side by side. Because Cannabis Shares are big and popular for many reasons, it doesn’t mean people will stop investing in Bitcoin. Yes, their attention may be rerouted, but this will constantly change.

    “Crypto traders I know are getting into pot stocks,” Jeffrey Van de Leemput, founder of investing-education platform Cryptocampus, said in a message, reported Bloomberg. “But I don’t know if that’s a pattern or just coincidence.”

    Who’s been behind the buying of pot stocks? I have a hunch that its investors tend to be young. It’s the millennials.
    There is the potential for marijuana to be traded as a commodity, similar to how corn and other agricultural products are now bought and sold, or as asset-based security, similar to the way mortgages have long been bundled and sold to investors. Who knows, the cannabis futures market might be the largest futures market in the world.

    But Bitcoin has no plan to become mainstream on the market, it isn’t in its nature.

    Going in bitcoin’s favor, retail investors predominantly control the show. The most bitcoin trading occurs on decentralized cryptocurrency exchanges, and institutional investors usually want nothing to do with these decentralized exchanges, bitcoin is driven by the emotions of retail investors, rather than by fundamental reason. And emotions can be the most powerful tool in pushing Bitcoin’s valuations higher.

    Which investment should you buy with your last $50? Cryptocurrency or marijuana stock?  Both of these investment opportunities are like a plane, they are getting everyone on board and they are ready to fly with or without you.