Best Marijuana Stocks to Watch Right Now

Marijuana Stocks Is it a Good Time to Invest in Weed Stocks?

Easter is just around the corner but for the “Prince of Pot,” the real celebration doesn’t begin until the eve of April 20. That’s the day when America’s northern neighbor lights up reefers to rejoice. Why? Because some good news is expected this month that could send both marijuana lovers and marijuana stock investors to the seventh heaven. If you’re an investor, you might want keep your eyes out for the best marijuana stocks to buy now.
Marc Emery is the self-proclaimed “Prince of Pot,” whose activist investments in the Canadian and U.S. marijuana political parties are about to pay off; Canada is going to become the second country in the world to legalize weed, after Uruguay.

And lucky for him, America is right behind it, closely following suit. The 2016 Presidential elections are proof of it.
For the early birds, investments in pot stocks have been a bonanza!
Why I’m Bullish on Marijuana Stocks

Emery and his wife are pot evangelists. Their pot-selling franchise, Cannabis Culture, has opened stores across Canada. Despite fears of getting caught, enthusiasts walk right in to buy cookies and brownies baked with the green ingredient.
The story is no different in the U.S., where love for pot is likewise growing. How can I tell? Simply because recent polls suggest Americans, particularly the majority of generations Y and Z, want weed to be legal.

Both the Canadian and U.S. governments have long turned a blind eye to marijuana’s thriving black market. But now, they understand that it makes more sense to legalize the drug, tax it, and make money.

This is why Canada’s liberal government has taken the lead and is expected to table the legalization bill by April 20. While in the U.S., the elections already proved a blessing for marijuana stocks.

State after state voted to legalize weed. Today, 28 states have opened their doors to medicinal marijuana, of which eight also allow its recreational use.

The fact of the matter is that this is a multi-billion-dollar industry, boasting double-digit year-over-year growth, and selling stocks like hot cakes. Ask yourself; wouldn’t you be bullish too?

So while Aunt Jane was tucking away her money in a boring mutual fund, savvy investors quickly subscribed to this investment idea.

It was as easy as pie. Buy the rumor and wait for the news. Marijuana stock investors saw their stocks doubling, and then tripling.

Take, for instance, the Australian hedgies who’ve just become the top performing hedge fund managers of the year. The secret of their success? You guessed it; weed! (Source: “Marijuana Helped the World’s Top Hedge Fund Gain 145%,” Bloomberg, March 2, 2017.)

In fact, this investment idea has gotten so popular that a Canadian fund decided to launch the first ever marijuana ETF this week. (Source: “A new market high: First ETF to target marijuana stocks,” CNBC, April 5, 2017.)
So those of you who have no clue which marijuana stocks to watch right now can just take a bite of the readily-baked ETF. But those wishing to bake their own brownie, so to speak, can take a look at my ingredient list below.

Believe it not, this covert industry has ballooned into a multi-billion-dollar industry and has rewarded its early investors stupendously.

But the truth is that the investor herd has already moved in. Popular marijuana stock tickers are selling at inflated prices. Making it worse is the fact that the majority of these marijuana companies are not making money, yet.
So finding a cheap, promising, long-term bet is challenging, to say the least. But that doesn’t mean all options are exhausted. If you pay attention, you can still track down some dark horses on the field.
Without further ado, these are, what I believe to be the best marijuana stocks to watch right now.

1. Insys Stock (NASDAQ:INSY)
This company is probably one of the only pure plays in the U.S. that is making any money. Insys Therapeutics Inc (NASDAQ:INSY) is a popular name in the medical marijuana world. Not one, but two of its drugs are now approved by the Food and Drug Administration (FDA).

The company is better known for its popular fentanyl-based drug, “Subsys.” But Subsys is history now. I’ll get to that later. For now, I’m more bullish on its new drug, “Syndros.” 

Syndros has just been scheduled by the Drug Enforcement Administration (DEA) as a Schedule II drug.
What does it mean? It means that it doesn’t fall in the same category as marijuana, heroin, and cocaine, all of which are illegal and classified as Schedule I drugs by the DEA. In other words, doctors have just been given a green signal to go ahead with prescribing Syndros.

So what can it be prescribed for? Simply put, Syndros could be given to AIDS patients with anorexia to induce hunger, and to cancer patients undergoing chemotherapy to fight nausea and vomiting. 

Now, Insys has recently been facing some troubles. Sales of Subsys are deteriorating because of the drug’s fentanyl source. Yes, fentanyl is that infamous substance making headlines of overdoses and deaths. So naturally, Subsys is suffering from the stigma of fentanyl. You can imagine why doctors want to steer clear of it.
Before Syndros, Subsys was Insys’s only cash cow. This is why INSY stock saw a massive sell-off in the past year.

But Syndros could become Insys’s savior in 2017. The drug is expected to hit the market by end of this year.
Long story short; I’ll be keeping tabs on this one. And so should you. Because Insys stock could turn out to be the best marijuana stock right now in 2017.

2. Aphria Stock (TSE:APH)
One million square feet! That is the capacity to which Aphria Inc (TSE:APH) is currently expanding its marijuana-growing greenhouses. If you haven’t heard of it already, this Canadian company grows medical grade marijuana.
Unlike Insys, Aphria doesn’t sell marijuana drugs. Instead, Aphria grows the marijuana strains from which medicinal properties are derived. In other words, APH stock is an absolute marijuana play.

While there are tons of other, even bigger, marijuana companies in Canada, this one holds a special position today. Why? Because Aphria is about to expand into the U.S.

The company has announced this week that it’s entering Florida as its first U.S. market. Eventually, Aphria plans to make a foray into all the U.S. states where medical marijuana is legal. What’s more; the company will be charging a three-percent royalty from its U.S. subsidiary on all sales of marijuana and related products. (Source: “Canada marijuana company Aphria buying into Florida’s market,” Miami Herald, April 5, 2017.)
In fact, the company is the first in Canada to report consecutive quarters of profitability. So you can imagine why it holds a spot on my list.

If you look at the stock price performance, the numbers look surreal. With triple-digit returns within months, APH stock investors have been rewarded handsomely. You may argue that the stock is overvalued. But the recently announced U.S. expansion strategy and its local production capacity expansion point to higher upside.
My take is that APH stock could be a promising growth play ahead of Canada’s plans to legalize marijuana.
APH stock chart

I’m not shy to call it one of the best marijuana stocks right now.

3. AbbVie Stock (NYSE:ABBV)
Finally, up on the podium is this pharma company, spun-off from the household name, Abbott Laboratories.
AbbVie Inc (NYSE:ABBV) is not a marijuana company, per se. So why is it on the list? Because it makes a drug that contains a derivative of marijuana and is a direct competition to similar marijuana drugs.
In case you’re new to this space, marijuana drugs carry THC (tetrahydrocannabinol)—the ingredient that comes from this green grass and naturally contains its properties.

Now, AbbVie’s marijuana drug “Marinol” contains synthetic THC, which is not actually derived from marijuana but carries its properties. So what does Marinol do, you ask? It counters nausea and vomiting in cancer patients and boosts appetite in HIV/AIDS patients. Sounds familiar? Yes, Insys’s newly approved drug Syndros, which I just mentioned some paragraphs ago, does exactly the same.

But AbbVie’s Marinol has been around for over two decades now and was the first of its kind to hit the market. So you can imagine its popularity and dominance over its peers.

By the way, AbbVie’s real claim to fame is “Humira,” its arthritis drug. Just so you know, Humira is of the top drugs in the world in terms of sales. So, you see, there are more reasons to be bullish on AbbVie than just its marijuana drug.

But if you’re still not impressed, just take a look at its steadily growing earnings, robust return on equity of 138%, and the yummy dividend yield of 3.6%.

Whether marijuana gets legal or not, AbbVie will keep making money. So ABBV stock is more of a safe play on the list—one you can’t afford to ignore as one of the best marijuana stocks right now in 2017. 

Bottom Line on Best Marijuana Stocks
Take investment wisdom from the old adage; the early bird catches the worm. So take flight before all the worms are gone.

Keep your eyes open, my friends! More states are expected to move towards legalizing weed this year. This could only mean one thing; marijuana stocks are in for a good run. If you don’t want to miss the boat, consider the three best marijuana stocks to watch right now.

5 Questions to Ask Before Investing in Australia’s Cannabis Boom
April 11, 2017

Ever since Australia moved to legalize medical cannabis, dozens of Australian companies have bloomed and boomed, with shares climbing in value as Australian state governments continue to relax regulations.
But what about the risks still lurking in the nascent market? To succeed, these companies rely heavily on continued government reform. To avoid getting burned, investors should do their homework. Here are a few questions to get started.

1. How Long Will It Take the Company to Get up and Running?
Applicants are first required to obtain a government-issued license. Then they must build a facility, be certified the Department of Health’s Therapeutic Goods Administration, and nail down other required permits. Only then can they begin growing cannabis—and presumably, bringing in revenue.
These steps can be laborious and needs to be navigated carefully. Investors should be on the lookout for companies with low overheads and enough capital to survive a waiting period that tends more to years than months.

2. Once the Company Is Producing Cannabis, What’s the Procedure for Turning It Into Medicine?
Under Australia’s strictly pharmaceutical framework, cannabis needs to be processed into medicine before it can be prescribed by doctors or delivered to patients. The Therapeutic Goods Administration controls medicine listings and has a rigorous process for listing new ones. Any company looking to create a new pharmaceutical would need to subject it to clinical trials, which can take years and cost millions of dollars.

3. How Will the Company Sell Products at a Competitive Price?
Australia’s incredibly strict rules for medical cannabis require indoor grow operations and a range of high-security measures. Add to that the high cost of doing business in general in  Australia, and you’re looking at very pricey plants. Raw cannabis material used to produce pharmaceuticals are more likely to come from low-cost markets such as India or China.

Patenting strains, however, could create a viable and cost-effective way to produce novel strains—for example, ones that churns out high concentrations of some of the rarer cannabinoids. But that could require a sizeable R&D budget and specialty plant scientists, boosting overall expenses.

4. How Will the Company Compete With Large, Global Pharmaceutical Makers?
This is a tough one, as there aren’t many good answers to this question just yet. The supply chains, intellectual property, expertise. and market presence of massive pharmaceutical companies make for a tough competition. Giants will likely dominate the industry as soon as medicines come lose patent protections, as is common for most medicines.

5. How Will the Company Compete With Synthetic Cannabinoids?
It’s a fact of the market that very few pharmaceutical products continue to use whole cannabis plants as inputs when they can manufacture largely similar medicines through industrial processing.
This is nothing new in health care. One classic example is that of salicylic acid, commonly used to treat warts, psoriasis, acne, and dandruff. Once obtained from the bark of willow trees, it is now cheaply synthesised and manufactured in factories. As advances are made in synthetic cannabinoids, it isn’t hard to imagine some cannabis greenhouses going the way of willow tree plantations.

Stock Takes: A new way to get high returns
Apr 13, 2017

Investors in Australia and Canada are grabbing the opportunity to make money off companies in the medical marijuana industry. Photo/Supplied.
Investors in Australia and Canada are grabbing the opportunity to make money off companies in the medical marijuana industry. Photo/Supplied.
A new way to get a high

While the debate over whether to legalise cannabis for medicinal reasons rages on in New Zealand, investors overseas are grabbing opportunities to invest in stocks benefiting from growth in the sector.

Canadian firm Horizons last week launched the first marijuana exchange traded fund on the Toronto Stock Exchange.

The fund offers investors direct exposure into 14 North-American listed stocks that are involved with medical marijuana bioengineering and production.

Medical marijuana has been legal in Canada since 2001 and the country could be poised to legalise recreational use next year, making the investment opportunity particularly attractive for cannabis connoisseurs.

Horizons spokesman Mark Noble said it would probably be quite difficult for New Zealanders to invest in this fund.

"They would have to work with a broker that has the ability to purchase Canadian-listed ETFs."

But there could be some options closer to home on the ASX where medical cannabis-related companies are proving to be very popular.

The Australian Financial Review reported this week that phytochemical profiling company eSense-Lab had risen 140 per cent this year on the back of strong support from the pot stock community.

While cannabis watering system manufacturer Roto-Gro International was also up more than 100 per cent.