The recent election has legalized marijuana for use in an additional four states. This means that pot is now legal to use – in some form – in nearly half of the U.S. states. All of the changes have propelled marijuana-based industries and have opened up doors for investors to put their money in the new market of weed. And while marijuana is still not legal on a federal level, until the nationwide ban is enforced, stock values will continue to rise. The best marijuana stocks at the moment are Aurora Cannabis Inc., General Cannabis Corp, Cannabis Sativa Inc, THC Biomed, and Aphria Inc. They seem to be those specializing in the medical marijuana industries.
The Best Marijuana Stocks
Stock picks can change at any moment. At the time of this article, these five companies were showing impressive growth and are poised to continue, provided new regulations on marijuana sales and marketing don’t limit their potential. Concerns that the FDA may step in and embrace marijuana through creating new classes for medical marijuana could stifle growth across the industry. But for now, these five stocks have been climbing and are considered by many to be leaders in the marijuana stock market.
1. Aurora Cannabis, Inc. (CVE: ACB)
Based in Vancouver, Canada, this stock has been trading at around $2.10. It has the second highest square footage approved for production in Canada. It was also the first applicant in Canada to construct a purpose-built facility. Aurora claims to be the lowest cost-per-gram licensed producer in Canada.
Learn more at the investor relations page for Aurora Cannabis, Inc.
2. General Cannabis Corp (OTCMKTS: CANN)
This company’s stock last traded at $2.42 per share. They make much of their money leasing space and facilities to small marijuana businesses in the U.S. They are based out of Denver, Colorado and hope to soon get the logistics completed for their own grow operations.
Learn more at the General Cannabis Corp investor relations page.
3. Cannabis Sativa Inc. (OTCMKTS: CBDS)
Trading at just under $5, this is one of the higher-priced marijuana stock. It deals in industrial marijuana and organic hemp, both for health and beauty purposes. Cannabis Sativa recently entered into a partnership with a California hemp farmer, pushing its organic hemp growing businesses to another level. It is also the owner and creator of the “hi Dispensary” brand, which opened its first store in Portland and hopes to grow into a booming franchise opportunities for marijuana advocates.
See more at the Cannabis Sativa Inc. investor relations page (coming soon.)
4. THC Biomed Intl Lt Com (CSE: THC)
At just $.98 per share, this stock has seen steady growth over the past few months. It is another Canadian brand, which describes itself as “devoted to Research & Development, plant innovation and life sciences, with the emphasis on Medical Cannabis.” Much of their business growth looks to be in growing at home; they currently supply a variety of seeds to qualified growers.
Learn more about THC Biomed here.
5. Aphria Inc (CVE: APH)
Is this the best marijuana stock? Trading at just under $4.50, many have already invested. According to Aphria, it is the first public licensed medical cannabis producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters. It is a Canadian company most known for its cannabis oil products.
Learn more about Aphria Inc investing opportunities here.
How to Buy the Best Marijuana Stocks
One solid way to get into marijuana stocks, whether to fund medical or recreational use, is to speak to a qualified broker. There are many available who welcome the trend in investing in marijuana stocks, and some also specialize in what is called “investing for social good.” That means investors can now put their money only toward those companies that align with their personal stance on big matters, such as the environment and human rights. Often, you can find the right professional to help align the social good goals with the interest in marijuana industry growth.
If you decide to go it alone, there are many ways to invest on your own in the best marijuana stocks. One way is to keep your eye on the newly created Marijuana Index, which began January 0f 2015. This doesn’t come close to representing all of the hundreds of cannabis stocks available. Currently, they only list those with a market capitalization of at least $10 million, a daily trading volume of $20,000 and a share price above 10 cents. (So you penny stock traders will have to go somewhere else.)
If and when marijuana becomes recognized federally as a legitimate investment in the U.S., you’ll start seeing more and more of these stocks available at DIY sites like Sharebuilder. Until then, you’ll have to rely on outside sources (like Canada.) If you are an accredited investor, you can register and fund companies through CannaFundr.
How to Buy Canadian Marijuana Stocks
Finding a company you like here will give you a good idea of past growth and volatility at a glance, so that you can then go purchase your own stock through an online site. Since those we mentioned are all Canadian stocks, and do not participate on the NYSE, you’ll have to register with and fund an account that specializes in Canadian securities. Here are the top online sites for buying Canadian marijuana stocks:
PennTrade
PennTrade allows you to buy and sell both U.S. and Canadian stocks, which will include some of the marijuana stocks we mentioned. With a $1,5000 minimum deposit, you can start buying right away. Not that Canadian stocks have a transaction fee higher than those from the U.S. ($34.95 vs. $19.95.) Sign up, look for the stock letters from the companies we mentioned, and get started buying the best marijuana stocks the same day!
Investor’s Edge
This Canadian based trading platform and education center offers lower fees, but requires you to put more money in on the front end. Investor’s Edge is designed to help you design a holistic approach towards your financial goals, not just pick one or two stocks. If you have a lot to invest, and want to include marijuana stocks as part of healthy asset allocation.
QuesTrade
This site most closely resembles America’s Sharebuilder platform. It’s a user-friendly interface that allows you to trade stocks for a penny per share and also covers trades for $10million dollars with their insurance policies. Get Canadian stocks from this fastest-growing online Canadian brokerage by signing up with Questrade here.
Should You Buy Marijuana Stock?
The market has been an exciting place to watch the rise and fall of this emerging market. As with any stock, there will always be risk, and that is especially true for the marijuana market. Since cannabis and cannabis use is controversial, it’s not unlikely to see the government step in and do more regulation to determine how, where, and why cannabis can be purchased, and this will always effect stocks. Some buyers are taking a cautious approach and only purchasing marijuana stocks as part of a well-balanced portfolio. Many more are focusing solely on medical use, as this may seem more likely to be allowed, even in the case of a future nationwide federal crackdown.
The cannabis stock industry has seen a lot of shakeup. Many early entries into the market have failed. Smaller startups focusing on recreational use have not been able to keep up with the large arms of medical marijuana conglomerates. There will be much competition that will continually weed out the low-performing stocks. If you buy low, you may eventually make a lot of money; or you could be investing in a stock that’s doomed to fail.
(All stocks carries risk. You are not guaranteed profit, even with the best marijuana stocks. You can lose your money. Invest with caution and seek financial advice if you are unsure of the risks of trading in any market.)