BUZ INVESTORS Best Marijuana Penny Stocks There are very few industries generating as much buzz as the medical and recreational marijuana markets are these days. With legislation across the world generally trending toward the legalization—or at least decriminalization of the drug—growth potential is strong, with investors seeking out “the best marijuana stocks to buy 2017.”
What makes the industry even more attractive are the best marijuana penny stocks to buy now, which could allow you to get in on the market without having too much capital to begin with. In this piece, we’ll be tackling the marijuana stocks to watch, from cheap marijuana stocks to those that are a little bit on the pricier side.
The first development we’ll look at is the announcement coming from the Canadian government that recreational marijuana sales will be legalized in that country by 2018. That would make Canadian pot producers some of the best marijuana penny stocks 2017, seeing as how they are likely to get a huge boost if the government can come through on its promise. (Source: “Liberals to announce marijuana will be legal by July 1, 2018,” CBC News, March 26, 2017.
Reports are coming in that the Canadian government wants to have a bill tabled before April 20, an important date to cannabis lovers, due to its correlation with 4/20, a sacred number among pot smokers.
While by no means a done deal, the news coming out is still positive for the weed business, as evidenced by several Canadian marijuana companies seeing surges in share prices since the news broke that the government is pushing hard to implement legislation. (Source: “Marijuana stocks jump on legalization reports,” The Globe and Mail, March 27, 2017.)
Canadian weed companies (which feature heavily in this list) are obviously going to be the greatest impacted by new legislation, but the industry as a whole should benefit from a lessening of restrictions in a strong market.
When looking into how to invest in marijuana penny stocks, the last thing you want is the chance for extreme negative volatility. Penny stocks are volatile by nature, and the weed business hasn’t exactly been stable, but finding ways to mitigate the riskier aspect of that trade is always a good way to add some security to your investment. And one of those mitigation strategies would be avoid time of political upheaval, especially when the politics could easily go against you.
While national legalization is nowhere near being a political reality in the U.S. at the moment (despite the majority of Americans agreeing that marijuana should be legalized), there is hope for action on the state level. A total of eight states have legalized recreational marijuana use, and 29 states have pushed through medical marijuana usage legislation. (Source: “What Jeff Sessions Said About Marijuana in His Attorney General Hearing,” Fortune, January 10, 2017.)
But, due to preemption, where federal law can overrule state law, federal regulations have still made certain aspects of the weed business difficult. For instance, banks that operate outside the states where pot is legalized are unable to accept money directly from the industry, forcing many pot sellers to resort to a cash-only business style.
The thing to remember about the best marijuana penny stocks 2017 is that they are, by nature, extremely volatile. You’re acting on cheap stocks that are known for the lack of liquidity and, therefore, being mercurial within the confines of an industry similarly noted for its vulnerability to rapid change.
|Best Marijuana Penny Stocks 2017||Ticker|
|Cara Therapeutics Inc||NASDAQ: CARA|
|Aurora Cannabis Inc||CVE: ACB|
|Aphria Inc||CVE: APH|
The first stock we’ll consider is Cara Therapeutics Inc (NASDAQ:CARA).
Shares of CARA stock have jumped a jaw-dropping 80% since the beginning of the year. Over the last 12 months, that number improves to 187%. It has been a great time to be an investor in Cara.
Aurora Cannabis Inc (CVE:ACB) perhaps best fits the bill of what marijuana penny stock chasers are looking for: it has a low share price mixed with strong momentum. The company is Canadian-based, making it ideal to take advantage of the weed goodwill exhibited by the Canadian federal government.
While not as impressive as Aurora, with its massive rise, Aphria Inc (CVE:APH) has experienced strong returns of its own, gaining 421% over the past 12 months. Similar to Aurora, APH stock is one of the lower-priced marijuana stocks and, therefore, more aptly fits the bill of the best marijuana penny stocks of 2017, compared to a more household name like, say, Canopy Growth.
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