How to Invest in Marijuana Stocks
BUZ INVESTORS Before Investing The stock market is always looking for “the next big thing.” Analysts and investors are constantly trying to find the next emerging piece of tech, commodity, or even company. And one of the most intriguing sectors around can be found in marijuana stocks and the weed industry in general. But what is the best way to invest in marijuana stocks? And what should investors know before investing in marijuana stocks?
The thing about any emergent industry is that by its very nature, there are going to be a lot of question marks. After all, it’s emergent for a reason. Established sectors are easy to read because they have a significant track record and history that investors can look into if they want to know more about the sector.
Marijuana Stock List: What You Need to Know
As with any industry, there’s a ton of information flitting about. But in the marijuana industry, you have all the standard and usual info, on top of the often mystifying hype, and a lot of future projections that have yet to be justified.
1. Follow the News
Pot stocks are susceptible to the news now more than ever, especially as many countries seek to push for reform when it comes to the drug.
While many nations are at various points along the road to total legalization, the news is an important outlet that can help investors plan ahead and make the right moves at the right time.
Consider a big meeting of government officials where they are meant to comment on the state of marijuana in their own country. If you know that this meeting is on its way, you can anticipate that it will likely have a strong impact on the stock prices the next day.
2. Follow the Politics
While politics can influence a great many stocks in a great many ways, marijuana stocks are in a unique position in that one whole side of their business is currently illegal in many parts of the world, and the vast majority of developed nations.
These stocks are special in that they are literally totally dependent on the political mood and trajectory, whereas it’s unlikely that, for example, something like Facebook Inc (NASDAQ:(FB) will be banned anytime soon. Therefore what you have is a situation where politics exercise a more-powerful-than-usual hold over the industry.
3. Find a Company with a Competitive Advantage
So early on in the industry, as hype carries many companies on their way to strong gains, it’s important to look for a marijuana stock that actually has something to offer beyond just hype.
As with most booming industries, a lot of duds are bound to sneak in and disappear when the hype dies down. We don’t want to put our money in a dud. And that makes it even more important to know all you can about a company before investing.
Take, for instance, Aphria Inc (CVE:(APH), TSE:(APH).
4. Do Your Research
The connective tissues in each of these tips is for you to research, research, research. Knowing the company, the industry, the politics, the news, anything can help give you an advantage that will let you fare better with your investments.
|Industry:||Computer Hardware » Electronic Components NAICS: 335929 SIC: 3678|
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Amphenol Corporation designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems and coaxial and flat-ribbon cable.
Amphenol is one of the world’s largest designers and manufacturers of connectors, cables, and sensor-based products. Amphenol’s products are used primarily to transmit electrical and optical signals for a wide range of electronic applications. Primary end markets include voice, video, and data communication systems, commercial and military aerospace electronics, industrial factory automation equipment, mobile devices, and transportation applications.
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