Investing in Marijuana Stocks? Don't Let Your Money Go Up In Smoke – The Ticker Tape (blog)

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I don’t think I’ve ever written an article that had so many opportunities for pun placement, but I held back because risky investments are no laughing matter (as a huge fan of puns, I couldn’t resist some of the temptation). This industry has been called the wild west of investing, littered with overvalued companies and scams. Despite the high risks, many investors are wondering if they should be investing in marijuana stocks.

Anytime you invest you need to know what you’re getting into and, as always, do your research. There are unique differences between investing in this budding industry and more established ones. If you’re set on investing in this space, it’s a good idea to know the warning signs of scams, differences between federal and state laws in the United States, and what’s going on with legalization in Canada. You might also be interested in learning about one area that isn’t operating in violation of federal laws.

Tips to Avoid Marijuana Stock Scams

When FINRA—the organization authorized by Congress to protect America’s investors—finds it necessary to issue Investor Alerts on marijuana stock scams, alarm bells should be ringing. Still not shying away? Well, be sure to also check out the U.S. Securities and Exchange Commission’s Investor Alert on marijuana-related investments.

According to the SEC, “fraudsters often exploit the latest innovation, technology, product, or growth industry—in this case, marijuana—to lure investors with the promise of high returns”. Many marijuana companies are penny stocks trading on over-the-counter, or OTC, markets. For the most part, there is limited publicly-available information on these companies and the SEC warns investors to be cautious if these red flags are present:

SEC trading suspensions E-mail and/or fax spam recommending a stock Insiders own large amounts of stock False and/or exaggerated press

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3 Hot Pot Stocks To Watch – Seeking Alpha

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The legalization of marijuana for medical and or recreational purposes has affected North America immensely. From medical studies that aim to treat illnesses, to helping the average citizen relax after work – marijuana is becoming a product that can benefit almost anyone. Recently, marijuana has been incorporated through stocks. Looking back at 2016, the United States alone saw an increase in sales by 30% as compared to 2015 which brought total sales to $6.7 billion. Over the past 12 months these hot pot stocks have nearly doubled in share prices. This industry is growing at a rapid pace and it is highly recommended to jump on board and partake in some of these gains.

Analyzing the marijuana stock market for the past couple years up until now, unstoppable growth in the legal cannabis industry is undeniable. In 2016 alone the United States had estimated sales of legal marijuana (both medical and recreational) at $6.9 billion. An estimated $46.4 million was conducted within the black market, illegally.

Looking forward, the marijuana market is expected to continue growing at a fast pace both within the United States as well as Canada and other countries. With the recent legalization of recreational marijuana in Canada, sales are on track to generate an expected $23 billion. According to ArcView, expectations of increased sales are at more than 200% by 2020 within the United States.

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When purchasing a pot stock, investors need to be aware of what exactly they are buying. Weighing out the risks and rewards accordingly, such as any investor should, will increase the likelihood of a higher return on investment. There are about 300 different stock options that investors can choose from. The problem is, which one(s) should you choose?

International:

Looking at other countries other than the United States could

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Before Investing in Marijuana Stocks, Follow These Three Safety Tips – Money Morning

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Investing in the right marijuana stocks can be massively profitable, but the pot stock sector is full of risks.

That’s why today, we’re providing Money Morning readers with three important tips for investing in pot stocks from the Financial Industry Regulator Authority (FINRA). Also, we’ll show you how to access our special marijuana investing report from Money Morning‘s pot stock expert in just a bit.

The first tip is critical for all investors and is particularly important for successfully investing in pot stocks

Marijuana Stocks Safety Tip No. 3: Know Where the Stock Trades

Most marijuana stocks trade on over-the-counter (OTC) markets because they don’t meet the standards of major exchanges like the Nasdaq or the New York Stock Exchange (NYSE).

According to FINRA, there are generally no minimum quantitative standards that a company must meet to be listed on the OTC markets.

This is common for the marijuana industry as companies are just starting to create new products and services. But it’s important to know where the stock is trading because risk-averse investors may want to stay away from stocks outside of the NYSE or Nasdaq.

Video Spotting Marijuana Stock Scams

You see, the prices of these stocks on the OTC markets can be extremely volatile.

That’s because the trading volume is lower for these stocks, and if shareholders see a sudden increase in volume, they will react to the volume and quickly buy or sell shares.

Fortunately, risk-averse investors can still own shares of pot stocks on more regulated markets. Cara Therapeutics Inc. (Nasdaq: CARA), Corbus Pharmaceuticals Holdings Inc. (Nasdaq: CRBP), and Innovative Industrial Properties Inc. (NYSE: IIPR) all trade on major exchanges.

Marijuana Stocks Safety Tip No. 2: Read the SEC Filings

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4 Things to Know Before Investing in Marijuana Stocks – Profit Confidential

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How to Invest in Marijuana Stocks

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.

In the case of pot stocks, that doesn’t really work out. I mean, the sale of recreational marijuana has been going on for a long time, it’s just that criminals don’t often keep the best financial records.

But now that legalized recreational marijuana seems closer every day, it’s time to consider the risks and the potential upside of getting into marijuana stocks, especially at such an early stage when a lot of information about the future of weed stocks is still very much in the air.

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.

While the more you know about a stock or industry, the better. In this case we’ll narrow it down to four important bits of information when it comes to marijuana stocks

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Buying On The Pullback: My Marijuana Play – Seeking Alpha

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After the election of Donald Trump, and even after his appointment of the drug war advocate Jeff Sessions as Attorney General, marijuana stocks continued to tear higher… until April, where we have seen a major correction in many of the largest players in the sector. A clamp down on legalization efforts has even the strongest marijuana plays like Aphria Inc. (OTCQB:APHQF), Canopy Growth Corp. (OTCPK:TWMJF), and GW Pharmaceuticals (NASDAQ:GWPH) falling off highs that were reached due to the newfound acceptance of the drug in the U.S. and Canada. During the massive run-up of the Marijuana sector since 2012, many stocks have ended up with outlandish price-to-earnings ratios that needed to come down. They have, to some extent, but still could have more room to fall. Across the board, the sector has less than stellar earnings and stocks are trading at multiples that just don’t make sense. Many of them remain overvalued and overbought. Nevertheless… I see this pullback as an entrance opportunity.

Marijuana legalization in North America is inevitable. In a recent CBS poll, over 61% of Americans said they favored Marijuana legalization, a 5 percent increase from a year ago. To the north, a NRG Research Group poll revealed that over 51% of Canadians favor legalization while only 33% oppose, and 14% neither oppose nor favor. Perhaps even more importantly 60% of 18-34 year olds favored legalization. Add to this the new pro-marijuana stance Canada’s Justin Trudeau has taken, with his promise to legalize recreational marijuana by 2018, and the future seems bright for the industry. Bill Blair, a Canadian lawmaker and former police chief appointed by Justin Trudeau to oversee the legalization legislation, said in a statement made in April: “Criminal prohibition has failed to protect our kids and our communities.” This new more progressive attitude toward marijuana

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