Marijuana Stocks – An Industry Overview

Marijuana and Cannabis Industry

Marijuana or the cannabis industry has finally started to come out of the stone ages, thanks largely to the progressive and liberal countries like Canada. Two countries Canada and Uruguay have legalized the use of Cannabis for both medical and recreational purposes, while countries like the US have fully legalized medical use and moving towards the legalization of recreational use. Canada, the US, and the North Americas in general are a huge market for the recreational use of marijuana, but the legalization came with recent researches showing the medical benefits of marijuana plants – Marijuana Stocks – An Industry Overview.

Medical and Recreational Stocks

With full legal backing, it is no surprise that top performing stocks in the Marijuana industry hail from Canada. The medical use of cannabinoids or CBD in short; different chemicals found in the cannabis plant are used in the treatment for neuropathic pain and nausea.   

The companies involved directly or indirectly with cannabis use can be categorized into three segments: 

  • The Marijuana Growers 
  • Companies using Marijuana as recreational products 
  • Pharmaceutical companies using cannabis in medicines. 

Canadian Marijuana Stocks

The top cannabis growers from Canada are also one of the top performing Marijuana Stocks. The Cronos Group, the Canopy Growth Corporation, and the Aurora Cannabis incorporation are all top Canadian based Cannabis growers. 

The GW Pharmaceutical and the Abbvie Inc. are the two top companies using Cannabis in their medical research and different medicines. 

The recreational usage of Cannabis is mostly connected to the beverages industry; few of the companies using cannabis as their beverages component are Anheuser-Busch InBev, Moslon Coors, and New Age Beverages Corporation. 

Best performing Marijuana Stocks 

The industry leaders with proactive measures and legal backing in the cannabinoids stocks industry hail from Canada with no surprise. The best performing stocks in Canada are: 

  • Canopy Growth Corporation with a total market valuation of $ 6.9 billion. 
  • Aurora Cannabis, the company has a total market cap of $ 5 billion 
  • Aphria Incorporation with a total market value of $ 1.05 billion 

Few of the Cannabinoids stocks have also started listing on the US stock exchanges such as NASDAQ and NYSE. Recently the Canopy Growth Corporation or the CGC listed their shares with NYSE. These companies in the US stock exchanges include Amyris Inc., Tilray Inc., Cronos, and GW Pharmaceutical corporations. Tilray Inc. stocks are one of the bestvalued stocks in the NASDAQ stock exchange with a market capital value of $990 million and a current share price of $ 7.95. The GW Pharmaceutical Stock is one of the highest priced shares traded in NASDAQ in the CBD based companies category with a share price of $ 120 recently. 

Canopy Growth Corporation


 

Aurora Cannabis


 

Aphria Incorporation


 

 

Where to buy Marijuana Stocks:

The stock or share trade for the CBD companies had long been put to halt due to legal formalities and social stigma. The CBD companies using cannabis plants both for medical or recreational use were not listed on any stock exchange for many years. With new legislation in Canada and a few US states allowing the Marijuanabased business activities, the tide is turning now. Most commonly CBD company stocks can be traded in the open market or precisely Over-The-Counter OTC markets, where the company stocks are normally valued at less than $1 (nominal book value of a share). With legal status granted, some of the CBD Companies in Canada have listed their shares to the Toronto Stock Exchange. Few entrants have also listed shares in the US stock exchanges such as the Canopy Growth Corporation or CGC in the NYSE. For Corporate investors, however, the Exchange Traded Funds or ETFs in the US do not have any existence as yet, due to uncertainty in the federal legislative process. The ETFs such as Horizons Medical Marijuana is listed in Canada with the Toronto Stock Exchange. 

Conclusion

In conclusion, the Marijuana Stocks in the recent past have begun to break the stereotypes. With recent researches showing the medical benefits of the Cannabinoids chemicals in neuropathic pain and nausea, the support for cannabis legalization in the US has also increased.  For individual investors interested in Marijuana stocks, the trade opportunities are OTC markets and some of the stock exchanges such as the Toronto Stock Exchange and NYSE. Corporate investors interested in ETFs could trade CBD funded ETFs in Canada.