The market for recreational supplements has been a huge success in the early days of the internet to today. From workout energizers to sleep aids, recreational supplements can be found everywhere from grocery stores to specialty retailers. With that in mind, it’s no surprise that the growing demand for legal cannabis dispensaries in states where weed has been decriminalized and encouraged, the need for financial backing is greater now than ever.
Cannabis is a plant, and much like other agricultural products, it needs land, water, light, and manpower to come to fruition. While a run-of-the-mill backyard seller might make their way in the world with a single crop, the world of industrialized cannabis is going to cost a significant amount more. The costs of land, water, light, for agricultural purposes can be sometimes found at a discount if purchased in bulk, but most of the time, third-party companies can find and manage properties cheaper. Production of cannabis and hemp products is not without risk, so those companies can mean the difference between a licensed marijuana dispensary and a small-scale distribution system.
That’s where the investors come in.
The basics of general investing boil down to giving money to get money. Being an investor means owning a share of a company, and with legal and federally regulated cannabis companies growing in number by the month, it’s a great opportunity for both the business and the investor. The business gains support and financial backing, and the investor gain the opportunity for payback in full at the end of the term as well as additional funds because of profits.
With the political climate being what it is in the United States, the tides of time are changing in the favor of more liberal restrictions on recreational marijuana. Now is a better time than ever to invest in cannabis-based businesses, and the potential for growth right now is pretty much limitless.
Here are a few honorable mentions for the best stock options for cannabis investing in 2021.
Canopy Growth Corp. (Nasdaq. CGC)
Technically a Canadian brand, Canopy Growth Corp. is among one of the highest earners in terms of revenue each quarter. It has a huge market share in the Canadian market, and may now be partnering with Mexico after the legalization in that country.
Comments have been made about Canopy’s interest in expanding their business model across the border, including the Corona beer partner Constellation which expressed interest in promotion and expansion into the worldwide cannabis market.
CuraLeaf Holdings (OTC. CURLF)
CuraLeaf Holdings stands as an expanding market with the highest revenue of any established cannabis market in this list. Currently, on track to gross over $1 billion in annual (yes yearly) revenue, CuraLeaf is jumping over competition across the globe.
This is even more impressive when considering the fact that CuraLeaf operates in a country where cannabis is still not legal, meaning the growth for this company can skyrocket at any time the legislation changes.
Tilray (Nasdaq. TLRY)
Tilray is a combination of the Aphria and Tilray companies which merged to form one of the largest cannabis companies in the world to date. This combination provides itself a huge global operation that benefits from the preexisting market Tilray had in Europe for medicinal marijuana.
After the merger, Tilray the company doesn’t need to outsource production anymore which does wonders for the bottom line. This company is looking at upward growth through the roof over the year.
Trulieve (OTC. TCNNF)
An American-based company hosted in Florida, Trulieve has seen immense growth through the last few years it’s been in business. Now sitting with just over 80 locations across state lines, Trulieve provides a homey kind of environment that appeals to folks in their area.
The only hurdle Trulieve has yet to clear is the legislation around available sellers licensure, which can make it difficult to hire sellers and expand. As the laws in the US change though, Trulieve is on the up and up for growth in the long term.
Subversive Acquisition (OTC. SBVRF)
More so having to do with real estate than marijuana, Subversive Acquisition is a company largely partnering with cannabis companies for agriculture space. These guys buy and manage the property on behalf of the investor, so a very hands-off and convenient approach is best used here.
While maybe not the most conventional on this list, Subversive Acquisition offers an incredible means of investing in a cannabis business without the restrictions of doing so.
Alcanna Inc. (CLIQ.TO)
Largely a Canadian brewery, Alcanna Inc has branched into cannabis sales in over 250 retail stores and over 1500 employees. While cannabis is not the primary focus for Alcanna Inc, it stands as a quickly growing competitive force in the Canadian market.
Alcanna Inc. stocks are fairly cheap as it stands right now, and therefore offers some of the best value on this list in terms of investment returns.
Nic Inc. (EGOV)
On the forefront of legislation and regulation for federal licensing, Nic Inc. offers the government the ability to provide goods and services to citizens via the web. While not directly tied to cannabis production, Nic Inc. offers a unique opportunity for the government to provide service to the public.
Platforms used for regulation, sales, tracking, and more are all integral parts of regulated recreational and medicinal substances like marijuana. It’s a great place to start for investors looking to make a change.
Innovative Industrial Properties Inc. (IIPR)
Another real estate acquisition company, Innovative Industrial Properties Inc. offers an opportunity for medicinal cannabis companies to establish and develop in a managed market and safe setting. Much of the portfolio that Innovative Industrial Properties Inc. sports include industrialized greenhouses for the purpose of growing medicinal marijuana.
Much like the other real estate investments on this list, these companies pose an effective means of investing without having to manage the property.
Village Farms International Inc (VFF.TO)
Another Canadian company graces this list with Village Farms International Inc. This company is an agriculturally invested service that grows produce like tomatoes and cucumbers, and also various cannabis items.
This company has the option to distribute across state and county lines in Canada, the US, and Mexico. With so much of North America within reach, Village Farms International Inc. is one of the fastest-growing produce distribution systems on this list.
CaraTheraputics Inc. (CARA)
Clinically driven companies like CaraTheraputics Inc. are normally always safe bets for investing, but now more than ever before. Focused on medical applications of marijuana, CaraTheraputics Inc. is in research and production phases this last year into this one.
GrowGeneration Corp. (GRWG)
A huge dispenser and producer of agricultural products and services, GrowGeneration Corp. is a backer for organic specialty retail fronts. They offer specialized soil and plant nutrition. They dabble in lighting options and technology as well as water management systems and watering techniques.
Being one of the largest hydroponic retailers in the US, GrowGeneration is growing quarterly to provide a great resource in the cannabis market.
Jushi Holdings Inc. (JUSH.CX)
Specifically a hemp and cannabis-based distribution and retail company, Jushi Holdings Inc. stands as one of the fastest-growing multifaceted cannabis markets on this list.
With assets in finance, agricultural production, vape production, and technology, Jushi Holdings Inc. is quickly becoming a giant in the world of cannabis marketing.
Cresco Labs Inc. (CL.CX)
A consumer-based cannabis production company, Cresco Labs Inc. involves itself in growing, manufacturing, and distributing its cannabis and hemp products. Spread over 9 states in the US, this company is the sole proprietor of the facilities used for production and the dispensaries used by Cresco Labs Inc.
This company has huge growth potential, with uncharted growth over the last two quarters and more pushing the line today.
Amyris Inc. (AMRS)
A manufacturer of fragrances, flavors, cosmetics, and more, Amyris Inc. has a highly effective business model for cannabis production and services. While these applications are primarily medicinal, among the other products that are made with Amyris Inc., cannabis is one of the most researched.
Amyris Inc. is also heavily involved with the research and production of the COVID-19 vaccine and its effects. As far as an investment goes, cannabis or not, Amyris Inc. is a great option.
TerrAscend Corp. (TER.CX)
Another Canadian company, TerrAscend Corp. is an integrated cannabis company that offers dozens of cannabis products on a global scale. They offer portfolio information about the dispensaries they own, the hemp and cannabis production they take part in, and the medicinal applications they subscribe to.
This stock has a huge momentum in the world market and shows great promise for additional growth as the year goes on.
5 Basic Investing Tips
Whether you’re an investment newbie or a seasoned investor, a few basic ideas of investments and how they can benefit you stay the same. We’ve compiled a list to help make good choices in the long term.
Investing takes time to pay out in big bucks. Starting early, even if it’s just a few dollars at a time here or there can make all the different years from now. A 20-year-old with an investment portfolio is more likely to benefit when they’re 60 years old than that same 60 years old having started investing at 45. The more time you give your investments to grow, the more likely they are to get bigger and bigger.
Don’t Let The News Scare You
Media influence has a huge grip on how we perceive the world of finance and our place in it. With that said though, sometimes that influence can drive us to make snap decisions based on the current social climate and social issues. Being aware of the consistent changes in any industry can mean developing a great insight for the rises and falls of that market, but take the media with a grain of salt, use investment tools and peer support to make the right choices for you based on your circumstances.
When investing, it’s often good to have a goal or intention in mind. Having a goal of making money is positive, but largely unattainable because there’s no specific goal at heart. It’s tough to gauge success on an idea, so establish a goal before you start investing. These goals can start small, and as you develop and hone your skills in the investing process, they can grow to meet your needs.
Don’t Invest What You Can’t Lose
Investing takes time to build and grow. Any kind of payout should be expected to take months and sometimes years to be anything substantial. With that said, investing your rent money or gas budget is not the way to grow your wealth. Debt costs more than not having the money at all, so when given the option, ensure that you’ve got all your bases covered before putting funds into your investing portfolio.
Play the Long Game
Last but not least, the best advice we can give for new investors looking to make a break into the world of investing is to be patient. The old saying “good things come to those who wait” can seem like something a parent or grandparent might say to get a child to calm themselves, but the truth behind it is that any good investment needs time to grow. Much like a tree, the smallest of seeds can grow into huge oaks if given enough time and the right resources.
All in all, cannabis investment companies are up and coming in the world market. With so many options, it’s important to research each investment opportunity and talk it over with a trusted mentor or broker. Cannabis is an incredible product with incredible growth opportunities and investment options. Whether you’re looking for a medicinal marijuana route or a recreational backer, investing in the cannabis market is sure to turn a profit and turn heads.