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What has happened in Canada has changed little in the United States. The federal ban on marijuana is still in effect. Yes, marijuana for recreational and medical purposes is legal in nine states and 31 states respectively. (Both are legal in Washington DC) However, in most cases, marijuana growers can only legally operate in their home country. Without changes to the rules at the federal level, most marijuana stocks in the United States have limited growth potential.
There is a little hope though.
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There is legislation in circulation by the Congress that could delete the marijuana program Although unlikely to be approved, this could make marijuana for medical purposes across the country and leave marijuana for recreational purposes in the US Also, as more and more States legalize marijuana at a faster pace, the federal government may not continue the market.And recently, the DEA reprogrammed Epidiolex, a GW Pharmaceuticals (NASDAQ:GWPH) a drug containing cannabidoil, as a Schedule 5 drug after the FDA has approved it. What is discouraging, however, is that the DEA has not reclassified all products containing cannabidoil. "Data-reactid =" 15 "> A law circulated by Congress could remove the marijuana designation under Annex I. This may not be approved, and more and more States legalize marijuana at an accelerated pace, the federal government may not continue to be the limit of the market it is currently. GW Pharmaceuticals (NASDAQ:GWPH) a drug containing cannabidoil, as a Schedule 5 drug after the FDA has approved it. What is discouraging, however, is that the DEA has not reclassified all products containing cannabidoil.
The federal government is not yet there to legalize weeds. This does not mean that there is no marijuana stock in the United States to buy. Some companies are likely to take advantage of the legalization, and you can buy them now if things are uncertain.
While it is difficult to determine which company will become American canopy growth, these marijuana stocks could become more attractive investments if the federal government lifted the restrictions:
CV Sciences, Inc. (CVSI)
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "CV Sciences (OTCMKTS:CVSI) deals with cannabis from the point of view of pharmaceuticals and consumer products. The Las Vegas-based company is developing CBD-based drugs as well as products with national distribution in health food stores. "Data-reactid =" 31 ">CV Sciences (OTCMKTS:CVSI) deals with cannabis from the point of view of pharmaceuticals and consumer products. The Las Vegas-based company is developing CBD-based medicines as well as products that are nationally distributed in health food stores.
CVSI's CBD products omit the psychoactive aspects of cannabis. As such, they received less opposition from the anti-marijuana forces. This reduced opposition gives limited latitude for doing business outside their home country. This should give CVSI a head start if and when federal restrictions will disappear.
Despite the restrictions, the stock of CVSI remains expensive. Analysts expect the company to make a profit this year. However, current projections give the company a price / earnings ratio (P / E) of 110. Nevertheless, revenues increased by 87% in 2017. And in the first half of 2018, total revenues should experience a similar increase. again this year. As a result, it appears that the group is showing growth that could justify the high P / E ratio.
In addition, like other marijuana stocks in the United States, CVSI remains small. Market capitalization stands at around $ 500 million. Curiously, this makes it one of the largest marijuana companies in the United States. However, if the legal restrictions disappear, I believe that CV Sciences and other American companies will obtain the status of large capitalization. Such growth potential is the perfect time to buy CVSI shares.
Innovative Industrial Properties, Inc. (IIPR)
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Innovative industrial properties (NYSE:IIPR) may seem like a strange choice among American marijuana stocks. As a real estate investment trust (REIT), you might not think of a cannabis company. However, the IIPR asserts itself as "the main provider of real estate capital for the medical cannabis industry". In other words, it has industrial buildings and greenhouses specializing in the cultivation of medical grade cannabis. Although the company is based in San Diego, it has properties located mainly in the northeast of the country. "Data-reactid =" 46 ">Innovative industrial properties (NYSE:IIPR) may seem like a strange choice among American marijuana stocks. As a real estate investment trust (REIT), you might not think of a cannabis company. However, the IIPR asserts itself as "the main provider of real estate capital for the medical cannabis industry". In other words, it has industrial buildings and greenhouses specializing in the cultivation of medical grade cannabis. Although the company is based in San Diego, it has properties located mainly in the northeast of the country.
Its REIT status also offers an unexpected benefit for small marijuana stocks: a dividend. The company will pay $ 1.40 per share in dividends this year, a return of about 3.25%. Despite this dividend, the company has earnings growth comparable to that of other marijuana stocks. The IIPR stock gained 75 cents a share this year. Analysts estimate that this figure will increase to $ 1.95 per share next year, an increase of 160%. They also expect their revenues to rise from $ 14.04 million in 2018 to $ 24.61 million the following year. This would represent an increase of 75.3%.
KushCo Holdings, Inc. (KSHB)
Tilray Stock fans must lead MJ to success
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Based in California KushCo Holdings (OTCMKTS:KSHB) serves as a holding company for several companies in the cannabis sector. This includes a sales and distribution platform, a marketing company, a research and development group and even a company. 39, energy producing hydrocarbons and solvents for the cannabis sector. "Data-reactid =" 69 "> Based in California KushCo Holdings (OTCMKTS:KSHB) serves as a holding company for several companies in the cannabis sector. These include a sales and distribution platform, a marketing company, a research and development arm, and even an energy company producing hydrocarbons and solvents for the cannabis industry.
A more diversified game among American marijuana stocks, KushCo operates not only across the United States, but also in South America and Europe. It is also present in all major cannabis markets in the United States and Canada.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Like other cannabis producing companies, the investors in KSHB stocks expect analysts expect that for the year ended Aug. 31st, the company will report revenues of $ 51 million. If the company meets the estimates, this will represent an increase in revenue of 171% over the previous year. However, despite a profit of 2 cents per share last year, analysts expect a loss of 7 cents per share for the current year. They also expect a loss of 5 cents per share for the next fiscal year. Nevertheless, with the massive growth of their incomes, they should finally recover their profitability. "Data-reactid =" 71 "> Like other cannabis companies, KSHB equity investors expect massive growth.st, the company will report revenues of $ 51 million. If the company meets the estimates, this will represent an increase in revenue of 171% over the previous year. However, despite a profit of 2 cents per share last year, analysts expect a loss of 7 cents per share for the current year. They also expect a loss of 5 cents per share for the next fiscal year. Nevertheless, with the massive growth in incomes observed, they should finally return to profitability.
Shares are trading in the range of $ 6 + and must still enter the two-digit numbers. However, KushCo's growth, as well as the global presence of the company, should bode well for KSHB's shares if the federal government relaxes the restrictions.
MariMed Sciences, Inc. (MRMD)
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Marimed (OTCMKTS:Mr RMD) stands out among the US Marijuana stocks for its advisory services. The company based in Newton, Massachusetts, helps other companies optimize production and sales in the cannabis industry. The company also manufactures its own products under the brand name Kalm Fusion. However, since its consulting group does not act as a producer, it can escape the interstate trade restrictions that hinder most other cannabis producing companies in the United States. "Data-reactid =" 84 ">Marimed (OTCMKTS:Mr RMD) stands out among the US Marijuana stocks for its advisory services. The company based in Newton, Massachusetts, helps other companies optimize production and sales in the cannabis industry. The company also manufactures its own products under the brand name Kalm Fusion. However, since its consulting group does not act as a producer, it can escape the interstate trade restrictions that hinder most other cannabis producing companies in the United States.
<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "MariMed also recently made a strategic investment in Sprout, Sprout is a comprehensive CRM system for the cannabis industry that will use technology, data and content to help clinics increase both sales and customer engagement. Salesforce.com (NYSE:CRM) of the weed industry, it provides the market with what might be considered a "marijuana technology company". "A comprehensive customer relationship management system for the cannabis industry that will apply technology, data and content to help clinics increase both sales and customer engagement. Salesforce.com (NYSE:CRM) of the weed industry, it provides the market with what could be considered a "marijuana technology company".
Nevertheless, when we look at the financial data, we can admit that MRMD looks like an expensive penny stock. Despite trading below $ 5 per share, it trades at nearly 40 times book value and over 100 times the sales. Nevertheless, for the first six months of the year, MRMD recorded a profit of 530,000 USD, excluding non-financial expenses. And with a market capitalization of just over $ 910 million, MariMed is becoming one of the largest pure play marijuana companies in the United States.
Despite the costs of the MRMD stock and its successes in a highly constrained environment, I can only see growth going up only if the US lifts the restrictions.
Scotts Miracle-Gro Co. (SMG)
Cannabis still expected to spread in Miracle-Gro on Scotts stock
Source: Shutterstock
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Consumers know Scotts Miracle-Gro (NYSE:SMG) is better as a lawn fertilizer company, which may lead some investors to question why SMG's actions are on this list. Although it is not a game apart from the US marijuana stocks, the company has found a lucrative growth sector in the nascent cannabis industry. Scotts has a subsidiary, Hawthorne Gardening, which specializes in hydroponics for cannabis growers. "Data-reactid =" 105 "> Consumers know Scotts Miracle-Gro (NYSE:SMG) is better as a lawn fertilizer company, which may lead some investors to question why SMG's actions are on this list. Although it is not a game apart from the US marijuana stocks, the company has found a lucrative growth sector in the nascent cannabis industry. Scotts has a subsidiary called Hawthorne Gardening, which specializes in hydroponics for cannabis growers.
It is interesting to note that problems within this subsidiary may have created an opportunity to purchase SMG shares. Nine states allow sales of marijuana for recreational purposes. However, because of its population, California represents the majority of this activity. As a result, legal problems in the Golden State hindered sales of Hawthrone. The SMG action has dropped due to these concerns. He is now trading near his 52 week lows.
However, I see this as a buying opportunity. Other major states, including New York and New Jersey, are considering growing recreational grass. This should result in a reduction of dependence on California.
In addition, SMG shares provide an opportunity for conservative investors and value-oriented investors to invest in the cannabis industry. The P / E ratio is 17, a boon for other cannabis stocks. In addition, the company pays an annual dividend of $ 2.20 per share.
The SMG stock may not come immediately to mind when it comes to marijuana stocks in the United States. However, as a dynamic subsidiary in a boring industry, investors can benefit from both security and earnings growth by investing in the cannabis sector through SMG stock.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "At the time of writing these lines, Will Healy did not hold any position on the aforementioned shares. You can follow Will on Twitter @HealyWriting."data-reactid =" 110 ">At the time of writing these lines, Will Healy did not hold any position on the aforementioned shares. You can follow Will on Twitter @HealyWriting.
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