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Despite U.S. Attorney General Jeff Sessions’ best efforts, there is no stopping the legal marijuana movement in the United States, and that’s why we’re bringing Money Morning Members three of the best marijuana investing strategies for 2018.
According to Chris Walsh, editorial vice president at Marijuana Business Daily, Sessions’ announcement last month was “like watching a train roll down the tracks, and sticking your foot out to try and stop it.”
He was referring to the Justice Department removing Obama-era guidelines that limited federal prosecutors from pursuing marijuana charges in states that had legalized weed for medical or recreational use.
The legal marijuana movement is here, it is growing, and antiquated thinking about it from a top government bigwig is not going to stop the will of the people. According to a Gallup poll in October, 64% of Americans are in favor of marijuana legalization.
Even better, it is not going to stop the profits heading your way. Especially when it comes to the three marijuana stocks we’re detailing today…
Money Morning Director of Technology & Venture Capital Research Michael A. Robinson has been watching this burgeoning industry for years and studied the major catalysts that will keep it growing.
Here are three of his top marijuana investing picks from three different areas of the legal weed sector…
Marijuana Investing Pick No. 1: Cannabis Sativa Inc.
While there is no “household name” in the legal week sector, there are companies here that are on that trajectory. Robison favors Cannabis Sativa Inc. (CBDS), a Nevada-based company that makes a variety of cannabis products, including balms, sprays, mints, and edibles. It even has its own patented strain of pot.
In 2015, CBDS opened its first branded dispensary in Oregon. Under the name “Hi Brands,” the company models its retail locations after Apple’s.
Breaking: California Marijuana Legislation Sparks the Most Profitable Opportunity of 2018. Click Here for Details…
“The Hi brand aims to help consumers find reliable, trustworthy products in the fast-growing but highly fragmented cannabis industry,” said former CEO and presidential candidate Gary Johnson.
The company also owns iBudtender, the “Yelp of recreational marijuana.” This smartphone app directs users to nearby dispensaries and cafés and provides users with information on all kinds of cannabis products.
iBudtender is “getting rave reviews from users and industry players alike,” Michael says.
The social media play puts CBDS in an ideal position to jump across state lines as recreational marijuana is legalized in new jurisdictions.
Cannabis Sativa is a speculative play, not a foundational stock, so invest accordingly. But with a wide range of products and a chain of retail stores on the way, Cannabis Sativa is in a strong position to become a national brand – one that will reward early investors well.
Now, here are our top two marijuana stocks to buy in 2018…
Marijuana Investing Pick No. 2: Scotts Miracle-Gro Co.
Weed-growing technology is the next area where Robinson finds great value. His favorite is Scotts Miracle-Gro Co. (NYSE: SMG), which is more of a household name in the home gardening world.
This 150-year-old, $5.6 billion enterprise has made a big investment in the legal marijuana industry by diving into hydroponics. It’s a plant-growing method that’s been around for at least 400 years, but it has taken on new significance in the age of large-scale marijuana production.
Because of their specific needs for light and dark, marijuana plants are most effectively grown indoors. Hydroponics makes this process easier by using nutrient-enriched water instead of soil.
In 2014, Scotts created a subsidiary called the Hawthorne Gardening Co., which has managed the company’s interests in hydroponic technology. Two years later, Hawthorne began the process of investing a half billion dollars into hydroponics acquisitions, including large stakes in indoor lighting producer Gavita and plant supplement producer American Agritech.
Even without any further marijuana legalization on the way, this would have been a savvy move. Research & Markets projects the global hydroponics market to grow from $19.95 billion in 2015 to $27.33 billion in 2020.
But with legal marijuana consumption set to explode in the coming years, Scotts Miracle-Gro provides investors with the safety and reliability of a Fortune 1000 company with the opportunity to rake in cash from a burgeoning industry.
“Scotts is the clear choice to anchor the low-risk end of the spectrum,” Michael says. “And its early move to embrace the cannabis community could help turn it into a robust grower.”
Marijuana Investing Pick No. 3: GW Pharmaceuticals Plc.
While recreational marijuana gets the spotlight, the greatest potential for advancement – and profits – is medical marijuana.
The war on pain has gotten a new hero.
WebMD lists many ailments that can be treated with cannabis, including Crohn’s disease, glaucoma, and nausea for chemotherapy patients. It can also be effective in treating pain, which has huge implications in a nation that is currently suffering from an opioid epidemic.
And thanks to a UK-based pharmaceutical company, the next illness we tackle with cannabis may be epilepsy.
GW Pharmaceuticals Plc. (Nasdaq ADR: GWPH) has already released a cannabis-based mouth spray called Sativex to treat pain in multiple sclerosis patients. The drug was approved in the United Kingdom in 2010.
GW’s newest product, Epidiolex, is a potential breakthrough to benefit the 3 million Americans who suffer from epilepsy. The FDA fast-tracked the drug candidate to treat newborn children with the disease, and Michael expects approval to come in 2018.
In studies involving 750 children since 2015, 50% have shown a decrease in seizures – with limited side effects. GW is preparing to apply for FDA approval, setting the stage for a major windfall as this new drug changes lives – and changes attitudes about cannabis’ medical applications.
Michael has been recommending GW Pharmaceuticals since 2014. Readers who took his advice back then have enjoyed 93% gains, compared to a 39.6% return for the S&P 500.
Pot Stock Profits: $20.2 billion… that’s the amount of money expected to pour into California’s cannabis market following the state’s recent legalization of recreational marijuana. This could spark the most profitable opportunity of 2018. For details on three tiny pot stocks that could hand you the biggest gains, click here now…