What Passed Marijuana Initiatives Means for Marijuana Stocks
In just a couple of weeks, the legality of marijuana in either medical or recreational form could be legal in up to 9 more U.S. states. What does that mean for marijuana stocks? Well, right now, stock values are soaring to record high values.
Even with Big Pharma shelling out big bucks for anti-marijuana campaigns to protect their own profits, nearly all polls show that in states where marijuana is on a ballot (medical or recreational), that the opposition is far outweighed by supporters. So, now, before the election takes place on November 8, is a good time to get in on some shares of marijuana stock.
In just a month’s time, the Marijuana Index has doubled in value, according to Forbes. In the last year, the U.S. Marijuana Index has increased by 137-percent. The company with the highest stock value, American Cannabis Co. Inc. increased its value by 188-percent in a single month’s time.
New Business Opportunities
Interest in marijuana stock has increased significantly in 2016, especially as entrepreneurs see opportunities to get into the industry without actually having to own a dispensary or grow operation. Entrepreneurs are creating bicycle tours, bed and breakfast establishments, marijuana delivery services and even commercial interior decorating services to get their piece of the cash flow of the industry.
Companies specializing in marijuana investments, like MedMen, are getting busier with an increase in marijuana stock occurring. Consultation companies and investment companies in the industry are seeing franchise opportunities arise due to the increased interest in the industry.
Impact on Big Pharma
The increase in interest in the marijuana industry have already made a big impact on big pharma. More U.S. residents are turning to medical marijuana and are reducing their prescription filling practices. This means that big pharma is already losing potentially hundreds of thousands of dollars in states where marijuana is already legal in some capacity. In 2013, Medicaid costs decreased by $165.2-million as more people transition to medical marijuana to treat chronic and severe health conditions.
Medicare has also saved well over $100-million in prescription costs combined in states where medical marijuana is legal. These big losses to big pharma are causing these drug manufacturers to pour millions of dollars into funding anti-marijuana campaigns and advertisements. The downside for big pharma – most of these ballot measures are already slated to pass with flying colors.
Choosing the Right Marijuana Investment
What’s the best way to invest in the Marijuana Index? Well, that’s a great question. Technology in the marijuana industry is advancing faster than the industry itself. Roadside THC detection devices are already in the testing phases or ready-to-distribute state to help combat drugged driving. So, if you’re a tech buff, marijuana device technology is as good sector to view.
Another lucrative investment is in edibles, concentrate and large cultivation firms as all of these sectors of the marijuana industry are also more in-demand and advancing methods ahead of the industry too. My suggestion is to view major companies on the Marijuana Index, track them for a few months, and then make a proper decision with your financial advisor or industry stock expert.