Companies directly engaged in the study, production, and sale of cannabis products, as well as companies that indirectly fund these operations, make up the marijuana industry.
As an increasing number of regions around the world legalize marijuana, conventional stock market indexes such as the Nasdaq begin to incorporate more marijuana-related businesses. After voters in many states approved marijuana legalization measures on their ballots in the recent US presidential election, the number of states that allow marijuana use in some form increased to 35.
Marijuana stocks have outperformed the wider market, as represented by the ETFMG Alternative Harvest ETF (MJ). As of February 23, 2021, MJ had given a total return of 48.9%, which was lower than the Russell 1000's total return of 21.1 percent.
Things you should keep in mind while investing in Marijuana or Weed stocks :
1. Understand the types of marijuana products.
There are two types of cannabis products: medical marijuana vs. recreational marijuana.
Cannabidiol (CBD) is a nonpsychoactive cannabinoid that differs from delta-9 tetrahydrocannabinol (THC).
2. Know the different types of marijuana stocks.
Marijuana growers
Cannabis-focused biotechs
Providers of supporting products and services
3. Understand the risks of investing in marijuana stocks.
Legal and political risks
Supply/demand imbalances
Over-the-counter stocks bear a higher risk.
Best Marijuana Stocks on the NASDAQ on their values :
The Nasdaq marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio are listed below. This will give you an idea of how much business you're getting for each dollar invested in a young company that hasn't yet achieved profitability.
NIC Inc: NIC is a digital government service provider. It supports state and local governments in offering a range of Internet-related services to businesses and residents in the United States. One of the technology tools is aimed at assisting governments in their attempts to control the marijuana industry.TYL will acquire all outstanding shares of NIC in an all-cash transaction valued at roughly $2.3 billion. The transaction is expected to close in Q2 2021.
Village Farms International: Village Farms International is a Canada-based agricultural producer. In addition to growing standard vegetables like tomatoes, bell peppers, and cucumbers, the company now also produces cannabis.
OrganiGram Holdings Inc.: OrganiGram Holdings, headquartered in Canada, is a holding company that operates as a licensed medical marijuana producer through a subsidiary.
Fastest Growing Marijuana Stocks on the NASDAQ:
These are the Nasdaq pot stocks with the most recent quarter's YOY sales rise. A company's business is rising if its revenues are increasing. This is often used to chart the success of young businesses that have yet to break even.
GrowGeneration Corp: GrowGeneration is an agricultural commodity dealer. Retail hydroponic and organic niche gardening retail stores are run by the company. Plant feed, planting soils, vegetables, advanced lighting technology, hydroponic and aquaponic equipment, and other facilities are available. GrowGeneration bought several grow warehouses and related companies in local markets throughout the United States in February. Grow Depot, a two-store chain in Maine; Grow Shop, a four-store chain of hydroponic and sustainable garden stores in Colorado and Oklahoma; and San Diego Hydroponics & Organics, a four-store chain of organic, hydroponic, and aquaponics garden centers in California, are just a handful of the acquisitions.
Cronos Group: Cronos Group is a diversified pharmaceutical corporation headquartered in Canada that develops and distributes medical cannabis and cannabis oils.
Marijuana Stocks on the NASDAQ with the highest total return:
Marijuana stocks on the Nasdaq had the highest total return over the last 12 months.
Amyris Inc: Amyris is a biotechnology company specialized in high-performance products for the health and nutrition, natural skin, and taste and scent sectors. Any of the company's consumer goods include cannabis. Amyris announced on February 22 that preliminary evidence from a pre-clinical review of its RNA COVID-19 vaccine platform was "extremely promising." The organization has claimed that it has the capacity to overcome the vaccine's production, procurement scale-up, and refrigerated storage and delivery problems.
Aphria Inc.: Canada-based Aphria is a producer, supplier, and retailer of medical marijuana products. The website www.aphriatilraytogether.com was launched on February 23 by Aphria and Tilray Inc. (TLRY), a cannabis company. The joint website will offer information about the forthcoming shareholder vote on motions to combine the two companies to both companies' shareholders. With $685 million in cumulative pro forma sales for the trailing 12 months ended December 16, 2020, the date of the proposed acquisition announcement, the merger will create the world's largest cannabis corporation.
****If you are a newbie here are some good tips****
Cannabis Words That Are Often Confused
Vocabulary is one of the most complicated aspects of understanding the marijuana industry. Fortunately, if you grasp a few primary words, it's not too challenging.
Cannabis vs. weed
Cannabis is the plant's chemical name (the genus that houses three species). Marijuana is synonymous with cannabis in the minds of investors, as are more informal nicknames like marijuana, hemp, ganja, dope, grass, 420, sticky icky, and so on.
THC vs. CBD
Cannabis contains nearly 500 chemical elements, including hundreds of cannabinoids (substances that bind to cannabinoid receptors in the body).
Delta-9 tetrahydrocannabinol (THC) and cannabidiol (CBD) are the two most commercially important cannabinoids (CBD). THC is the only psychoactive variable (i.e., makes you high).
Hemp
Hemp is a cannabis variety with a comparatively low THC content and a relatively high CBD content. It has a range of industrial applications, including supplying fabrics for rope and clothes.
We don't promote cannabis consumption.
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