Top 3 Marijuana Stocks For 2017

Marijuana is in vogue as far as becoming legalized and also in terms of making a lot of money from some people. Now, even the public can get in on the profits because they can put their money to work in a handful of marijuana related companies. While there are still not that many companies that operate in this industry, there are a few opportunities to invest.

More doors are opening to legalization following the 2016 election. While the Presidential part of the election was not welcome news for marijuana legalization advocates, there were seven states which legalized the use of marijuana for either recreational or medical purposes. This happens through propositions put on the ballot in these various states. It goes to show that people like the idea of legal marijuana, at least if the votes that have currently taken place are any indication.

Companies

Most marijuana companies are penny stocks but here are some of the companies that are going to be influenced by these changes in the political landscape are Abbvie Inc. ($ABBV), Phillip Morris ($PM), and GW Pharmaceuticals ($GWPH) that have a higher share price. These three will see impacts in different ways. Abbvie and GW Pharma are more likely to directly benefit from the medical products that they produce or are seeking approval of from the FDA.

Phillip Morris could take the news as a good news/bad news situation. While they may be able to produce some products that contain marijuana, they could also see a reduction in sales of their primary cigarette products. However, it would also be easy for them to convert some of their cigarette rolling machines into joint rolling machines to mass produce them which would put them in a prime position to capitalize on the booming marijuana industry.

In 2015 the marijuana industry saw a growth rate of 25% over the previous year. This puts it squarely near the top of all industries in terms of growth. That is a lot easier to do when you are in an industry that is moving from being illegal to one that is becoming legal. It is still on the ground level but growing rapidly. Those who put their money to work in marijuana now could potentially see a nice profit.

Tax Revenue Benefits

A few states that have already legalized the plant have seen boosts in their tax revenues at a time when many other states are desperate for cash. As a result, there is every chance that other states could see the benefits that the states which have legalized marijuana are gaining. It doesn’t take too far of a leap of logic to believe that more states would legalize marijuana in order to gain the tax benefits.

Polling provided by Gallup shows that legalization of recreational marijuana is at its strongest support levels since polling on the top began. In 1969 the support for legalized recreational marijuana was only 12%. Now the support levels enjoyed are all the way up to 60%. With that strong of a level of support it is only a matter of time before more states legalize it. This is not even to mention the possibility that a court challenge could be brought before a high court to bring legalization to a number of states all at once or even possibly the whole country.

Final Thought

Investment opportunities such as this are rarely laid out so clearly. There are many reasons to be optimistic and the time is right to get involved before this train leaves the station. However, since there is high political risk involved with this industry it is safe to say that you shouldn’t throw all your buds into one basket.

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