Cannabis stocks are on fire. The United States Marijuana Index gained over 71% in the first few months of 2018. Marijuana has started to gain acceptance, with nearly 30 states in the United States legalizing it in some form.
The Canadian government is set to legalize the drug on October 17 this year. With global spending on legal cannabis estimated to reach a whopping $32B in 2020, up from $9.5B in 2017, marijuana stocks are poised to gain big time.
Here are the top cannabis stocks that have performed exceptionally well this year.
1. Canopy Growth
Canopy Growth [CGC] holds the title of being the first publicly traded Cannabis Company in North America. It has an international presence and is also listed on the Toronto Stock Exchange.
The stock was an average performer for the first half of 2018, floating between $25 to $26. But since the first week of August this year, the stock price has seen a surge. It is currently priced at $49.78 as of last week.
Canopy is one of the major players in this space with almost 3.2 million square feet of production capacity. The firm has licensed production sites in 7 out of 10 Canadian provinces. Last year, Constellation [STZ] brands acquired a 9.9% stake in Canopy to develop cannabis-based beverages.
Market Cap: 11.30B
YTD Gain: 126%
Total Gain in $ for 2018: $5.9B
Tilray [TLRY] was founded early this year, and was listed on the NASDAQ on July 19. The stock has gained 450% since it hit the market, and is currently trading at $123. This is despite a 30% decline on September 21.
Analysts believe Tilray is set to benefit as Canada prepares to open the recreational marijuana market within the next month. It also became the first company to supply cannabis oils and related products in Germany, which will boost overseas revenue as well.
Tilray has a facility in Portugal that will be used as a distribution hub for European countries.
Market Cap: 11.45B
YTD Gain: 450%
Total Gain in $ for 2018: $9.35B
3. Cronos Group
Shares of Cronos Group (CRON) are up over 61% this year. The company recently announced a partnership with Aleafia Health to evaluate if cannabis can be used for the treatment of insomnia and daytime drowsiness.
Cronos recently inked a deal with Ginkgo Bioworks, a partnership that’s expected to bring huge benefits for the medical marijuana industry. Basking under the deal, the company’s stock price has also seen a climb.
Market Cap: 2.17B
YTD Gain: 61%
Total Gain in $ for 2018: $822M
Shares of the OTC (over the counter) marijuana stock, MariMed [MRMD] have gained a mind-boggling 600% in the last 12 months. This small-cap cannabis stock is both an expert landlord that provides legal and technical know how to growers as well as a producer of premium cannabis products.
It has cannabis facilities in five states across the US, and has expanded its product line over the last year.
Market Cap: 681.35M
YTD Gain: 353%
Total Gain in $ for 2018: $531M
5. Aurora Cannabis
Aurora Cannabis [ACBFF] is another large-cap player in the marijuana market. It is one of the most popular cannabis companies. The company might be listed on a leading US exchange as early as October 2018.
Market Cap: $9.4B
YTD Gain: 32%
Total Gain in $ for 2018: $2.2B
INFOGRAPHIC: How To Invest Your Money (In 8 Simple Steps)
Plenty of savers are making do with low rates of return on their deposits—almost eroding the value of their savings. Here’s a guide on how you should invest your money and gain some great returns off it.
Stock Trading: How to Choose the Best Online Brokers
Stock trading can be a risky business but done right it is an extremely lucrative investment option which yields excellent returns. It is true that trading is quite intimidating for someone who is new to the market and its ways which gives rise to the need for a good stock broker who can handle the job and ensure that the client gets the best returns possible for the money he or she is investing. But as a new investor it is absolutely important that you choose a very good trading broker. Here are some tips that will help you make that choice better.
Understand your trading needs
Before you even look into the services of a trading broker, it is essential that you are aware of your goals and needs from your stock trading. Firstly, prioritise your investment value, short term and long-term goal, and time that you are willing to spend on your trading in order to figure out where you stand. Now, narrow down on the specific kinds of stock exchange that you are looking into. With the wide variety of options available that you can choose from, it is important to narrow down to the specific field or fields and finally look for brokers who suit your specific needs.
Have a clear talk about trading fees
It is important to have a clear-cut discussion on brokerage fee and commissions that your broker will charge you. Ask about the charges per transaction, basic account charges, account minimums and even reimbursements if and when you choose to part ways so that you can have a proper idea about how much you are about to fork out for your trading. It is a good idea to have the talk beforehand so that you do not get into an arrangement which later becomes financially burdensome for you.
Look up reviews on the broker
You would not buy a new product without checking what its previous users have to say, right? Similarly, look up your prospective brokers No matter how promising or lucrative a broker seems with the terms, make sure you check the reviews by InvestinGoal to ensure that you are actually getting a good deal and not being sweet talked into not a good broker or even worse, being conned of your money.
Ask your questions
Do not be afraid to ask whatever questions that come to your mind before you make a deal. This will help you understand your trading better and thus, to get the absolute best out of your investment. It will also help you uncover any hidden charges, non transparent clauses as well that might have later hindered the desirable growth of your stock.
Give a test run
Ask the broker if you can give a test run of your account, and his technology before you actually invest your hard earned money. Many brokers allow you to create a free account which you can use to test their platform and check out user friendliness, ease of trading, quality of tools etc and thus, make an educated decision.
Getting the right broker is definitely one step towards a good stock trading investment. Therefore, it is very important that you take utmost care in picking the very best broker for your trading needs.
3 Simple Steps To Build Your Investment Portfolio
If you’re starting out with planning your investments, chalking out your goals and how you’d like to achieve them is incredibly important. You’ll need to understand what kind of assets you’d like to invest in–be it exotic instruments like private equity or the tried and tested ones like the treasury bonds, ETFs and stocks–and invest right. Here are three key strategies to build your portfolio:
1. Building Wealth Is All About Thinking Rationally (And Smart)
Having the right mindset can play a huge role in how you build your investments. It’s simply not just about strategy. To ditch following the latest fad in the market, you need to be responsible and have a sense of social indifference–coupled with confidence and patience.
2. Invest Like A Cheapskate
If you’re pumping in $150,000 as investment, on which you incur 1% as fees, look out for ways through which you can cut them down.
If you were to cut costs by a little more than a half, that’s saving you at least $1,120 in fees every year. But that’s not it–when this saving is compounded every year, that 1% fee can tally up to a million (if saved, could win you your big ticket to becoming a millionaire!)
3. The KISS (Keep It Simple, Silly) Rule
Funnily enough, most of us think investing your way through millions demands extensive knowledge of financial instruments or strategies. Surprisingly, it’s the simplest of assets that gave the biggest investors their biggest wins. Many successful investors highlight their success to stocks, bonds and other popular alternative investments, patiently held over time.