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
Video: Compound Interest, Explained
3 Ways To Invest From Your Smartphone For Under $5
The numbers say 80% of millennials don’t invest in stocks.
Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.
In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”
Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)
Be that as it may, here are three ways to get started for $5 or less.
What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.
How it works: Download the app and choose your investment.
Minimum investment: $5
Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”
What: iOS and Android app.
How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.
Minimum investment: $5
Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”
What: A commission-free investment app (iOS and Android).
How it works: Download and start buying stocks.
Minimum investment: Whatever stock you want to buy.
And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.
CHART: How Blockchain Powers Bitcoin
Blockchain, Bitcoin. Bitcoin, blockchain.
The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.