With more states legalizing medical marijuana use and the new scheme in Canada (where medical marijuana laws have created a $3.4 billion opportunity), the industry is set to continue legitimizing, gaining more blue chip companies.
According to multi-millionaire Timothy Sykes, now is the time to look at the opportunities in smallcap cannabis stocks.
He cited three companies as being interesting to watch on the U.S. cannabis market: GW Pharmaceuticals (GWPH), American Green Inc. (ERBB) and Cannabis Science (CBIS). The market caps are $1.5 billion, $33 million and $57 million, respectively.
GW Pharmaceuticals creates Sativex, a cannabinoid-based medicine that treats spasticity; American Green Inc. deleps fledging companies and product ideas; and Cannabis Science focuses on turning cannabinoids into prescription medications.
Comparing the current marijuana legislation to the Alcohol Prohibition, many experts suggest marijuana will be federally legal within the next decade. Sykes advises to look for pump and dump schemes as history has seen that occur following prohibition, but also keep an eye out for emerging industry leaders.
Three tips to keep n mind when looking for outliers are to seek out companies that are doing something unique, look for growth potential as “blue chips” of this industry establish themselves, and keep an eye out for schemers.
Read the following infographic for more insight on these three medical marijuana stocks to watch, and possibly, invest in.