1. Cannabis Stocks
Cannabis stock prices have been rising steadily over the past few years. In fact, they’ve risen almost 500% since 2011. That means investors who bought cannabis stocks early on could make some serious money. But if you want to get in now, you need to know what to look out for. Here are three things to watch out for before buying any cannabis stock.Cannabis stocks are companies involved in the production and distribution of cannabis products. These companies sell their product directly to consumers, dispensaries, and distributors. There are many different types of cannabis stocks including cultivators, processors, retailers, and service providers.
2. Regulation
The federal government still considers marijuana illegal under US law. And while states have begun legalizing medical and recreational use of the drug, the industry isn't fully regulated. If you're looking to invest in the space, you'll need to do your homework first. You should research the companies involved and learn about their legal status where you live.
3. Valuation
When investing, you always want to pay attention to valuation. A company's price-to-earnings ratio (P/E) is one way to measure its value. A low P/E indicates that the share price is relatively cheap compared to the company's earnings power. On the other hand, a high P/E means that investors think the company is overvalued and likely to fall in the future.
You may not be able to control whether or not the market values your investment at $0.00. But you can control how much you pay for it.
4. Marijuana Stocks
Marijuana stocks are companies that produce marijuana related products. Many marijuana stocks have been created over the years due to the legalization of marijuana across the country.
5. Medical Marijuana Stocks
Medical marijuana stocks are companies that focus on producing medical marijuana-related products. Many states have legalized medical marijuana and these companies are able to take advantage of the increased demand for medical marijuana.
6. CBD Stocks
CBD stocks are companies that produce cannabidiol (CBD) related products. CBD is considered non-psychoactive and is extracted from hemp. CBD is marketed for its therapeutic properties, wellness, and healing effects.
7. Hemp Stocks
Hemp stocks are companies that produce hemp-based products. Hemp is a type of cannabis that contains low levels of THC.
