Cannabis company stocks have piqued the interest of the international mainstream, in large part due to Canada’s landmark legalization of cannabis. The hype is further boosted by consistent progress at a state level in the US, and high hopes for similar scenarios in many European nations. The consequent demand for medical, nutraceutical and recreational products will potentially drive big earnings for cannabis companies. The ones listed on stock exchanges will see the price of their stock go to the moon, making the smart stoners who bought those securities much richer and happier. Right? No, wrong.
Despite most cannabis stocks today being Canadian, the companies listed only on the Toronto Stock Exchange are not mentioned here because investing in the Canadian stock market might be complicated for an individual based in Europe. However, several Canadian companies are listed both on Toronto and New York exchanges. The stocks trading on OTC minor exchanges are not listed here either; their extreme volatility and low liquidity make them a very risky and, after all, inconvenient trade. Ok, it’s now time to take a look at the most-traded cannabis stocks and their business model.
THE TECH BUBBLE LESSON
The cannabis industry is very young. Early birds can have difficulty understanding the various business models, and financial information provided by businesses is not always straightforward and transparent. Cannabis stock prices are subject to huge fluctuations due to general market sentiment and the dynamics of worldwide cannabis reform. Furthermore, none of these cannabis companies are making profits right now, thus their stock price relies exclusively on forecasted earnings in a highly competitive market that has just started to be regulated.
Many cannabis enthusiasts, or simply money enthusiasts, are throwing their bucks at cannabis stocks, fearing missing out on big gains. But most of these people do not have investing experience, or have taken the time to research each company’s financial and business information. Going over data and corporate documents is not easy, and most people don’t have complete access to this information. As a result, the average private investor places their bet on something they don’t know. This is not necessarily bad—just be aware of it.
There are a number of services and product providers coming from outside the cannabis industry that have gotten on board since legalization gained traction. Most of these companies are considered hybrid plays since their business is not strictly focussed on the cannabis industry. But they would benefit a lot from strong growth in this sector. Plant nutrition, pest control, facility management, lighting systems, and hydroponics are some of these ancillary services and products.
The legalization of cannabis, both for recreational and medical reasons, is now being viewed favorably not just by cannabis enthusiasts but also by the medical community, lawmakers, and entrepreneurs. The cannabis industry is booming and cannabis connoisseurs and businessmen alike are wondering how to invest in marijuana.
You must be one of those who want to get into the “green revolution” and you want to know how to invest in marijuana stocks. Investing is a huge step and responsibility. Your money and your future are at stake here. You want to invest because you want to earn money. That is why it is best to do a lot of research first before getting into investing your money in marijuana stocks.
How to Invest in Marijuana?
The global cannabis industry is no doubt growing. In 2019, on data gathered by Statista, the worldwide expenditure for marijuana reached about $24 billion and was projected to increase to $63.5 billion by the year 2024. With this amazing economic growth, there is no doubt that cannabis entrepreneurs and even non-cannabis entrepreneurs are very interested in investing in marijuana stocks.
The cannabis industry is not just composed of a cannabis store or dispensary. It comprises research and development, sales and distribution, and marketing. When cannabis was legalized in several states and countries, it gained a wider acceptance for both recreational and medical use.
Before you start investing in marijuana stocks, you must get to know the product where you plan to invest your money in. Having more knowledge about the product will equip you with the important things that matter, especially if it is your first time investing.
The information above was created by Golden Seed, Inc. (“Goldenseed”) to assist with marketing our Regulation A stock offering and our company. The text and graphics above are summary in nature and do not contain all of the terms of our securities offering. In order to review all of the terms of our securities offering, you should review our offering circular that contains all of the terms, conditions, risk factors, and disclosures that you should read and understand before you invest in our company. The offering circular is available here on the U.S. Securities and Exchange Commission’s (“SEC”) website for you to read and review before you invest. The offering circular explains that we are offering 1,000,000 shares of Class B Common Stock in Goldenseed at a price of $10.00 per share with a minimum purchase of 10 shares per investor.
The rules have changed. Medical cannabis is legal in 33 states. Recreational cannabis is legal in 11 states and the District of Columbia. Anyone in the general public, not just the rich and well-connected, can now legally invest in early-stage companies like Golden Seed, Inc. because of a law called the JOBS Act, passed in 2012, which changed the rules for investing that had favored the wealthy for more than 80 years.
The legal cannabis industry is one of the fastest-growing industries in the United States. The total cannabis marketplace in the United States was $4.7 billion in 2016 and is expected to grow to more than $13.3 billion by 2020. One study noted that California alone could comprise 25% of the expected $25 billion of national cannabis sales by 2025.
No conventional fertilizers, pesticides or herbicides are ever allowed on or near our farm.
We source and nurture strains with the very best terpene and flavonoid content for flavor and potency, as chosen and helped along by our lead cultivator. We use only the freshest form of cannabis oil extractions, a CO2 super critical process on-site steps away from the living plants to ensure crisp, untouched and most importantly unprocessed cannabinoids.
We are Golden Seed.
Our small-batch signature products are niche blends that complement our staple strains. Golden Seed also feels so good because it is rich in entourage effects. The crystals dusting in most cannabis buds contain compounds known as terpenoids and cannabinoids. They have synergistic effects—working together in ways we believe THC or CBD alone cannot.
It all starts with the soil.