In this report, we’ll uncover our six favorite pot stocks that were hand-selected using our money system.
This money system is designed for wealth seekers. It uses the immense power of big data to analyze numerous industries and thousands of stocks.
The system puts you in the driver’s seat and ahead of the investing game - regardless of what mainstream investments deliver. Each and every stock is primed to shoot higher and reward shareholders.
The pot industry is exploding, and it’s still in the early stages. So if you’re serious about receiving big stock returns every year, you need to check out the stocks below.
But first, let’s look at why the pot industry will rapidly grow and how to limit your risk when buying into it.
Growing Like a Weed
America’s marijuana market should hit $7.1 billion this year. That represents 26% growth over 2015’s market.
That kind of progression is extraordinary...
But hold onto your hash pipes, because it isn’t done yet. By 2026 leading investment bank Cowen & Co. expects the marijuana industry to grow to $50 billion!
But how do we get there? Well, one state at a time
In the past six years, 15 states have legalized medical marijuana. This year, Pennsylvania and Ohio joined that growing list. And four states - Washington, Alaska, Oregon and Colorado - have joined the District of Columbia in legalizing marijuana for recreational use.
Why? Legalizing marijuana is gaining public interest... though that alone won’t bring it to your neighborhood. A huge issue that’s pushing it forward is taxes.
Tax Windfall
Colorado took in $70 million in “green” taxes during its 2014 - 2015 fiscal year. And it’s expected to climb to $135 million this year.
Those figures should help you understand why the number of states legalizing cannabis could increase even more this year. This November, up to 10 states will vote on the legalization of either medical or recreational marijuana.
In California, medical marijuana is currently legal, while recreational marijuana is not. But Californians have put recreational pot use on the November ballot. If it passes, Cowen says that alone could triple the nation’s legal marijuana industry.
That’s a huge opportunity.
As the researchers at Cowen like to point out... there are now more marijuana dispensaries in Colorado than there are Starbucks coffee shops.
“We estimate there could be as many as 17,000 legal cannabis retailers in the U.S. upon full legalization,” Cowen said.
This growing industry is in its early stages, and its potential is huge.
It’s one of the best times to invest. But with many pot stocks out there today, you need to tread lightly. There will be huge winners... and losers, too. That’s why it’s best to diversify.
Limit Your Risk
Putting all your money into just one pot stock is risky. If it goes belly-up, you’d lose all your money. So limit your risk by investing in multiple companies.
Our money system has picked six great stocks. But many of them are small. Their prices can jump all over the place.
There’s huge potential with the companies below... But don’t bet the farm on just one.
Six Top Pot Stocks for 2017
AbbVie
Ticker: ABBV (NYSE)
This is the largest of our top six picks. AbbVie is a diversified biotech company that sells hundreds of products around the world. And one of its drugs, Marinol, is made out of a synthetic form of tetrahydrocannabinol, or THC, a primary component of cannabis.
Marinol is FDA-approved and treats nausea in chemotherapy patients. It’s also used for patients with a loss of appetite.
While this THC drug is a success, it’s only a small blip in AbbVie’s total revenue right now... But it’s opening the door for future marijuana-related drugs. AbbVie is an established player in the field and one of the safest ways to gain exposure to pot-related profits.
Scotts Miracle-Gro
Ticker: SMG (NYSE)
Scotts Miracle-Gro is a powerful way to indirectly play the marijuana boom. The business provides lawn and garden products worldwide. And its products are already being used to grow marijuana.
One area that Scotts is expanding into is lighting and hydroponics. The business bought a Dutch “grow lighting” company for $136 million. And it’s inked deals with indoor growing businesses in California, Colorado and Arizona.
Scotts will generate more revenue as the marijuana industry expands. And in the meantime, shareholders collect a healthy 2.4% dividend yield.
GW Pharmaceuticals
Ticker:GWPH (Nasdaq)
GW Pharmaceuticals develops cannabis prescription medicines. The company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development.
One of GW’s major drugs is Epidiolex. It’s an oral medicine that treats refractory childhood epilepsies. Another treatment GW provides is cancer pain relief.
GW is constantly researching and developing new cannabis-related drugs. As pot is decriminalized across the board, GW will have an easier time approving its drugs. This will push new revenue to shareholders.
Insys Therapeutics
Ticker: INSY (Nasdaq)
Insys Therapeutics has multiple FDA-approved cannabis-related drugs. One drug is Subsys, a sublingual fentanyl spray that treats cancer pain. And Insys’ lead product is the orally taken medication Syndros.
Insys continues to develop innovative products. It has multiple cannabis-related drugs in the pipeline.
Insys is valued around a billion dollars today, and its annual revenue keeps climbing. The business could easily triple as the marijuana market continues to expand.
Cara Therapeutics
Ticker: CARA (Nasdaq)
Cara Therapeutics is a biotech company focused on pain relief. The business is bent on pinpointing certain effects that cannabis has on our brains. This allows it to develop pain-relief drugs.
Cara is a small company. It’s valued at less than $300 million, and it’s a ways out from turning a profit. Still, the profit potential is huge. The business could take off if the drugs in its pipeline are successful.
Zynerba Pharmaceuticals
Ticker: ZYNE (Nasdaq)
Still in its early stages, Zynerba Pharmaceuticals is an even smaller company than Cara Therapeutics. It’s about half the size but has a great deal of potential.
The business focuses on developing synthetic cannabis-related drugs that are delivered through your skin. Zynerba will unlock enormous profits for shareholders as its drugs gain FDA approval.
These six stocks will thrive as pot is legalized. They’re listed in order by size, largest to smallest. So to limit price swings, consider putting more into the larger companies. And don’t put all your money into one stock.
The marijuana industry is in its early stages. These companies will make billions of dollars. And early investors will have the best chance for success and outsized profits.
Good investing,
Brian Kehm
Research Associate
The Oxford Club