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When is the Right Time to Invest in Cannabis Stocks?

The cannabis stocks have off late created a lot of buzz in the stock market, for all the good reasons of course. The industry is expected to reach a whopping $21.6 billion by 2021, according to ArcView Market Research. Despite its illegal nature in the eyes of the Federal Government, it is successful in inviting a lot of market attention. Investors are optimistic about the future of the industry, and hence, a lot of new investors want to try their hands on this business. The legalization of cannabis in Canada has just added more to this optimistic outlook. While the cannabis industry is still in its infant stages, one can get on the ride to benefit out of its potential boom and busts.

However, is it the correct time to invest in these stocks or shall we wait for the best time? To be honest, there is no right time to invest as such. Furthermore, before deciding whether to go ahead with the investment or not, one must rely on valid company documents and proper market study. Taking the right decision with the right sources available is extremely important. To help you out with this decision, let’s analyze the pros and cons of investing in cannabis stocks.

 

Advantages

  • Owing to federal regulations, banks may not easily provide capital to the cannabis ventures. This is an opportunity for the stock market to take the lead and make the most money out of it.
  • As more and more countries legalize cannabis, the effective losses in the home country are compensated by investing overseas.
  • Cannabis could be safely considered a recession-proof commodity, given its inelastic demand.
  • Apart from having economic benefits, cannabis also has various medicinal values which help in creating numerous revenue streams.

 

Disadvantages

  • As the cannabis stocks are traded in OTC exchanges, so it could be difficult to obtain sufficient information in order to make a wise investment decision.
  • Although cannabis is illegal federally, the government still taxes you on the revenues generated which are as high as 70 percent (compared to current 21 percent corporation tax).
  • Without proper regulation, these stocks may also be targeted by fraudsters who lure the potential investors with false and misleading statements.
  • As the cannabis market is thoroughly fragmented, each country has their own set of regulations to be followed. This makes trading difficult for the investors.
  • As banks don’t get involved in this business, transactions are settled mainly in cash, making it vulnerable to frauds.

No investment in this world is considered risk-free. After all, the risk is the driving force behind making more money by investing little money. However, deciding in which stock to invest in and when a significant role plays in the future flow of income. One must take into account the various potential risks and weigh them with the potential risk rewards while deciding their portfolio. Only then, can we essentially reap the benefits of a right booming market, as in the case of cannabis.

Cannabis

Top Five Successful Cannabis Business Ideas

As the societal attitude towards the use of cannabis is changing every day, it also brings along substantial business opportunities in cannabis and its related products. The cannabis industry has exploded in scope as more and more states are bringing it under the legal purview. The industry is expected to reach a whopping $21.6 billion by 2021. With such tremendous growth potential, many cannabis enthusiasts are showing interest in starting cannabis ventures.

 

Although this industry has a long way to go to establish itself among the prominent ones, one can take advantage of the growth cycle and make some extra money by staying invested for a long run. Apart from the main business, cannabis ventures are certainly possible in the ancillary sectors surrounding the prime business. If you are looking to take advantage of this opportunity and start a cannabis-themed business of your own, here is a list of five promising cannabis business ideas:

 

  1. Cannabis Production

The best way to start a cannabis business venture with limited investment is by cultivating the same. The industry is set to boom with the legalization and potential growth prospects, making it the most valuable investment of the time! Although it may sound simple, growing cannabis is not an easy task to do. A number of factors are at play which needs to be emphasized before starting off. These include:

 

  • Sufficient nutrients in the proper NPK ratio usually provided via fertilizers.
  • Adequate lighting
  • Optimal watering frequency to maintain growth
  • The Ideal level of humidity, etc.

 

  1. Cannabis Dispensary

Opening a cannabis dispensary is an obvious option as the plant has got various medicinal benefits. Cannabis can helps in to reduce the nausea, chronicle pain and muscle spasms. To get started with, one should gather knowledge about the existing licensing norms and selecting a location best suitable for the purpose.

 

  1. Technology Developer

Technology in running today’s businesses is as important as providing capital. Both new as well as established ventures have to upgrade their machines, develop apps or create customer friendly software to remain a part of the race. With the growing popularity of cannabis ventures, more and more people would like to invest and make the profit via various online platforms. Hence, there seems a greater demand for software developers who can keep running these ventures smoothly.

 

  1. Cannabis Consulting Services

Many people are attracted towards the cannabis industry, but not everyone is that skilled to have all the knowledge about the potential pitfalls and strategies emerging out of it. As the industry is still set to grow, it becomes difficult to understand all of its aspects. Thus, starting a cannabis consulting venture could prove to be quite useful for people looking to reap the potential gains out of it.

 

  1. Cannabis Delivery Services

Starting a cannabis delivery service is an excellent alternative to the traditional route of dispensary services. With the changing technology, people prefer goods to be delivered to their doorstep without charging them much. This field has got the immense potential for cannabis industry as there are very less competition and high chances of establishing a profitable venture.