You can invest in cannabis stocks because the cannabis industry is growing in leaps and bounds. In fact, marijuana stock investments are better than the most popular bitcoin investment that has also hit the market.
Some stock investments allow you to own a portion of the growing business. And you don't risk losing all of your hardworking income overnight as long as you don't overdo it. And you should also do your research. Now, let's look at which one of the cannabis stocks is the most ideal on the cannabis market for 2018. For one, let's exclude small penny stocks.
Canopy Growth is a Canadian company that has grown and has stocks on the market, which shows improvement for 2018. In fact, Canopy Growth is considered one of the top cannabis stocks for 2018. So, it is safe to purchase and for two main reasons. It is difficult to pin down a company's market share since the market in Canada is undergoing rapid growth.
What if the market for Canopy Growth was 20 percent as it relates to medical and recreational marijuana? It is projected that the market size each year is between $4.2 and 8.7 billion. If the market share for Canopy Growth was 20 percent, then the market size would be $13 billion. If Canopy Growth were to come in close proximity to this type of sales, then you can bet the cannabis stocks would soar to a higher level than it is right now.
Canopy Growth also has partnerships with other companies such as Constellation Brands, which makes alcoholic beverages. Constellation Brands does have a stake in the company and its stake is $245 million. You may be wondering why an alcoholic beverage company would partenr with a company that sells recreational and medical marijuana. Well Constellation Brands is planning to develop infused-beer for Canopy Growth to put on the cannabis market. And many experts believe that this cannabis product would become popular in no time.
MedReleaf is second in line to Canopy Growth, especially in its current sales. Their cannabis stocks for 2018 would be a great pick and this is for the same reason as how it was mentioned that Canopy will improve year after year, if they keep this up. The capacity of production is also expected to rise in 2018. And this is under the assumption that recreational cannabis legalization will go as it was originally planned.
MedRedleaf has improved its capacity since April 2017 and it has gone over 80 percent. The cost for production is low and this means that revenues would be increased. Using a stock offering, MedReleaf was able to raise additional cash. It is believed that the company will acquire much smaller cannabis growers. It is possible that Constellation Brands might be interested in this company for a partnership.
Third place goes to Aurora Cannabis, a company that is set to become one to be reckoned with as it makes its way into second place as a large cannabis grower in Canada. Of course, currently this is not the case as the company's sales are not as what MedReleaf and Canopy Growth has seen. However, this could definitely change over a short period of time.
Aurora Cananbis has recently announced its takeover for CanniMed Therapeutics, which is a smaller company generating 60 percent in sales as Aurora Cannabis is doing and has done. Although, Aurora Cannabis has not closed their deal with CanniMed Therapeutics, it is looking closely at it, but CanniMed does not want a takeover. It wants to remain independent, but Aurora Cannabis is determined as it locks up shareholder support for 38 percent of the outstanding shares that CanniMed has. Everything is in limbo now, until….