5 Figures to Know When Investing in Medical Marijuana Stocks
Many marijuana stocks grew in 2016, and one enjoyed particularly great gains of well above 2000 percent. However, the marijuana industry is a speculative one that's full of risk. Considering investing in medical marijuana stocks in 2017? If so, here are 5 figures you need to know before diving in.
There's a saying that the best method to get rich when a gold rush is on is to sell some shovels. That said, arguably the best number for investors who want to make good money from the gold rush that's marijuana is number 0. Firms that have no marijuana-related goods, but have the possibility to benefit by serving companies with marijuana-related products could be the best way to invest in marijuana stocks.
A very critical number for those thinking
buying medical marijuana stocks is the number of attorney generals the American federal government has: just one. In addition, the person who's likely to become the US attorney general in 2017 is Jeff Sessions, an Alabama Republican senator who's a resolute opponent of legalizing marijuana.
Should Sessions become attorney general, he could decide to rein in on the booming marijuana sector with a few strokes of the pen. Nobody knows if he is going to do so, though.
While there are several opportunities, there are some stark realities currently. The FDA has approved a three cannabinoid drugs.
Marinol, approved as long ago as in 1985, is now sold by AbbVie and helps to treat vomiting and nausea related to cancer therapy. Another cannabinoid drug, Cesamet, was approved by the FDA in 1985. However, Cesamet was recalled for commercial reasons in 1989 and later brought back to the market in 2006. It took quite some time before the FDA approved another cannabinoid as Syndros got a thumbs-up in July 2016.
Support for consumption of medical cannabis is quickly growing. Currently, the District of Columbia and 28 states now permit legal consumption of medical marijuana. In addition, a few states allow the use of the drug for recreational purposes. This increased acceptance may reduce the barriers for firms in the cannabis industry. And that gives opportunities to investors. Check out
Ackrell Capital estimates that the marijuana-based market will top $50 billion every year. However, before you become all too excited, make sure to go through the fine print. Ackrell Capital says that the market will not grow unless prohibition is done away with--i.e. the repealing of federal laws that prohibit marijuana use.