Marijuana Stocks

This page helps investors get the latest marijuana stocks news and information including company info, stock price and portfolios.
Its an interesting time to be a stock investor in the marijuana and cannabis industry. During the early part of 2014, the marijuana stocks had an incredible rise after a lot of excitement came into the sector from the hot money. Investing in marijuana stocks does come with risk of financial loss, just like any other sector and company stock. In fact the marijuana stocks have come down in price since March/April 2014.

With the recent announcement and company trading halts on several marijuana stocks and companies by the SEC, many US stock investors are very weary of investing in marijuana stocks at the current moment. However, clarity is being provided the industry and regulators and we could be entering a great time to be an investor in marijuana stocks.

 

Green Financial SheetHowever analysing marijuana stocks for investment does propose some challenges as this whole new industry opens up to investors. At the moment there is no standard or "Gold Book" on how to evaluate the companies in the industry, the metrics that can be used and possibly a comparison chart evaluating the current companies and their potential returns for investors. As a part of this analysis, one also needs to consider the type of grow operation, crop yield per light produced, the type of equipment used and its effect on quality and quantity of yield. The facility and standard operating procedures would also be a factor to consider when choosing to invest in a marijuana producer stock.

Obviously any analysis of a marijuana stock must include looking at overhead, fixed and variable expenses. These are factors that affect a marijuana stock price and need to be taken into account when comparing the cost to grow each gram/kilo. Other factors to consider for a marijuana stock investor would be the companies share structure, debt or debenture offering and interest expense, this will eventually effect the bottom line and the potential return for shareholders or rise in stock price. A company who can reward shareholder with a dividend later on down the road would be of high interest to marijuana stock investors, especially one that makes it part of their business plan.

One metric that is hard to quantify is the quality, experience and expertise of the grower, however this is probably the most important factor to consider when evaluating the master grower and the companies chance of successful crops on large scale. Finally, the company’s marketing plan, customer acquisition costs, customer service and G&A expenses are also of extreme importance, it will impact the stock price multiple by way of potential company growth and eventually its stock price.

Please visit the page again as we will be updating it with additional information on various marijuana stocks and how to evaluate them.

You may want to look at our Stock Watch List Portfolio of marijuana stocks which are publicly traded in Canada and the US including real-time pricing, 52 week highs and lows, and recent price action.

We also have a full directory listing of companies organized by various categories.

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