Despite its explosive gains over the past few weeks, the marijuana industry, in many ways, is still in its infancy. Medical and recreational cannabis sales are forecast to climb to a monstrous $146.4 billion by the end of 2025, according to Grand View Research. Legal marijuana is thus on pace to eclipse both the soda and tobacco industries in terms of value in the next decade.
Even so, investors in this nascent industry still face two major challenges. First off, the top Canadian pot stocks listed on major U.S. exchanges — Canopy Growth Corporation(NYSE:CGC), Cronos Group (NASDAQ:CRON), and Tilray (NASDAQ:TLRY) — all sport valuations that seem to suggest that much of this projected upside is already baked in at this point.
The second problem is that the remaining players typically trade on either the less liquid Toronto Stock Exchange or on over-the-counter markets that don’t require stringent financial reporting.
So where can long-term-oriented investors park their capital to participate in this powerful emerging trend…
Well, the best opportunities at this point are probably in this second category of pot stocks — those that have yet to list on a top U.S. exchange. While risky, there are a handful of promising cannabis stocks on these exchanges tied to legitimate and thriving businesses.
Keeping with this theme, MariMed Inc. (NASDAQOTH:MRMD)and OrganiGram Holdings (NASDAQOTH:OGRMF) are two names in this group that arguably stand out from the crowd.
Right place, right time
Even without legalization at the federal level, a stunning 73% of the legal pot market is still expected to emanate from the United States all the way out to 2022. And if President Trump or his successor spearheads a movement to change federal policy, the U.S. marijuana market could explode higher in terms of value over the next decade.
Investors on the hunt for compelling growth opportunities in the cannabis space might therefore want to own at least one U.S.-based company. Although there are several to choose from at the moment, MariMed is arguably one of the most attractive for a few reasons.
MariMed is a small-cap company with two core businesses. On the one hand, it acts as a professional management firm that advises clients on both how to obtain cannabis licenses and how to develop and manage state-of-the-art grow/distribution facilities. Boiling this statement down, MariMed is essentially a…
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