Often, when analysts or bloggers talk up the potential of marijuana stocks, the focus is on the consumer side of the industry. But some of the best stocks in the pot sector may be medical marijuana stocks.
Indeed, it’s on the medical side where growth likely is to be largest in the near term. Canada did legalize recreational marijuana in October, but investors promptly sold the news in response. U.S. legalization is likely to be a long slog. Attitudes are mixed in Europe — but even in legalized markets anywhere, black market (and untaxed) operators will be able to take share.
Meanwhile, approval of medical marijuana (in the U.S. and elsewhere) seems to be moving at a faster pace. In such a highly regulated market, black market and even smaller producers likely will be shut out. Quality and consistency will be key. Here, scale will matter. And those companies that win early have the best chance of becoming market leaders — and providing big gains for investors.
As always — and particularly in this space — investors need to mind the risks and size positions accordingly. But for investors who see medical marijuana stocks as the next big thing, these three are the best stocks for investors enamored with weed…
Charlotte’s Web (CWBHF)
Charlotte’s Web (OTCMKTS:CWBHF) has become one of the leading players in CBD oil (cannabidiol). And though Charlotte’s Web products are made from hemp — at least for now — instead of marijuana, the stock still looks like one of the best plays in the sector.
InvestorPlace’s Matt McCall named CWBHF (the stock also trades on the Canadian Securities Exchange, ticker CWEB) as his pick of the best stocks for 2019. And the case makes some sense. CBD oil sales are soaring and Charlotte’s Web is a market leader. As McCall pointed out, the federal farm bill in the U.S. provided a catalyst by legalizing hemp.
With so many customers yet to try CBD oil — and so many existing users attached — market growth should be huge. And while CWBHF isn’t…
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