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4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

Buzzworthy Cannabis Stocks: A couple of years ago, I believed that cannabis could pose a considerable threat to pharmaceutical companies, and really harm their profits. This was based on marijuana’s growing popularity, increased social acceptance (check out our 5 Biggest Celebrity Stoners Who Love Their Reefer to see how far that social acceptance has come) and enhanced medicinal use.

This has proved not to be the case for now. Even the largest companies have not yet managed to turn profits. However, investors can still benefit from legal marijuana; it’s just a matter of picking the right stocks, and of course, leaving prejudice and moral questions aside.

As of now, 23 U.S. States as well as D.C. have decriminalized the use of medical marijuana, while Washington and Colorado have gone one step further by legalizing the drug for sale for recreational purposes, to adults only naturally. However, the substance remains illegal under federal law, and is considered as one of the “most dangerous” drugs by the U.S. Drug Enforcement Administration (DEA), so any investor should be aware of the risks inherent in the companies.

Most of the pot penny stocks like Medical Marijuana Inc (OTCMKTS:MJNA), have been down this year, and some companies even changed their names and ticker symbols to get a boost out of the hype of a “new” stock in a last ditch effort. Others, like American Green Inc (OTCMKTS:ERBB), and Hemp Inc (OTCMKTS:HEMP) have performed much better but are still not recommendable, in my view. As “The Wolf of Wall Street” has taught us, a general rule of thumb for investing is “keep away from penny stocks,” unless you’re an investment wizard, like Timothy Sykes.

The cannabis industry is one with a long growth path ahead, so while profits are yet to be reaped, some relatively big companies in the industry could prove to stand as attractive long-term investment options. So, without further ado, let’s take a look at the top buzzworthy cannabis stocks (and some other related ones) in the market.

I should highlight, these are not actual recommendations to either buy or sell these stocks, but a brief overview of some interesting companies that certainly deserve further research and could be considered as attractive investment options.

On the next page, my buzzworthy cannabis stocks:


 

Cannabis Sativa Inc (OTCBB:CBDS)


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Cannabis Sativa Inc (OTCBB:CBDS) is a $124.77 million market cap producer of cannabis-based oils and edibles (formerly, the company was in the tanning salon and tanning products industry).

 

Year-to-date performance: Cannabis Sativa Inc (OTCBB:CBDS) is up roughly 1000.00%.

Current Stock Price (approx.): $8.31

Price-to-sales Ratio: 146,440.00x

Advanced Cannabis Solutions Inc (OTCMKTS:CANN)

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Advanced Cannabis Solutions Inc (OTCMKTS:CANN) is a $49.47 million market cap development stage company that leases growing space and related facilities to licensed marijuana business operators for their production needs.

Year-to-date performance: Advanced Cannabis Solutions Inc (OTCMKTS:CANN) is up nearly 11.1%.

Current Stock Price (approx.): $3.61 (it reached $64.64 per share in early-March)

Price-to-sales Ratio: N/A

CannaVEST Corp (OTCMKTS:CANV)

CannaVest

CannaVEST Corp (OTCMKTS:CANV) is a $104.32 million market cap company engaged in manufacturing, marketing, and the selling of products containing hemp oil, including CBD. Its current portfolio comprises: Real Scientific Hemp Oil, Cibdex, Cibaderm, and CBD Simple.

 

Year-to-date performance: CannaVEST Corp (OTCMKTS:CANV) is down approximately 88.9%.

Current Stock Price (approx.): $3.15 (it reached $201 per share in late-February)

Price-to-sales Ratio: 47.66x

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH)

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GW Pharmaceuticals PLC – ADR (NASDAQ:GWPH) is a $1.47 billion market cap, United Kingdom-based company engaged in the research, development and commercialization of a range of cannabinoid prescription medicines to meet patient needs in a range of medical conditions. One of its products, Sativex, is used to treat spasticity related to multiple sclerosis.

 

Year-to-date performance: GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) is up about 75.7%.

Current Stock Price (approx.): $73.02

Price-to-sales Ratio: 33.51x

Median Stock Price Target: $110.00

Derivative Plays

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Other stocks will also profit enormously from the expansion of legal marijuana. Amongst these companies, we can count Calgon Carbon Corporation (NYSE:CCC), a company engaged in the manufacturing, supply, reactivation, and application of activated carbons and the manufacture of ballast water treatment, ultraviolet light disinfection, and advanced ion-exchange technologies used in the growth of marijuana plants.

Another interesting play is Potash Corp./Saskatchewan (USA) (NYSE:POT), the $27.27 billion market cap integrated fertilizer and related industrial and feed products company.

Lindsay Corporation (NYSE:LNN) will also benefit from the sale of its water management products and services.

Finally, I like Medbox Inc (OTCMKTS:MDBX), a $337.63 million market cap company that offers a machine that dispenses medication to individuals based on biometric identification (fingerprint sample).

 

Now that you know about these buzzworthy cannabis stocks, can you leave ideology aside and reap a profit from any of them? Tell us what you think.

 

Recommended Related Reading:

10 States with Lowest Substance Abuse Rates in America

The 10 States with Highest Substance Abuse Rates Crippling Their Populace