Two Medical Marijuana Penny Stocks to Watch Out for in the Wake of Complete Weed Legalization in 2017

marijuana penny stocks
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Weed Legalization in the U.S.

With so much excitement building around the potential breakout of a legal recreational pot business open for investment, the very profitable medical marijuana business usually gets overlooked. For those investing in marijuana stocks, that’s a big mistake. The top medical marijuana penny stocks have the potential to provide even more lucrative returns.

It’s important to remember that the path to weed legalization in the U.S. is on two different tracks for medicinal and recreational marijuana. While recreational marijuana is gaining steam across the U.S., with Nevada being the latest state to enshrine the legal usage of marijuana into law, it’s still a far ways behind on medicinal marijuana.

While the majority of Americans do believe that marijuana should be legalized, both federally and statewide, the process is slow-going in terms of mass legalization. Sure, the most populous state in the country, California, has legal weed, as well as several other states and D.C., but that’s still nowhere near full acceptance. Not to mention that the drug is still illegal federally, meaning that technically, national agents could come in and close down every single recreational marijuana dispensary in the country.

But the fight for medical marijuana is much further along. We’ve already seen acceptance pass in 29 states and D.C., making it well on its way to achieving widespread mass legalization.

Not to mention that even hard-line marijuana opponents have trouble pushing back against medicinal marijuana being legal and prescribed by doctors.

This push towards weed legalization in the U.S. is of course good for companies planning to sell recreational marijuana, but it’s even better for stocks belonging to companies that can expect to see their product legalized on a far shorter and more certain timeline. Which means that some of the top marijuana penny stocks are going to be medicinal marijuana stocks.

And, as always, the key to investing in marijuana penny stocks is to have a firm handle on the news.

Two major recent developments bode well for the future of the green herb in the U.S., especially on the all-important federal level, which would really get the ball rolling should weed legalization in the U.S. hope to happen sooner rather than later.

The first development was that a bill was proposed by Senator Cory Booker (D-NJ). It was the first federal legislation in years that seeks to decriminalize marijuana on the federal level. Moreover, the bill goes even further by incentivizing states to similarly adopt pro-marijuana policies and laws, therefore paving the way towards mass acceptance on the drug as a legal good.

While the bill has essentially no chance of passing in Congress, it’s still an important step in the right direction for those interested in investing in marijuana stocks. Both medical marijuana stocks and recreational marijuana would benefit immensely from such a bill, and so any moves towards making this a reality are bound to yield big returns on marijuana stocks in the future.

The next bit of news that came about recently was that U.S. Attorney General Jeff Sessions—an avowed opponent of marijuana, who in fact is looking to extend the federal government’s reach when it comes to weed law enforcement—was made to be a bit of a fool when the task force he assigned to document the damage and prescribe future policy to deal with marijuana came back and basically said “leave things alone.” (Source: “Huff, puff, pass? Attorney general’s pot fury not echoed by task force,” Chicago Tribune, August 4, 2017.)

You see, under the Obama administration, while not directly endorsing marijuana use, the former president and his team tacitly condoned states moving towards more legalization as federal agents stayed out of the states’ way once legislation was passed.

With that blow coming towards the Sessions crusade against marijuana and Booker pushing legislation, it was a great past week for the marijuana industry.

So with that good new coming in spades, let’s take a look at the marijuana stock list that shows two medical marijuana stocks I think are two of the top medical marijuana penny stocks.

Top Medical Marijuana Penny Stocks

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Chart courtesy of StockCharts.com

Aphria Inc (TSE:APH)

Aphria has a lot going for it. It’s based out of Canada, which is set to legalize all forms of marijuana use by summer 2018. It has a novel way of growing its product—through greenhouses—that will lend it a competitive advantage. And it already supplies a good portion of medical marijuana to the market.

While 2017 has not been a good year for marijuana penny stocks in general, with many fearing that the bubble on weed stocks has burst, that makes it potentially an excellent time to gobble up one of the more promising weed stocks out there for a bargain price.

While the stock is down eight percent since the beginning of 2017, APH stock has actually gained nine percent over the past month, which may be the beginning of a rebound.

Canopy Growth Crop (TSE:WEED)

As the biggest player in the marijuana market, with a market cap of nearly $1.5 billion, it’s easy to see why such a huge and respected player in the market would be a solid penny stock.

In fact, it’s quite surprising that WEED stock is among the top medical marijuana penny stocks considering its size, but with the value of its shares well below $10.00, WEED stock is still in the penny stock phase of growth.

Canopy Growth Corp offers a strong market presence with a low cost to entry, making it one of the better ways to invest in marijuana stocks for investors looking to play long term. It too has had a rough 2017, but has gained over 12% in the past month, putting it on track for a resurgence, for investors looking to get in while the industry is down.