Two of the Best Medical Marijuana Stocks After Many States Legalize Weed in the U.S.

Marijuana Stocks
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Should You Consider Medical Marijuana Stocks?

The marijuana industry can, at times, seem laser-focused on the prospect of recreational-use legalization, and that makes sense. The next big milestone for the sector will be mass legalization for pot, allowing for all uses of the drug.

Naturally, investors are looking forward to that seismic shift in the industry, which will open up weed to tens of millions of new consumers, but that doesn’t mean they should lose sight of another key aspect of the industry: the best medical marijuana stocks, specifically the best medical marijuana stocks in the U.S.

While many people will read Attorney General Jeff Sessions’ marijuana comments and think that the U.S. may not be the ideal place to do pot business (and they’re not wrong), that by no means disqualifies some truly fantastic marijuana stocks focused on the medical side in the U.S.

It’s important to remember that the majority of U.S. residents can legally purchase medical marijuana. That fact often gets lost in the shuffle when discussing the industry.

While the U.S. is probably further behind than most developed nations in terms of its path toward full and whole legalization, many states permit medical marijuana, and investors have been prospering from these weed sanctuaries.

Investors should be keeping an eye on legalization. After all, Canadian marijuana companies are among the largest and most powerful in the world precisely because of Canada’s commitment to being the first western developed nation to fully legalize recreational marijuana. Not to mention, the country already has a burgeoning medical marijuana sector.

But that doesn’t mean that medical marijuana stocks are a waste of time, by any stretch of the imagination.

The one caveat is that, while certain U.S. medical marijuana stocks are making a killing on the market at the moment, that doesn’t mean they are not potentially susceptible to a federal crackdown on marijuana; it is still very much illegal on the federal level.

While the Barack Obama White House was content to let states sort out their own weed laws, the Donald Trump administration—and more specifically, Attorney General Sessions—has signaled that harsher marijuana policy may be coming down the pipe.

I don’t see that happening though. There’s just too much on the White House’s plate already, with immigration and political scandals, so prosecuting marijuana in states that have legalized the drug would be a losing venture for the White House.

Of course, this administration has proven that conventional wisdom is often faulty and that unpredictability is one of its default positions. That said, I would be shocked if the Trump administration decided to pursue a largely unpopular drug policy while simultaneously impeding on states’ rights.

With that in mind, let’s take a look at two of the best medical marijuana stocks around.

Best Medical Marijuana Stocks

While we’re focusing on the best medical marijuana stocks, it’s important to note that one of these picks is a Canadian-based company with operations in the United States. The best medical marijuana stocks are often Canadian-based, even if they operate in America.

1. AbbVie Inc

The pharmaceutical company AbbVie Inc (NYSE:ABBV) is one of the stronger ones headquartered in the U.S.

The company’s cannabis products include the Food and Drug Administration (FDA)-approved “Marinol,” which is given to chemotherapy patients to help reduce nausea and vomiting. It is also effective at restoring AIDS patients’ appetites. (Source: “Why Prescribe Marinol,” Marinol, last accessed February 20, 2018.)

AbbVie is one of the safer picks when it comes to the medical marijuana market.

For starters, the company is not just a marijuana producer. As such, marijuana is a strong addition to its drug portfolio, rather than its entirety. This means it will experience lower highs than marijuana-only companies, but it will also be better safeguarded against the strong swings we see in the marijuana market (January being a perfect example).

ABBV stock value has nearly doubled since the end of summer, so it’s not as if the company is slow-going in its gains. Rather, expect less drastic swings both up and down as the industry ebbs and flows.

2. Maple Leaf Green World Inc

My other pick for best medical marijuana stock is Maple Leaf Green World Inc (OTCMKTS:MGWFF, CVE:MGW).

Maple Leaf is looking to capitalize on the growth in both the U.S and Canadian medical marijuana markets.

The Canadian company currently has designs on Nevada and California—both of which are some of the most progressive states when it comes to marijuana laws, with medical marijuana having been legal in these states for nearly two decades.

Maple Leaf Green World is looking to obtain the necessary licensing to set up a corporate structure in California and is partnered with a non-profit collective in the state. The company has purchased 20 acres of property and has constructed two greenhouses. (Source: “Medical Marijuana – U.S.A.,” Maple Leaf Green World Inc, last accessed February 20, 2018.)

In Nevada, Maple Leaf Green World signed a letter of intent with BioNeva to purchase a cultivation permit allowing for a 33,500-square-foot growing facility in the city of Henderson, which sits about 15 miles away from Las Vegas.

As soon as the permit transfer is accepted by Henderson officials, construction can begin.

Maple Leaf is a marijuana penny stock, meaning it is precisely the opposite of AbbVie, in that its price is going to fluctuate a lot, alongside the overall marijuana industry. That means its potential gains could be massive, but investors would need to be willing to bear wild swings.

List of U.S. Medical Marijuana Legalized States

State
Year Legislation Passed
Alaska
1998
Arizona
2010
Arkansas
2016
California
1996
Colorado
2000
Connecticut
2012
Delaware
2011
Florida
2016
Hawaii
2000
Illinois
2013
Maine
1999
Maryland
2014
Massachusetts
2012
Michigan
2008
Minnesota
2014
Montana
2004
Nevada
2000
New Hampshire
2013
New Jersey
2010
New Mexico
2007
New York
2014
North Dakota
2016
Ohio
2016
Oregon
1998
Pennsylvania
2016
Rhode Island
2006
Vermont
2004
Washington
1998
Washington, DC
2010
West Virginia
2017

(Source: “29 Legal Medical Marijuana States and DC,” ProCon.org, November 30, 2017.)