One Top U.S. Marijuana Stock You Can’t Miss
We’re only a month into 2018 and marijuana stocks are already lucking out. As predicted, 2018 is turning out to be a great year for marijuana stocks. The top marijuana stocks are soaring through the stratosphere and there are good reasons why. The market for legal marijuana is beginning to take form both north and south of the 49th parallel.
We’re closing in on Canada’s full legalization day and provincial governments in the country have begun laying the groundwork for a legal retail market. Local governments in small provinces like New Brunswick and Prince Edward Island have just signed up with weed producers for cannabis supply in their provinces. A model conducive to legal retail sales is already being crafted at the federal level. The country will soon become the second in the world, after Uruguay, to legalize reefers.
Although Canada’s southern neighbor has been slow in this race, it’s trying to catch up now. Take, for instance, a new precedence set by a U.S. state last week to legalize marijuana. Instead of taking the issue to ballot like the other eight states, this state opted to take a shortcut.
Major Breakthroughs For Marijuana Industry in 2018
Vermont has become the first U.S. state to legalize recreational marijuana through legislature. It is also the first to have legalized weed in year 2018. The Green Mountain State has just got greener!
While sales are not yet allowed in the state, possession, production, and use has been legalized for recreational purposes. For pot enthusiasts, it is a major win. Not only because the state has legalized weed, but primarily because it has managed to do so despite Republican opposition.
Vermont is a Republican stronghold, and yet the state’s Democratic legislature has managed to pass the legalization bill. Republican Governor Phil Scott vetoed the same bill a year ago, saying the time was not right.
But just as the reefer lovers were beginning to lose hope, he caved into the legislature and signed the bill. For pro-legalization Vermonters, this has marked a grand victory. (Source: “‘I’m not sure the time is right now’: Vermont governor vetoes marijuana legalization bill,” Business Insider, May 24, 2017.)
Politics has marred the marijuana industry since time immemorial. Take, for instance, the past year, during which marijuana stocks were repeatedly battered at the hands of the ruling party. The Trump administration’s venomous anti-marijuana narrative has weighed down heavily on U.S. marijuana stocks, most of which have failed to achieve high valuations comparable to Canadian marijuana stocks.
While the Obama administration had a soft stance on the issue and had indicated plans for full legalization, Trump’s aides-de-camp have been anti-marijuana hardliners.
Attorney General Jeff Sessions, for instance, has gone so far as to say that marijuana poses a “very real danger” because smoking it “leads people to more drug use.” In his book, “good people don’t smoke marijuana.”
So in spite of the fact that the federal government continues to oppose its legalization, Vermont has just played hardball with the center to become the ninth state in the country to legalize pot for recreation.
It’s not too difficult to guess why the state did not launch a ballot initiative prior to legalization. The ballot results would have largely swung in favor of legalization. After all, the majority of the Americans are now pro-legalization.
Just last week, NBC News and The Wall Street Journal revealed the results of a jointly conducted nationwide survey, according to which 60% of the respondents voted in favor of marijuana legalization. Demographics-wise, the survey results were pretty predictable.
The majority who supports legalization is young (aged 18-34), male, and left-leaning. (Source: “NBC/WSJ poll: 60 percent of Americans now support marijuana legalization,” NBC News, January 24, 2018.)
With the majority turning in favor of legalization, there’s now little reason for governments to not legalize marijuana. After all, legalizing the drug also introduces a new source of tax revenue generation.
So it’s only a matter of time before more states join this “green revolution,” and from where we see it, year 2018 is already turning out to be a game-changing year for marijuana stocks.
One Top U.S. Marijuana Stock To Watch In 2018
This brings us to the real question; which marijuana stock to stock up on in this booming industry?
Frankly speaking, the majority of the options available are based out of Canada. There is an absolute dearth of good marijuana stock investments in the U.S. Most of the U.S.-based marijuana companies are, in fact, biotechnology companies making use of marijuana’s medicinal properties to create medical drugs.
Although pure play marijuana stocks are few and far between, we have managed to hunt down one top U.S. marijuana stock that has the potential to multiply in 2018.
This marijuana grower is based out of California, with additional bases in Nevada–two of the nine states where marijuana is fully legal to use. Mind you that the two states are at the forefront of the pot boom.
California was the first state to legalize weed for medical purposes back in 1996. In 2016, both California and Nevada legalized marijuana for recreational use via a ballot initiative. Last year, Nevada became the first to see legal retail of recreational weed, and beginning this year, California became the second to sell pot for adult recreation.
One of the reasons our today’s pick makes for the top U.S. marijuana stock is because of its strategic location. The other is its brand recognition.
This U.S. marijuana company is Terra Tech Corp. (OTCMKTS: TRTC), best known for its “Blüm” marijuana dispensaries and “IVXX” marijuana brands. The company produces, markets, and sells dried marijuana as well as derivative products like rolled joints and oils.
In addition to selling these products at over 200 stores in the 29 states where medical marijuana is legal, the company also runs its own dispensaries within California and Nevada.
Terra Tech’s Blüm dispensaries began selling weed for recreational adult use in Nevada on July 1, 2017. Within California, the company initiated adult-use retail on January 1, 2018.
Right now, the company is aggressively expanding its portfolio of marijuana products, which is why early investors may have a chance to reap solid gains.
As of now, two new major cultivation locations are under construction within Nevada, which will further enhance its production capabilities.
Terra Tech has witnessed a rapid double-digit growth in sales in the recent quarters. An increase of 82% in revenue was recorded in the most recent quarter.
What’s interesting is that marijuana is not the only greens it produces. Terra Tech is also popularly recognized for its third brand, “Edible Garden,” which produces farm-fresh, organic, and non-GMO green herbs like basil, cilantro, rosemary, thyme, chives, etc. The brand is currently expanding into new product lines like strawberries, peppers, and lettuce, and more, so this company is also diversified beyond marijuana.
This is one marijuana penny stock you can’t let pass.
My oft-repeated advice for marijuana stock investors is to always perform due diligence before investing in any cannabis stocks because the marijuana industry is rife with volatility. Since most marijuana companies are loss-making, their valuations are largely dependent on their future cash flows. It’s always best to pick a stock which owns a unique position in the industry.
Terra Tech is one such company which, in my view, makes for the top U.S. marijuana stock because of its geographic target market, as well as its swiftly expanding marijuana portfolio. It’s one marijuana penny stock which could surprise us with exponential gains in 2018.