For years the only way to invest into marijuana companies in the United States was through Canadian exchanges, or on the Over the Counter exchanges which are full of pump and dump schemes. Since the legalization movement has gained momentum there has been increasing opportunities to make plays into the U.S. cannabis markets through ancillary companies. Recently changes have allowed companies to be listed directly on the U.S. stock exchanges like the Nasdaq.
Ancillary Cannabis Stock Plays
Until recently investors have been able to invest into U.S. companies that are involved in the cannabis industry through ancillary businesses. Some of the more notable ones are AERO which is now owned by Scotts, the makers of Miracle Gro. All of these companies, and there are tons of them, are listed on OTC markets. OTC markets carry a much greater risk than ones like the Nasdaq and NYSE, because of a lack of any oversight and regulation. Many cannabis companies end up being pump and dump marketing schemes that leave the majority of investors broke while a select few reap tons of profit. The lack of oversight and pump and dump nature of OTC markets has scared away traditional investors that do not trust OTC’s. Despite all of these pump and dump schemes there are good choices available if you conduct your due diligence and make calculated risks. Technical420.com is an excellent resource for those looking to invest in the cannabis space. It’s sole mission is to cover the markets related to cannabis. The founder of Technical 420, Michael Berger, was on The Marijuana Solution and is a frequent panelist on investing in cannabis around the country. For those that are more risk adverse, there is good news.
Marijuana Companies Listed on Nasdaq
Recently a Canadian cannabis company, Cronos Group, was listed on the Nasdaq echange under the ticker CRON. Fitting name for a company that produces and sells medical marijuana. This was big news in the financial world with outlets like Forbes covering the news. Most investing experts expect this to be the first of many to come and that CRON will only continue to trade higher. There are also marijuana ETF’s like the Prime Alternative Harvest Index which CRON is the top stock of the group that contains Big Pharma, Tobacco and other Cannabis Stocks.