The cannabis industry is booming, but it’s hard to know which companies will be the ones that thrive. So many good things are happening in this field, and it can often be hard to determine which ones are worth investing in. In this article, we look unbiasedly at promising cannabis stocks and help you decide if any are worth your money.
Many people will argue that investing is better left up to someone versed in the field who knows what they’re doing. Still, there’s little reason for you not to invest when someone else could have made a great investment opportunity disappear because they were too busy worrying about their job instead. If you want to invest in the cannabis industry, some companies are worth looking into.
Why Do People Invest In The Cannabis Industry?
The cannabis industry has been growing exponentially, and as it grows more and more popular, so does the market. There’s no chance this industry will slow down soon, and the number of companies looking to profit from it is also growing greatly.
If you invest in promising cannabis stocks when they’re still relatively small, you could see a huge increase in value over the same amount of time as a company that got involved later on. You don’t need special skills or experience to do this either – just some information, which we will provide.
What Are Some Of The Biggest Companies In The Cannabis Industry?
Promising cannabis stocks are exploding at a great rate, and there are some huge names in this field, but we’ll be looking at three of the biggest names in the cannabis industry that should interest you. Here they are:
1. GW Pharmaceuticals (GWPH)
GW Pharmaceuticals is quickly becoming one of the biggest players in this industry. This company focuses on developing and producing cannabinoid-based drugs to treat cancer patients suffering from nausea and vomiting caused by chemotherapy. In the last few years, GW Pharma has been burning through $200-300 million dollars yearly to fund their research, which they hope will bring them better results and a bigger market share.
2. Insys Therapeutics (INSY)
There are plenty of big names in the industry, but Insys Therapeutics is one of the biggest and most profitable. They have made a name for themselves by producing and selling synthetic cannabis with no THC to ease cancer patients’ pain. This is just one of the drugs they develop and sell, but they also sell their version of synthetic THC. One doctor even called their generic Fentanyl “extremely dangerous.” They’ve been around since 1990, and up until 2013, they were focused on developing drugs to treat neurological diseases like Alzheimer’s and cancer pain relief as well as autoimmune diseases like arthritis.
3. GW Pharma (GWPH)
GW Pharma is focused on developing and selling cannabinoid-based prescription drugs for cancer pain relief, epilepsy and autism. These promising cannabis stocks have already been involved in some high-profile partnerships with large pharmaceutical like Bayer AG, which partnered with them in 2017 to jointly develop and sell new medicines based on cannabinoids extracted from the cannabis plant. In 2016, GW Pharma got a license from the DEA to grow domestic marijuana plants for research purposes. They plan to use this as a platform for clinical trials on all their products.
What Factors Should You Consider When Choosing Promising Cannabis Stocks To Invest In?
To put your money into a company, you should consider your risk and the potential reward. For every cannabis stock, something can go right, but plenty of things can go wrong. Here’s what you need to know:
1. Potential For Success And Profitability:
You would be wise to look at any company’s success and profitability before trying to put your money into it. The more profitable the company is now, the more likely it will be in the future. To determine if a company will prosper in the future, you can look to see what kind of potential they have for growth. It’s important to look at their past performance and projected growth.
2. Market Share:
The more of the market a promising cannabis stocks owns, the better its position is to keep raking in profits. In 2016, GW Pharma reached a $4 billion market cap after it announced that it had agreed with Bayer AG to develop and sell new medicines based on cannabinoids extracted from the cannabis plant. The agreement was based on an existing partnership between both companies where Bayer AG supplied GW with an orphan drug candidate called Nexavar, which they used to create Sative oral spray, which is used to relieve pain in multiple sclerosis dysfunction.
3. Intense Competition:
It will be hard to stay ahead of the competition, but if you want to make a name in this industry, you must be able to. You’ll also want to think about how unique their product is. Plenty of companies focus on this niche market, but it would be nice if your product were one of the few that stands out.
4. Management And Shareholders Trust:
You should look at the people behind a company and what kind of track record they have with it. Some of the most successful people run the world’s biggest promising cannabis stocks. The management team should have good track records and be willing to use a lot of money to ensure their product gets off the ground. If you’re looking for a promising cannabis stock with strong shareholders, you might want to check out how constructive its analysts are.
The cannabis industry will keep growing as more people realize the potential of this drug and the potential profits that can be made by investing in it. If you want to get your share of earnings, you should take a look at the companies we highlighted for providing the best futures for investors. You never know when a company might suddenly stop a stock from dropping in value, but if you stick with companies with solid management and shareholders’ trust, you can be more confident in your investments.