Gone are the days when marijuana-derived products are considered taboo. Now, a lot of states in the U.S. are considering legalizing them, which could benefit the medical industry and employment sector.
As a result of the stigma crumbling down, the cannabis industry is booming. Experts believe the market will hit $31.4 billion by 2021, and leading the charge is the U.S. as it is responsible for over 90 percent of cannabis sales worldwide. The number of Americans who approve legal marijuana is increasing as time goes by, even those who come from the Conservative Party. Last year, 43 percent of Republicans were okay with the legalization of marijuana compared to 51 percent based on recent surveys.
Even known personalities such as retired boxer Mike Tyson and actor Tommy Chong have made their investments in marijuana stocks. With celebrities placing their bets on marijuana stocks, this just goes on to show that there is some real money to be made here.
Lately, CBD oils are creating a buzz. Chemical compounds called cannabinoids are present in hemp and marijuana, and they have different effects when applied in varying degree. The major ones are cannabigerolic acid, cannabichromenenic acid, cannabigerovarinic acid, tetrahydrocannabivarin acid, cannabidivarinic acid and cannabichromevarinic acid. They are targeting receptors in our body to help in daily functions such as sleeping patterns, appetite, movement, and mood.
However, cannabidiol (CBD) and tetrahydrocannabinol (THC) are the most popular cannabinoids. CBD is considered safer between the two since it does not have properties that induce hallucinations. Because of its relaxing and curing properties, CBD oils have enjoyed a surge in popularity these past years. It is actually one of the reasons why PotNetwork enjoyed record level of revenues in the past year: the company offers a wide selection of oils, creams, and balms made of CBD.
Here are the five marijuana companies that you need to know about:
PotNetwork Holding, Inc.
PotNetwork Holding, Inc. (OTCMKTS:POTN) is doing good at the moment. Because of the company’s acquisition of First Venture Capital and Diamond CBD, it has been able to post record revenues amounting to $1.7 million for the first quarter of 2017 alone. Moreover, PotNetwork’s revenue grew by 1,300 percent by the end of June 2017.
Diamond CBD offers a lot of marijuana-derived products for relaxation and even pet use—to stress its safety feature. Samples of these products are oils, vapes, dabs, and creams. People can also enjoy the benefits of CBD in snacks such as Gummy Worms, Choco Peanut Butter, Rainbow Bites, Sour Snakes and Watermelon Slices. Ex-NFL player Lawrence Taylor even collaborated with PotNetwork to produce the LT Master Pain product line, which is made from CBD oils specifically for high-performance athletes.
Another report notes the massive potential of PotNetwork Holding to gain a bigger market share due to its strategy of reaching out to its audience. Diamond CBD has joined trade shows across the United States to inform people of its products, and it has been effective so far, based on the $230,000 worth of purchase orders at the Las Vegas CHAMPS Show. The company is also targeting to launch products beyond the country and expand its presence to China, Peru, Bolivia, Chile, and Ecuador.
According to the company’s latest press release, PotNetwork Holding generated about $14.5 million in sales for 2017, bringing its average yearly revenue up to $20 million. As it ultimately aims for a national exchange listing, PotNetwork Holding is readying for a higher price target of $1.25, which also means a “valuation of 14.7x 2018E revenues of $22.8 million and 8.2x 2019E revenues of $41.1 million.”
With its strong showing based on higher than usual revenue numbers, experts see no problem why PotNetwork will not hit its target of $0.06 share price from $0.25.
Insys Therapeutics (NASDAQ:INSY) has left its mark in the medical industry after launching the Syndros drug. The Food and Drug Administration approves Syndros in treating cancer patients undergoing chemotherapy and patients who have AIDS. The company is on track to launch a new CBD oral solution developed to treat Prader-Willi syndrome.
Canopy Growth Corp. (OTCMKTS:TWMJF) takes after its name since this company is one of the world’s biggest publicly traded marijuana company. It has a market value of $7.6 billion, and with the legalization of marijuana set to be implemented this year, record growth levels can only be expected from Canopy.
Canopy’s stock price increased to $44, a record high, from Jan. 2 to 9 before it closed at $32.35 on Friday, Jan. 12.
Aurora Cannabis (TSE:ACB), like Insys, is focusing on medical marijuana. The construction of its mega facility called Aurora Sky is still ongoing, but once it is finished, it can yield up to 100,000 kilograms of cannabis annually. The company invested $100 million for the project, which is expected to be completed in the second half of 2018.
Aurora’s promise is to give affordable and flat-rate pricing with its products and even delivers for free within Canada.
Scotts Miracle-Gro (NYSE:SMG) focuses on ways how to breed marijuana plants. Their headquarters is based in Marysville, Ohio. Scotts Miracle-Gro boasts of $2.6 billion annual revenue, and it invests in its hydroponics business to find ways how to grow the marijuana plant. Its stock price is currently pegged at $106.99.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
MGM Resorts International bags partnership deal with MLB
MGM Resorts International is now the first official gaming and entertainment partner of Major League Baseball.
Google’s latest expansion plans include affordable housing
Google's latest development plans for Mountain View, California, combine a mix of office, retail, public space and housing, with affordable...
Here’s why you should pack the right travel socks
Traveling involves a lot of walking. Apart from wearing the right shoes, it’s also important that you protect your feet...
What types of investments can you make using a Roth IRA LLC?
Get more out of your Roth IRA LLC with this handy guide on what you can and cannot invest on.
Get lower hotel prices, better services with these insider tips
There are ways you can get better hotel prices and services when you travel. Take these tips from an insider...
Featured5 days ago
CEOs Fishkin and Ramsay: From financial burdens to million-dollar companies
Sponsored5 days ago
Cannabis retailer Choom secures leadership position with Ontario expansion
Featured4 days ago
4 tips to launch your marketing career with digital marketing courses
Featured5 days ago
Shanghai overtakes Hong Kong as the most expensive city in Asia for luxury
Auto4 days ago
Ford, VW discuss potential partnership after White House meeting
Business4 days ago
Select cannabis companies continue to flourish amid market downtrend
Business5 days ago
6 things to keep in mind before investing a penny in mobile apps
Auto4 days ago
8 reasons why bike-sharing startups are attracting investors