Best Marijuana Penny Stocks in 2018
As more States throughout the US make the decision to legalize the recreational use of marijuana, companies involved are growing and as such, they can be invested in. Currently, these companies are being sold as penny stocks and that makes them a much higher risk but at the same time, those who are prepared for those risk have the potential for significant earnings. Here we will take a look at Nutrafuels and 8 other marijuana penny stocks that you might want to consider investing in during the remainder of the year of 2017.
Top Marijuana Penny Stocks 2017 and 2018
Which States Are Voting To Legalize The Sale Of Recreational Marijuana?
Among the states that have either already approved legislation on the legalization of recreational marijuana or are in the process of doing so include Arizona, Arkansas, California, Florida, Maine, Massachusetts, and Montana. As these states approve legislation it is sure to set a trend that is likely to be followed by many other states. As this trend grows and is more accepted across the Nation it will only serve to increase the businesses that are involved in its distribution.
The key to investing in companies and in these marijuana penny stocks is to understand which companies are poised to profit and which are positioned to fail. Some of the companies have extended debt that they are unlikely to be able to pay and this is going to lead to their failure. Other companies, on the other hand, have doubled and tripled their profits in recent months and are perfectly poised to continue to do so throughout the remainder of the year.
Profits VS Principle
Many investors find themselves facing a dilemma. As investors and business people, they invest to make profits. But some of them who have various moral or religious convictions debate over whether they should stand on principle or make decisions based on what’s likely to be highly profitable. Obviously, this is a personal question and one that only each individual investor will be able to make.
There was a time in America when alcohol was outlawed. It is highly likely that there were individuals that at the time viewed alcohol as something that went against their personal moral convictions or religious beliefs. But once Alcohol was again made legal, then in time the majority of people simply accepted it. For that reason, there are many people who can invest in companies that are involved in the production and distribution of alcohol without any issues.
It is highly likely that in time it will be the same with marijuana. At this time, there are so many people that feel that it is very wrong but without arguing either side of that debate, the fact is that it is being made legal in many states and is likely to ultimately be legal Nationwide. This means that in time it’s highly likely that the majority of people, regardless of what their personal moral beliefs are at this moment, will likely become comfortable with the idea of investing in these companies.
For that reason, those that are considering investing in these penny stocks for profits should likely do so strictly on the face of their investment value and potential. Just as American policy separates church and state, investors should likely separate profit and principle.
Looking At The Long-Term Potential
Similar to any other type of investing it is important to look at the long-term potential in order to determine the real chances of profit. Anytime an investor is looking to put their money in a company, they will want to make sure that it’s a reputable company that manages its money well. If it’s over burdened with too much debt then it’s a potential loser. If on the other hand, it has manageable debt and a solid plan in place for growing the company and its profits, then that’s a company that has good potential.
If a company has great management in place, then this is another thing that will help keep the company stable and growing. A company that is managed well and has its debt in control and a good plan for growth and profits is exactly the type of company that investors will want to look to invest in. It doesn’t necessarily take a long time to achieve profits. It is highly likely that some of these companies will see significant growth over the next two to three years.
Nutrafuels And 8 Other Marijuana Penny Stocks To Consider In 2017
This is an American company located in the state of Florida. Among their products, they produce skin care from hemp and other skin care products. As well, they also produce an oral spray and are considered among industry leaders in the manufacturing of CBD products including liquid products.
The manufacturing plant has been inspected and is approved by the Department of Agriculture in the state of Florida. They are registered with the FDA and they carry a certification by cGMP which is a third-party certification business.
2. American Cannabis Company
This Corporation was established in 2001 and it is designed to offer a variety of solutions for businesses in the US and in Canada. The company helps to advise other businesses in the industry as well as helping them with the supply of equipment for cannabis production.
3. Aurora Cannabis In Com
This company has been helping to grow and market medical marijuana in Canada. It has a 55000-foot facility and offers the highest grade medical marijuana. This year alone it is seeing a growth of over 90%.
4. Cara Therapeutics
This company which was an established in 2004 is considered to be a biopharmaceutical business that develops pharmaceuticals for the nervous system. Specifically, they have focused some of their efforts on treating adult pain. They consider some of their products to focus specifically on neuropathic and inflammatory pain. They have seen a drop in their stock value but there are many reasons to believe that this will rebound.
5. Canopy Of Growth Corporation
This company was once known as Tweed Marijuana Inc and is one of the largest producers of medical marijuana in Canada. They have a half a million square feet of indoor greenhouses and they recently purchased Bedrocan Cannabis Corp. for just under $60 million. To date, their stock is growing over 30%.
6. Medical Marijuana Inc
Even though this company was formed in 2005 it is still in the development stage. All of their services and products are focused on medical marijuana and other industrial uses for hemp. Among their products are chewing gum made with cannabis as well as extracts made to be used as a pharmaceutical medicine and with nutritional products and cosmetics.
This stock has all the appearances of having a potential for profit. It is currently seen as a leader in the Cannabis industry. Their solutions are dependable and of high quality and they are poised to help companies with their needs and safety issues in the industry.
8. Cannabis Sativa
This is a 12-year-old company based in Nevada and they went public recently. Their business is based on Natural products made with cannabis. They make creams for trauma and they are licensed for medical cannabis.
9. Zynerba Pharmaceuticals
This Corporation was established in 2007 and offers synthetic forms of cannabinoid Therapeutics. Some of their products are designed for people to use twice a day. they offer a patch that can be used in the arm or thigh and has shown its effectiveness in treating neuropathy and fibromyalgia. Their stock prices have grown moderately this year but are expected to Triple over the next couple years.
These are some of the companies with potential. You should always do your due diligence when investing. Invest in these penny stocks at your own risk.
Top Marijuana Penny Stocks going into 2018
#News 9 August 2017: This essay is top of the Google Search for crypos. Please click on the Green Heart if you are passionate about crypto. I tweet about crypto trading: BambouClub .
The Ten Rules
9 August 2017: These are my self-imposed rules for trading cryptoassets. I am a self-employed trader with no links to any enterprise. Performance of my Portfolio:
Since Entry June 2014: Portfolio is x11, i.e. has increased 1,033%. My average Bitcoin buy price (June 2014 to December 2015) was $540. Bitcoin (at its current $3,407) is x6.30, increase of 530%.
Year to Date (YTD) 2017: My portfolio is x5.33, i.e. has increased 433%. Global Cryptomarket is x6.94, increase of 594%. (From $17.7 billion to $123 billion.)
These notes are mainly for my own benefit so I can refer back to them and improve them. I will update it from time to time.
- Build the Portfolio on Bitcoin
- These are Early Days. Be Bold!
- Index Track the Top 10 Cryptoassets
- Scale Out (Take some Profits)
- Buy the Dip, and do not Sell the Dip
- Do not Over-Trade. Lock up Coins
- Let Profits Run. Cut Losses. Watch 7d Price Change not 24h or 1h
- ICOs: Do Your Own Research. Beware Herd Mentality.
- Research Micro-Caps that might rise by Orders of Magnitude. Buy them at Cryptopia. (I like Dotcoin, the Exchange’s own coin.)
- Leveraging has a Role but Be Careful as Hell. Use Stop-Limits, not simple Stops. Most traders use Bitmex Exchange.
Rule 1: Build the Portfolio on Bitcoin
Bitcoin is the mother lode. It has been good to me and will always form the main part of my crypto portfolio.
Those (mainly low-income copy & paste journalists) claiming Bitcoin is in a bubble are too lazy and/or stupid to become informed. There is no Bitcoin bubble for these reasons.
Bitcoin has had phenomenal growth in its price and MCap since inception. If we exclude other cryptoassets, Bitcoin has been the best performing asset in the world every year since 2009 through to June 2017 with the exception of 2014. It has beaten all global currencies, equities, commodities, bonds, ETFs, real estate throughout that period. Bubbles are by definition short-lived, they do not keep bubbling for eight years.
As a result it has achieved a MCap of $56 billion and this place in a global table of iconic assets.
Volumes indicate the liquidity of an asset. The greater the liquidity the easier it is to buy and sell, even when there is turmoil, and the lower the Bid-Offer spread and therefore the cost of trading. You want to avoid assets with tiny liquidity as when the shit hits the fan it will be costly to exit. Bitcoin has world-class liquidity. I run a crypoasset analysis site named Blocklink.info. Here is a screen-grab of the most liquid assets in the world.
Source: Blocklink.info. Volumes for cryptoassets are fetched from the Coinmarketcap API using the CRYPTOFINANCE Google Sheets Add-On. Volumes for stocks come from Google Finance. You can check the US stocks volume at the NASDAQ site.
Bitcoin’s trading volume is up there with the great iconic American stocks.
Bitcoin’s price will continue to be volatile, but Bitcoin is travelling along a secular bull trend road, and that spectacular volume is not going to evaporate overnight.
Every month fees are ever higher which is watertight evidence of ever greater demand to use Bitcoin. That is, people want to send transactions across the blockchain, not just trade on the exchanges.
Tx fees time-series data is maintained at Blockchair.com
Bitcoin and My Portfolio
Bitcoin holds a dominant place in my cryptoasset portfolio. As a result of recent changes in UK regulations I have allocated my entire personal pension (like a US 401k or retirement account) into Bitcoin via the XBTProvider ETN.
Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when demand for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.
Rule 2: Be Bold in these Early Days
Something extraordinary is happening. The cypto space in June 2017 is like the Internet space in 1995. It is a great opportunity, a Taleb Black Swan.
Certainly a bubble will form. (It has not formed yet.) I have lived through various real estate bubbles in the last thirty years, and the DotCom bubble of 1996–2000. It’s human nature to be cautious at first and then progressively relaxed, even reckless. My observations suggest that it is best to behave in the opposite, counter-intuitive way: commit yourself to the market with reckless abandon in the early days, and apply the brakes and get the hell out when it appears to be the later stages.
So be bold!
Rule 3: Index Track the Top 10 Cryptoassets
Until 18 May 2017 I held very little Ethereum and zero Ripple in my portfolio.
I made a great mistake in not buying Ethereum and Ripple in 2017 until 18 May. My mistake was Bitcoin Maximilism. I refused to have anything to do with Ethereum and Ripple because I didn’t like them. As a result I missed these returns.
I was applying a misguided 70–30 70–30 rule:
70% of cryptoasset portfolio in Bitcoin, 30% of portfolio in alts
Of that 30% in alts: 70% in high-cap alts (i.e. 21% of portfolio), 30% in low-cap alts (i.e. 9% of portfolio).
I came to my senses on 18 May, 2017 when I underwent an epiphany. I then made a new (self-imposed) rule : broadly track the Top 10 cryptoassets in my portfolio, regardless of my opinion about their individual merits.
I have applied a flexible, discretionary form of index-tracking since then.
I execute index-tracking manually off this Google Sheet:
At the time of writing, 20 June 207, the results of index-tracking have been great.
YTD 2017 returns for Cryptocurrencies, 18 May 2017:
My portfolio was up 106% YTD.
YTD 2017 returns for Cryptocurrencies, 20 June 2017:
My portfolio was up 281%. So in one month (18 May to 20 June) it has raced past Bitcoin, $GBTC, and Monero, and has made good ground in catching up with Global Cryptocurrencies.
I ruled myself free to apply discretion in my index-tracking. It was very clear early on that Ripple was in a secular bear market against Bitcoin from 18 May and I quickly became and stayed underweight in Ripple.
I have also been underweight in NEM throughout.
I am also currently underweight in IOTA in that I own none although it is Number 8 in the Top 10 list of Cryptoassets. I shall keep an eye on it and add it to my index-tracking portfolio if it keeps its place in the Top 10.
I have also been going underweight in Ethereum in the last couple of weeks at $350 — $360.
Is Ethereum in a bubble?
I don’t know. Applying the same metrics used above to $ETH it does pretty well, but not as well as Bitcoin. But there are clear risks and as a result I am underweight in Ethereum compared to its share of the global Cryptoasset Market Cap.
Growth (Price & MCap): Ethereum has outstanding growth in its short life, but it was only created in August 2015 so it lacks the 8-year track record of Bitcoin. This is significant. Ethereum’s explosive performance in 2017 could indeed fit into the time-frame of a bubble.
Trading Volumes & Volume/MCap Ratio: Great. Similar to Bitcoin.
Transaction Fees: All good. They are rising quickly indicating true demand for this cryptoasset.
Metrics aside, Spencer Bogart makes great sense in this thread where he describes the regulatory risk and other risks that might bring the Ethereum house of cards down. It is possible that the SEC will rule that the ICOs are illegal sale of securities. People might go to prison. It is for these reasons that I am under-allocated.
Note: If Governments decide to put a stop to the cryptoasset economy, there is a crucial distinction between Bitcoin and Ethereum. Bitcoin is truly decentralised. It has honeybadger, even cockroach qualities and is resistant to such measures. Ethereum is a registered commercial legal entity in Switzerland and can be shut down overnight.
Rule 4: Scale Out (Take Some Profits)
Anyone who has lived though a bubble knows this.
I have lived through several bubbles, namely London housing 1984–1988, DotCom in 1998–2000, London housing again 2002–2008, the Bulgarian property market (seaside apartments and ski apartments) 2004–2008.
In all cases I made great paper profits that disappeared in a matter of months. The paper profits were more than 2 million Euros in the Bulgarian property market. In none of these cases did I take profit off the table in the run-up. Christ did I regret that. I am taking profit off the table in the cryptoasset market.
Rule 5: Buy the Dip.
I like the idea of BTFD, as I truly believe in Bitcoin. BTFD! people on Twitter yell. But it has puzzled me for a while.
I have found a solution. Buy on margin at the dips. The beauty of this is that you do not need to add funds to your account, you merely avail yourself of the leverage already available. Most crypto traders use Bitmex Exchange.
I permit myself to use margin in the specific case of BTFD.
You need to get the timing of BTFD right. Beetcoin on Twitter provided this great analysis (thread) demonstrating that you should stay out for the first 48 hours of a dip and then BTFD.
n.b. You need to be clear, is this a dip or is it a secular bear market? I BTFDd relentlessly in the DOTCOM unravelling in 2000 and lost every penny in the end.
Do NOT Sell the Dip
This one I learned from my former, pre-crypto life. In 2008 when the Great Crisis hit I panicked and sold my flat in London. (I was expecting an increase in interest rates and a subsequent property crash. No one told us about the QE that the banking shysters would soon execute.) Its price is nearly triple now.
I did however BTFD a much nicer flat in the Belfast Docklands a couple of years later. Belfast is a far more lovely city than London. It cost £135,000 when at the peak of the boom it was £350,000.
If it is an established, secular bear market then face the music and STFD.
Rule 6: Don’t Overtrade. Lock up Coins
I over-trade stupidly at at tiny whims when I am bored or drunk. A solution I have found is to lock coins away out of reach.
One way is to keep Bitcoins and others in your hardware wallet. I use Trezor. It can store Bitcoin, Ethereum (+ all ERC-20 tokens), Ethereum Classic, ZCash, Litecoin, and Dash.
Another way is to lock them into terms deposits at Poloniex or Cryptopia (applies only to Dotcoin). This gives you the added benefit of earning interest on coins at astonishing interest rates that just do not exist outside crypto.
Rule 7: Let Profits Run. Cut Losses.
This guy turned $10,000 into $6 million by letting his profits run during the Ethereum run-up in the first half of 2017.
Run profits Cut Losses is hard to do exactly. In my P&L Sheet I focus on the 7d (Price Change over 7 days) to decide whether to re-allocate my portfolio according to this rule. I largely ignore 1 h and even 24 h .
Rule 8. Treat ICOs and other Examples of Herd Mentality with Care
I am sceptical about the Initial Coin Offering (ICO) craze.
In general you are better off holding Ethereum than going through the mad, greedy, FOMO process of buying ICOs.
But ICOs or coins newly released on the exchanges can be great investments. Beetcoin played the IOTA new release on Bitfinex like a master. He turned 10 Bitcoin into more than 200 Bitcoin. He bought the $IOT Over the Counter (OTC) some time before Bitfinex listed it. He was ahead of the herd.
Rule 9 Do Your Own Research. Examine Micro-Caps.
I respect this strategy.
I bought Elastic $XEL at the obscure Heat exchange. It was rather difficult discovering how to buy it because I was in this case ahead of the herd where the path was not well defined. In the end I bought it at a high price (average 31,367 Satoshis, should have got them at 25,000 Sats) as I got scammed over at Heat by a predator (Arsonic @Ars0nic on Twitter) playing the order book. We’ll see how that plays out. I think the excessive price I paid will not matter too much.
Rule 10 Be Careful as Hell with Leveraging
Obviously leveraging can work, as with the guy referenced above who has made $6 million relentless buy Ethereum on leverage since December 2016.
I take out the rare leveraged position at Bitmex Exchange.
It can also go horribly wrong when margin calls occur across the mass market.
That said, those who lost everything were not the brightest traders. They could have avoided that by using judiciously set Stop-Limit orders, rather than plain Stop orders.
We have now learned that Coinbase is making good these losses to amateur Ethereum traders. This is foolish, introduces Moral Hazard into the game, and invites greater and greater speculative activity. It will not end well.
If you liked this please click on the Green Heart and follow me on Twitter: @ BambouClub