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
Best 2017 Penny Stock Brokers
Penny stocks brokers are now becoming cheaper thus making it easier for retail investors to invest their savings. It can be frustrating to find a good trading platform and depends on the type of stocks you plan to trade (whether pinks sheets or OTC), the amount of capital available to you, and how frequently you trade. Each week I receive dozens of emails inquiring about which brokerage to use but it is a challenging question to answer since it involves multiple factors.
3 Important Things to Look Out For
Surcharges: Depending on your broker, most add surcharges to shares less than a dollar. TradeKing charges an additional 1 cent for every share below $2 meaning that if you buy 5,000 shares it will cost you an additional $50. If you don't keep close watch on those small charges they can easily add up and eat into your potential profits. You should choose a brokerage with a flat commission rate or one that offers sizeable discounts on large orders. For instance eTrade, Charles Schwab, and TD Ameritrade all offer either flat fees or massive discounts and no hidden fees.
Trading Restrictions: You should be capable of trading shares through an online platform and be wary of firms that force you to make your trades over the phone. Some brokers have restrictions in place especially with regards to issues such as short selling your penny stocks.
Volume Restrictions: The number of shares you are ideally allowed to trade is unlimited.
Different brokers have different account minimums, trade restrictions, commissions, and fees. Other important considerations include market maker routes, executions, software/trading platforms, and the quality of customer service. The greatest hindrance is not having sufficient starting capital and brokerages don't like to deal with poor traders. If you live outside the U.S. in a country such as the U.K. or Australia, finding a penny stock friendly broker will be harder.
Penny stocks have had a negative reputation over the years and for good reason. The vast majority (90%) of those companies represent poor investments that are not something anyone would like to put in a 401k. Most of them are simply shell companies created with a sole purpose of 'pump and dump'.
Etrade is an obvious top choice overall since it charges a flat fee and offers outstanding trading software. Currently, Etrade has a promotion where traders with accounts of over $10,000 can trade free for the first 60 days.
The minimum deposit for a cash account is $500 and $2,000 for a margin account. Discounts are offered on large orders and penny stocks have no surcharges. Great research investment tools are available and the executions are very fast.
It is best suited for traders that trade frequently due to the tiered pricing structure, meaning that it is not recommended for non-active investors since they will have to pay additional commissions. The customer service is below average when compared to others while 24/7 phone and email support is available. The basics of the stock market are taught through video lessons.
The major limitation is that it does not accept traders from some countries. It is currently Tim Sykes favorite broker.
Interactive Brokers might have poor customer support but are still your best bet if you plan to short shares priced below $2. They have some of the best borrows for stocks even though shares for shorting go fast.
The trading platform is hard to learn and is not recommended for beginner investors. The $10,000 account minimum locks out most retail traders. Interactive Brokers has a plat pricing structure of $0.005 for every share traded depending on volume.
Fees are levied for canceling or modifying an order and a monthly inactivity fee of $20 is charged. Unless you are a day trader, the commissions can be expensive. Interactive Brokers traders comprise mainly of massive institutions and high net worth individuals.
Unlike Etrade, Interactive Brokers accepts international traders and does not discriminate against particular countries.
This broker has been operating for more than 40 years. In 2009, Ameritrade took over Thinkorswim. The broker has a solid trading platform with helpful charting tools as well as tutorial options to help you get started. In spite of this, their trading platform has experienced minor technical errors in the past leaving those customers that were looking to exit trades quite angry.
The broker has great, 24/7 customer support. You can have your emails replied to within as little as 30 minutes. TD Ameritrade has no minimum account deposit and no surcharges are levied on shares priced less than $5.
TD Ameritrade has no inactivity or monthly fees making it perfect for long term investors. Trade execution is great and the borrows are decent if you would like to short penny stocks. The broker offers free paper trading demo, which is great for beginners looking to test strategies and get a feel of the market.
The main drawback of TD Ameritrade is the $9.99 fee, which is much higher than that charged by other brokers. It can be argued that by charging more than the competition they are able to offer better customer support or it could be that they are greedy like the rest of the players on Wall Street.
One of the best things about SureTrader is the chance to bypass the pattern day trader rule since it is located offshore in the Bahamas. The pattern day trader rule is a rule set by the SEC that does not permit traders with accounts below $25,000 from executing over 4 or 5 day trades over a 5-day business period. This can be quite annoying and makes it hard for traders to grow their accounts fast but still protects day traders from losing money.
SureTrader has relatively poor customer support since it has very few customer support representatives to service all of its clients many of whom are inexperienced that don't even know how to place orders. SureTrader is a small company and according to their LinkedIn profile, the have only about 6 employees.
Recently, SureTrader's CEO, Guy Gentille was indicted by the SEC for manipulating penny stocks. It should be noted that while SureTrader was not involved in the schemes this scandal has tainted their reputation. Hearing such news about a company's CEO would make any trader feel uneasy and for this reason, trading over $2,000 with them is not recommended.
The account minimum is $500 and the charges are $4.95 for every trade for up to 1,000 shares but an ECN fee of .003 is charged for routing. The leverage currently offered is 6-1 and future plans are to increase this to 20-1.
Hard to short stocks enjoy good borrows and a massive short sell list of 10,000 symbols is available. It is a great option for the penny stock traders outside the US who have limited capital and who cannot afford or are not able to open accounts with the more reputable brokers such as Etrade.
The information pertaining to this company available on Google is very limited and while the company was established in 2000, it does not even have a Wikipedia page.
ChoiceTrade is better suited to OTC stocks and only costs $7 for every OTC trade. The broker has a volume surcharge of 1 percent for any trade over 500,000 shares. There is no account minimum but an inactivity fee of $30 is charged for every quarter.
ChoiceTrade's free web platform is a bit too basic and you have to pay $15 monthly to access the advanced platform. ChoiceTrade offers promotion codes to new clients on rare occasions.
Too many people are eager to start day trading and especially teenagers. People will see Instagram photos of successful traders advertising their lavish lifestyle, traveling to various beautiful and exotic location and want to be like them. They want to start making money immediately.
However, this is not how it works. Patience is needed and you should paper trade for not less than 3 months. Keep in mind that you need to learn before your earn. Once you are ready, it is advisable that you start trading with not less than $2,000. Interactive Brokers and Etrade are the top 2 online penny stock brokers with great reputations.