Marijuana Penny Stocks: 4 Reasons They're Extremely Dangerous

Few if any industries are growing as quickly as legal marijuana, and investors have taken notice. Back in June, a quick look at the largest dozen marijuana stocks at the time showed an average trailing-year return of better than 330%. While this has since tapered off a bit, many marijuana stocks are still up better than 100% on a trailing-year basis.

Sales growth in legal weed is a big reason investors are so excited. Cannabis research firm ArcView announced 34% sales growth to $6.9 billion in North America in 2016, and its forecast calls for a compound annual growth rate of 26% through 2021 in North America, leading to a market that could near $22 billion. That could presumably lead to big profits for investors.

Image source: Getty Images.

Source: Fool.com