Marijuana Stocks Are Destroying Shareholder Value
The marijuana industry is budding, and investors are really beginning to take notice. According to Cowen & Co., legal marijuana sales in the U.S. have the opportunity to reach $50 billion annually by 2026, with cannabis research firm ArcView projecting compound annual growth of 26% in North America through 2021. No matter the source, few, if any, industries are growing as quickly as legal marijuana.
Underlying this sales growth potential is a discernible shift in the way the public views pot. What was once a taboo topic that a majority of folks felt should remain an illegal substance, is now a drug that 64% of respondents in Gallup's October 2017 poll believe should be legal for adults to use. Presumably, the higher the favorability for weed goes, the more pressure will be placed on lawmakers in Washington to alter its scheduling. As a reminder, marijuana is currently a Schedule I substance, putting it on par with LSD and heroin.
The result has been incredible gains for marijuana stock investors. More than a dozen pot stocks now boast market caps in excess of $200 million (i.e., out of true penny-stock and small-cap territory), and many have seen their share price double or triple over the trailing year. The green rush has paid off for investors willing to take risks.
Source: Fool.com
