http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments Are Marijuana Companies Good Investments? Tilray is the second largest publicly traded marijuana company. Their sales have doubled in the last year and the stock recently went up 17%. With more and more states legalizing marijuana for medical or even recreational purposes, are marijuana companies good investments? Business Insider writes that weed stocks are surging. Shares of Tilray – the second-largest publicly traded marijuana stock – were up more than 17% Wednesday after the Canadian company posted quarterly sales nearly double a year ago. But, is it the growth of sales that drives the stock price up, or something else? Tilray is now valued at $4.9 billion, despite its losses, and could keep growing thanks to investments from major players in other sectors, especially alcoholic beverages. Constellation Brands – which makes Corona and Modelo, among other popular drinks – catalyzed a huge rally in Canopy Growth’s stock through the announcement of two recent investments. “We expect more alcoholic beverage companies to announce deals with Canadian LPs over the course of the year, and view Tilray as an attractive partner for an alcohol company looking for exposure to cannabis,” Vivien Azer, an analyst at Cowen, said in a note to clients on Wednesday. Shares of Tilray are up 164% since the company’s IPO in July. It would appear that companies in the alcoholic beverage business do not want to be left behind if the marijuana business really takes off. Or perhaps they are just hedging their bets. Either way, it appears that at least part of the run in price of Tilray is from investment by the folks who also sell alcohol. Long Term Value of Marijuana Stocks What is the intrinsic value of a marijuana stock? The value of a marijuana stock will go up as its sales increase. And, sales will go up as more and more jurisdictions legalize marijuana. Where is pot legal today and where might it be legal tomorrow?

1. ARE MARIJUANA COMPANIES GOOD
INVESTMENTS?
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Tilray is the second largest publicly
traded marijuana company.

3. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Their sales have doubled in the last year
and the stock recently went up 17%.

4. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
With more and more states legalizing
marijuana for medical or even
recreational purposes, are marijuana
companies good investments?

5. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Business Insider writes that weed stocks
are surging.

6. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Shares of Tilray – the second-largest
publicly traded marijuana stock –
were up more than 17% Wednesday
after the Canadian company posted
quarterly sales nearly double a year
ago.

7. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
But, is it the growth of sales that
drives the stock price up, or
something else?

8. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Tilray is now valued at $4.9 billion,
despite its losses, and could keep
growing thanks to investments from
major players in other sectors,
especially alcoholic beverages.

9. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Constellation Brands – which makes
Corona and Modelo, among other
popular drinks – catalyzed a huge rally in
Canopy Growth’s stock through the
announcement of two recent
investments.

10. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
“We expect more alcoholic beverage
companies to announce deals with
Canadian LPs over the course of the
year

11. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
and view Tilray as an attractive partner
for an alcohol company looking for
exposure to cannabis,” Vivien Azer, an
analyst at Cowen, said in a note to clients
on Wednesday.

12. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Shares of Tilray are up 164% since
the company’s IPO in July.

13. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
It would appear that companies in the
alcoholic beverage business do not
want to be left behind if the marijuana
business really takes off.

14. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Or perhaps they are just hedging their
bets.

15. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Either way, it appears that at least
part of the run in price of Tilray is
from investment by the folks who
also sell alcohol.

16. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Long Term Value of
Marijuana Stocks

17. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
What is the intrinsic value of a
marijuana stock?

18. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
The value of a marijuana stock will go up
as its sales increase.

19. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
And, sales will go up as more and
more jurisdictions legalize marijuana.

20. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Where is pot legal today and where might
it be legal tomorrow?

21. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Recreational Pot in Canada

22. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Forbes reports that marijuana is
now legal in Canada.

23. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
This fall, Canada is set to become
the 2nd nation in the world to allow
legal consumption of recreational
marijuana.

24. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
The Cannabis Act, passed by the
Canadian Senate on June 21, controls
and regulates the growth, distribution and
sale of recreational marijuana in Canada.

25. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Prime Minister Justin Trudeau
expects everything to be in place for
consumption to begin on October 17.

26. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
The population of Canada is 36
million people, just a couple of million
fewer than live in California.

27. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Recreational Pot in the USA

28. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Business Insider has a map showing
where marijuana is legal for medical
use and where marijuana is legal
for recreational use in the USA.

29. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Nine states and Washington, DC,
have legalized marijuana for
recreational use – no doctor’s letter
required – for adults over the age of
21.

30. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Legal marijuana sales exploded to
$9.7 billion in North America in 2017,
according to a report from Arcview
Market Research and BDS Analytics.

31. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
That represents a 33% increase over
2016, shattering previous expectations
about how quickly the marijuana industry
could grow in the face of federal
prohibition.

32. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
The report also predicted the legal
marijuana market will reach $24.5
billion in sales – a 28% annual
compound growth rate – by 2021, as
more state-legal markets come
online.

33. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
It would appear that recreational
marijuana is a growth industry, which
explains why the folks who sell
alcohol are buying a few shares of
the competition just in case.

34. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
States where pot is legal for recreational
use:

35. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Alaska
California
Colorado
Maine
Massachusetts
Nevada
Oregon
Vermont
Washington
District of
Colombia

36. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Federal Law versus State
Law

37. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
Federal law prohibits marijuana use
for recreational purposes.

38. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
But, in states where pot is legal, local law
enforcement agencies do not arrest
anyone and Federal Authorities have
followed state procedures in these
jurisdictions.

39. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
As such it would appear that more
and more states will legalize
marijuana and increase the available
market for marijuana companies.

40. http://profitableinvestingtips.com/stock-investing/are-marijuana-companies-good-investments
In the end, the marijuana companies
that will be good investments will be
those which manage their cost of
production, compete well on quality
and price, and market most
effectively. Right now, it is not clear
who that will be!