With a variety of cannabis companies and cannabis investment instruments on offer, investors can choose between investing in the sector’s giants, investment funds, or companies like GreenStar Biosciences Corp. (CSE: GSTR)
With the legalization of therapeutic cannabis in the United States, a wave of investments has been made and many investors now want to know how to invest in cannabis. This is a market with very good prospects and there is a real enthusiasm for it. Over the years, the market has matured and now offers good channels to invest more safely.
The legalization of therapeutic cannabis worldwide is expected to continue, which means a significant expansion of the sector. In the coming years, Europe should gradually legalize cannabis too, and that’s what makes the potential of the sector so great. On the condition that you know where to invest because not all cannabis-related companies are equal. Canadian companies are taking the lead and remain ahead of American businesses for the moment.
Which Cannabis companies to buy on the stock market
There are three primary ways to invest in cannabis. One option is to invest in the giants on the market that continue to bring profits such as Canopy Growth or Aurora Cannabis. This offers less rewards but is a potentially more stable path to entering the cannabis market.
Another option is biotech companies that are trying to utilize cannabis for medication to treat cancer and other diseases. Here worth mentioning are: Insys Therapeutics, Cara Therapeutics, Arena Pharmaceuticals, Infinity Pharma. The list grows quickly with other cannabis mega brands like Tilray and Cronos Group.
You can also decide to invest in companies that sell cannabis accessories and tools such as Kush Bottles, Cannabis sativa or United Cannabis Corporation. The vast majority of these shares are speculative in nature. It is therefore necessary to know what you are doing and to know how to invest in volatile shares on the stock market. Many of these are penny stocks, such as Medical Marijuana (MJNA).
Other, more secure alternatives for investment are ETFs, investment funds, that collect several cannabis companies and trade in one, more stable stock. Most investors would probably choose ETFs or already large companies. A speculator will need to know what he or she is doing and how to manage the risk. There are several ETFs to choose from for those who prefer a safer investment: Horizons Marijuana Life Sciences Index ETF and Junior Marijuana Growers Index ETF. Another ETF that is certainly easier to find and therefore trade, is the ETFMG Alternative Harvest (MJ) Tracker.
There are also companies like GreenStar Biosciences Corp. (CSE: GSTR) that build their own portfolio of most promising cannabis companies and pose an interesting alternative to investment funds. Primarily because these companies offer enhanced resources and guidance to their investment, helping to maximize returns.
GreenStar specifically, stands out in the crowd, because having an industry experienced management team, they can already boast with an impressive record of investment decisions. Their partner tenant company Cowlitz, a producer and distributor of cannabis products, is a market leader in Washington state. They control all aspects of cannabis product life cycle and their brands brought them a revenue of $14.6 million in 2018, after just five years of operations.
GreenStar is building other successful partnership, a joint venture with Progressive Herbs Inc. called Capri. Capri is an exclusive owner of Progressive’s patent-pending cultivation technology that stands behind Cowlitz’s success. This technology makes the production process cheaper, faster and maintains much higher THC levels in the product than any other company can deliver.
Companies like GreenStar allow investors invest in top cannabis companies in North America with minimal risk and just one stock. That will allow them to benefit more easily, within a single stock and in a less speculative way.