Many investors are jumping on the marijuana boom that is sweeping the stock market due to recent trends of state laws. This post will give you some pros and cons of the green revolution ignoring any moral beliefs that you may have.
1. 20 states have legalized medical marijuana and 2 of those have legalized recreational use
2. Many states have decriminalized cannabis laws and a suspected 4 more states are to vote on legalizing in upcoming elections
3. Colorado made $2 million from taxes in January off of recreational cannabis and is expected to earn $200 million in 2014
4. The U.S. government said it will not enforce marijuana laws in states that legalize it as long as the state keeps it under control
5. Current stock prices are low compared to the profit and expansion potential
6. Canada's Medical Marijuana Purposes Regulations (MMPR) programs rolls out April 1st
1. As more states legalize cannabis expect governments to take more from taxes and possible regulations
2. Currently there are strict rules on the growth of cannabis that limit companies impact such as Colorado requires 75% of the cannabis sold to be grown in state
3. There are many penny stocks have joined the market in an attempt to cash in on this boom
4. High risk as many companies are entering the market and may saturate prices as more states legalize cannabis
5. At any time the federal government may force states to reverse laws or take away funding to federal programs
If you are interested in green stocks here are some companies to look into. PHOT, ATTBF, ENRT, MCIG.