Investing in marijuana seems to be the current trend as high returns have been noted across the board, however, Investors have, in the past year, been spoiled by incredibly high yields since the stock market’s bounce back after 2008. The three major U.S. indexes have tripled in value, with the NASDAQ Composite reaching almost four times what it was in 2009.
Given the high rise in stocks having nothing to with marijuana, cannabis stocks have done even more in just one year. Over the past 12 months, the average MMJ stock with a market cap above $200 million, was up by 332%. Out of the 12 stocks in this category, only one went down over a year long basis, with one other company skewing the results with a 2,363% 12-month gain. That company is Axim Biotechnologies (NASDAQOTH: AXIM).
Here’s a list of the stocks and their respective gains in the past 12 months.
Axim Biotechnologies: up 2,363%.
Aurora Cannabis (NASDAQOTH: ACBFF): up 465%.
Aphria: up 209%.
Cara Therapeutics: up 207%.
Canopy Growth Corp. (NASDAQOTH: TWMJF): up 191%.
Medical Marijuana, Inc. (NASDAQOTH: MJNA): up 175%.
Zynerba Pharmaceuticals: up 157%.
Corbus Pharmaceuticals: up 146%.
Arena Pharmaceuticals: up 43%.
Scotts Miracle-Gro: up 25%.
GW Pharmaceuticals: up 17%.
Insys Therapeutics: down 18%.
So why the giant upswing trend among marijuana stocks? The main speculation behind the giant growth is the changing perception amongst the public. As new research comes out every day, more and more people are jumping on board with the cannabis revolution. A poll from Gallup showed that in terms of favorability, marijuana popularity is over 60% in the general public. As the public becomes more comfortable with the notion of legalization, the industry continues to grow exponentially.
The main issue with investing in marijuana stands at whether or not these companies can remain profitable. It’s no question that the market will see MMJ stocks continue to rise, but as it becomes more normal, will growth suddenly slow down? Or is this just the beginning?