Whether you like it or not, cannabis is closing in on being legalized throughout the U.S.; as an investor, it presents an opportunity that can’t be pushed to the backburner any longer. For those who don’t know, there are currently four U.S. states that have legalized marijuana for recreational use with ten other states following close behind in 2016. This is also in addition to the 24 states that currently permit the use of marijuana for medicinal use.
In 2015, the legal marijuana market grew by 17% to $5.4 billion, with the industry anticipating to advance by another 25% in 2016, to hit $6.7 billion, reported by ArcView Market Research. This has resulted in the marijuana space rapidly emerging as one of the most favorable investments for investors. Also, more and more Americans are opening up to the medicinal use of cannabis, with eight of ten endorsing it, reported by the National Organization for the Reform of Marijuana Laws. The current $2.9 billion medical-marijuana industry has the potential to double in size if additional states legalize the use of medical marijuana, reported by Bank of America’s Merrill Lynch.
A big component of cannabis is that it is actively being used to treat conditions such as cancer, epilepsy, and post-traumatic stress disorder, among a number of other conditions. With the presidential elections quickly approaching in November, along with the DEA’s voting to re-schedule cannabis, the Adult Use of Marijuana Act is emerging as a leading issue on the ballots in certain states. This presents a prime opportunity to buy marijuana stocks. Listed here are four stocks that are well positioned for growth in this booming untapped sector.
mCig, Inc. (MCIG) is a leading distributor of products, technology, and services in the marijuana industry. On June 28th of this year, the company reported its unaudited financial results for its 2016 fiscal year. The company anticipates their revenues will increase $1.2 million, which amounts to a 247% hike over the prior fiscal year. Last month, the company announced that they have come to an agreement with VitaCig (VTCQ) and will transfer its current company and assets into a subsidiary of MCIG. In doing so, the company announced in a press release on Monday, August 1st 2016, that from an asset perspective, MCIG was able to keep all of the European and Asian distribution contracts that were already producing revenue. The contracts have guaranteed order requirements that have the potential over the course of three years to generate $3.9 million USD.
CEO of mCig, Inc., Paul Rosenberg stated, “We are exceptionally happy to have been able to execute this agreement on behalf of MCIG and its shareholders. The company retains all of the Research and Development associated with this brand as well as a revenue-producing pipeline for one of the most robust CBD and E-Cig markets in the world. We couldn’t be happier. MCIG continues to maintain close contact with new management of VTCQ, where we expect big things from in the near future.”
Over the last 30 trading days, MCIG has seen a price per share movement of 46.76%. The stock saw lows of $0.0293 in mid-June, to hitting a high of $0.043 at the end of June. The stock is currently building accumulation at trading channels between $0.031-$0.037.
New Colombia Resources, Inc. (NEWC) is a Colombian based company listed in the U.S. that has a joint venture that produces medical marijuana products called Sannabis SAS. On July 20th of this year, the company announced that their Sannabis products were showcased at an inaugural event for Colombia’s first medical marijuana co-operative that included 52 indigenous families that will legally grow medical cannabis. In attendance was Colombia’s Ministers of Justice and Health who endorsed the co-operative.
President of New Colombia Resources, John Campo quoted, “We expect to be the first ones with significant products to export that are Made in Colombia, we have experts in marijuana cultivation from Colorado and Washington on their way to Cauca by the end of the month to teach the indigenous community U.S. techniques and vice versa.”
The company’s most recent announcement on July 30th, 2016 they announced they will launch a pilot program with CORPROPAZ in an effort develop hemp fields over 5 different areas of Colombia to innovate new hemp industries.
Over the last month of trading NEWC has seen a significant price increase of 71.42%. NEWC hit lows of $0.0084 on June 20th while hitting highs during Tuesday’s trading session of $0.0144. What separates a company like Sannabis from other public marijuana companies is the fresh ruling of legalizing cannabis in Colombia, which presents the potential to attack an untapped market for the company to grow and prosper with.
Cara Therapeutics, Inc. (CARA) is a biotech company that focuses on developing and commercializing new chemical entities designed to ease pain and pruritus by specifically targeting peripheral kappa opioid receptors. On July 28th, 2016 the company announced they would announce their Q2 2016 financial results on Thursday, August 4th, 2016.
Over the last 90 days of trading CARA has seen a price decline of 51.67% from highs of $9.00 to lows of $4.35 in late June. With that being said, CARA seems to have bottomed out and has started to rebound over the month of July to it’s current trading price. Since July 1st, 2016, the stock has been be able to rebound 27.30% from lows of $4.80 on July 1st to highs during Tuesday’s August 2nd, 2016 trading session of $6.11.
Insys Therapeutics, Inc. (INSY) is a pharmaceutical company that develops and commercializes innovative drugs and novel drug delivery systems of therapeutic molecules is set to report their Q2 2016 results, Wednesday, August 3rd, 2016 at 10:00 a.m. EST. The company is focused on developing treatments for those who are suffer from opioid addiction and epilepsy. Over the last month of trading activity, INSY has rebounded 39.82% from lows of $11.45 at the end of June to Tuesday’s August 2, 2016 daily high of $16.01.
Now the question becomes, why are the elections and the DEA re-scheduling so pivotal for public companies in the fight to legalize marijuana? Well one, if the DEA re-schedules, cannabis moves off of the most dangerous drug list to a Schedule II drug; this will lift the restrictions for canna-biotech companies such as CARA and INSY to have more resources to conduct research and testing in the fight to treat diseases such as epilepsy and cancer.
For companies like New Colombia Resources, it will allow them a greater pool of clients and companies they can work with in the United States. Colombia has only just gotten a taste of what medical marijuana can do for an economy as a whole and New Colombia has the opportunity to be a pioneer for medical marijuana in Colombia.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
