Entering text into the input field will update the search result below

Is Now The Time To Pounce On The Pot Business?

Mar. 02, 2015 3:09 PM ETABBV, AMMJ, BMY, CBIS, GWPH, MJNA8 Comments
Nicholas Kitonyi profile picture
Nicholas Kitonyi


  • Medical marijuana is a promising investment opportunity in the cannabis market, but faces the challenge of legalization in the U.S.
  • Mores states are legalizing the use of cannabis which brings it closer to federal legalization. D.C. is the latest state to do so. This could trigger interest from big pharma companies.
  • The legal process is opening up new opportunities for companies in the licensing and planning consultancy services market.
  • Some analysts predict that medical marijuana market could be worth more than $12.5 billion in revenues by the year 2020, with the overall cannabis market estimated at $35 billion.


The U.S. District of Columbia joined a handful of other states that have legalized controlled usage of marijuana, "cannabis" or "pot". Oregon is expected to join the list in July this year, and several other states are tipped to show interest by the end of the year. Nonetheless, the product still faces a huge challenge toward national legalization in the country.

The year 2013-2014 was marked with a flurry of activity in the medical marijuana industry. Several investors expressed optimism in medical marijuana stocks in the process driving their prices to record highs, which analysts now identify as overvalued, particularly due to low revenue levels.

However, the industry seems to have taken a step back this year as many stocks continue to lose significant amount of the gains garnered last year.

Nonetheless, recent developments suggest that the legalization process in the cannabis market could be about to speed up, which then opens doors for investors, companies and consumers to drive growth. By the rule of thumb, increased legalization is likely to trigger interest from other states, thereby increasing the chances of federal legalization.

Current Industry Status

Currently, the cannabis market attracts different types of businesses. The most talked about form of investment in the cannabis industry is medical marijuana, which as pointed earlier, triggered a flurry of investment activity in the last two years.

Companies like GW Pharmaceuticals (GWPH) were among the beneficiaries of that boom, as the price per share rallied from $9.00 per share to $103 per share between July 2013 and June 2014.

GW Pharmaceuticals has been one of the top medical marijuana stocks over the last few years, with its flagship cannabis drug Sativex. The drug is made from a mixture of CBD and THC, which are found in marijuana, and has been approved or

This article was written by

Nicholas Kitonyi profile picture
I am a financial analyst and private investor with a primary focus on high-growth stocks. My portfolio is mainly made up of small caps, but there are also a few blue-chip picks. When I am not investing or writing about investments, I probably have a good time with my family. NB: Investment opinions are just opinions. I am not a registered financial advisor.

Analyst’s Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.