Without a doubt, it's one of the most controversial topics on the market today.
But controversial or not, some marijuana stocks have already doubled, if not tripled in the last year.
- GW Pharmaceuticals (NASDAQ:GWPH) soared from $90 to $120
- Kush Bottles (OTCQB:KSHB) jumped from $1.25 to $5
- OrganiGram Holdings (OTCQX:OGRMF) rocketed from 80 cents to $3.40
- Canopy Growth (TWMJF) jumped from $2 to $14
- Even Insys Therapeutics (NASDAQ:INSY) just jumped from $9.50 to $13.50
And we can assure you that run is far from over.
Opportunities are still popping up, especially as more states approve marijuana for medicinal and/or recreational use.
In early 2017, I issued a special report called, "Green Gold: A $50 Billion Opportunity you may be missing." The report - which I gave to my Cheap Investor readers as part of their subscription - offered a solid look at the medical marijuana story and specific stocks to own. In fact, many of the stocks detailed are still worth buying today, in my opinion.
North Carolina state lawmakers, for example, just filed a bill that could legalize marijuana for medicinal purposes. With medical marijuana advocate Rep. Kelly Alexander filing the bill just last week and the support from 10 Democrats, North Carolina could become the 29th state to legalize marijuana for medicinal use.
Oklahoma and Kansas also are working on legalization, and North Dakota just approved funding for a medicinal marijuana program.
Between now and 2025, the global medical marijuana market could reach $55.8 billion, according to a new report from Grand View Research. Arkansas, Florida, North Dakota, Ohio and Pennsylvania already passed laws to allow its use for chemotherapy and pain management. And more states are very likely to follow suit.
That can't be overlooked from an investor standpoint.
Heavy interest among researchers, scientists and healthcare providers is another significant catalyst here. Look at Insys Therapeutics for example. Its lead product is Syndros, an orally administered liquid formulation of dronabinol, as well as a synthetic cannabidol for childhood catastrophic epilepsy syndrome.
While the stock did take a hit last year on falling sales of other products, it recently won regulatory approval for Syndros last July 2016, which gained approval from the FDA as a treatment for treating anorexia associated with weight loss in patients with AIDS, as well as for nausea and vomiting associated with cancer chemotherapy.
However, because it does contain a marijuana-based ingredient, it has to be scheduled as a controlled substance by the DEA. Once that happens, we could see a bounce in the stock because sales can begin. The company now projects $200 million or more in sales for the drug.
Look, the very topic of marijuana may be wildly controversial for many, but also very profitable, especially when it comes to medicinal use. Overall, with recent legalization, marijuana could be a $55.8 billion market by 2025. It's only a $6.7 billion industry right now, up 30% from 2015.
According to Gallup polls, in 1995, just 25% of the nation wanted to see marijuana legalized. By 2005, that figure jumped to 36%. By 2011, it soared to 50%. Nowadays, according to Gallup, support is up to 60%, an all-time high.
When it comes to legalizing marijuana for medicinal purposes, support is as high as 84%. Most people don't realize that half of the U.S. has now approved medicinal marijuana usage.
As more states approve it for that type of use, the story will get hotter.