Every few years, some new industry comes along that has the potential of providing its investors with huge returns. In 2019, it seems to be the marijuana industry and marijuana penny stocks are making people money. Ever since marijuana was legalized, hundreds of companies have come up all over Canada. They’ve also begun popping up in some states of the United States, which specialize in this industry.
Since it is a relatively new industry there are scores of opportunities for shrewd investors to score big. The marijuana industry is set for explosive growth over the next few years. Right now, small companies in the space stand a chance of growing into huge operations.
We’ve already seen how some penny stocks can become industry leading marijuana stocks within just a few years. Just look at companies like Aphria (APHA), Canopy Growth (CGC) (WEED), Aurora Cannabis (ACB), and even new entrants like Village Farms (VFF). Most started out very small in share price and ended up going on explosive breakouts.
Marijuana and Penny Stocks
The first thing to remember is that despite pot being a highly popular recreational and medicinal herb, it was not legal to sell it over the counter even a decade ago. Yet the market for it was still there. However, after it was made legal, many new companies soon emerged in Canada and in the United States that are cashing in on this huge opportunity. Can you make a lot of money with penny stocks? Well, in the case of marijuana penny stocks, the short answer has been a resounding, YES!
Canada and California
The two geographies that are all set to drive the growth of the pot industry are Canada and, in the US, California. It is now beyond doubt that Canada is going to be a global industry leader. The country made its whole industry a legal one at a national level. Since then, many new companies have sprung up all over the place. The demand for pot is sky high in Canada and before long some of the companies are going to strike gold in their quest of domination of the market. At this point in time, many of those companies are still considered small cap stocks but with potential sales going into the billions, there is an opportunity for investors in the short and long term.
In the United States, California is one state that has huge potential when it comes to marijuana. It will likely drive the growth of the industry in the country. More importantly, the citizens of the state have the money to spend on pot and its fancier accessories. This could totally change the face of some companies. It is perhaps time for investors to make a short list of penny stocks that make small but steady profits. For this reason, early investments in some of them could post big gains later on as history has already been a good example.