Top 7 Cannabis Stocks & How to Invest in Them
Hedge funds, investors and mutual funds are piling in after Canada allowed recreational usage in 2018. All eyes are now on the U.S. and its nascent legal marijuana industry.
Invest in cannabis companies directly
Trading the hottest cannabis stocks is easier than you think. You may buy shares directly through the likes of eToro.com, or turn to a CFD provider instead, such as Plus500.com. Investing in shares typically attracts commission, whereas CFDs are commission-free.
1. Aphria Inc.
Aphria Inc. is a licensed Canadian producer and distributor of medical marijuana with revenue of C$36.9 million in 2018. It grows cannabis from its plant in Leamington, Ontario, and has announced plans to expand into the U.S.
2. Aurora Cannabis Inc.
Aurora Cannabis Inc. is a licensed Canadian producer and distributor of medical marijuana with revenue of C$55.2 million in 2018. It is one of the largest cannabis companies with a funded production capacity in excess of 500,000 kilograms per year. Its product range includes cannabis oils, dried cannabis as well as softgels.
3. Canopy Growth Corporation
Canopy Growth Corporation (formerly Tweed Marijuana Inc.): a cannabis company based in Ontario, Canada, with revenue of C$77.9 million in 2018. CGC owns cannabis growers and has struck partnerships with overseas pharmaceutical producers and distributors. Shares in Canopy Growth rose sharply in 2018 after a $4 billion investment from Corona-maker Constellation Brands. Since, it has announced plans to expand production into the U.S.
4. Cronos Group Inc.
Cronos Group Inc. (formerly PharmaCan Capital Corp) is a licensed Canadian pharmaceutical manufacturer of medical and recreational cannabis, headquartered in Toronto. It sells cannabis oils, dried cannabis and pre-rolls through wholesale and direct-to-client channels. It generated revenues of C$17.1 million in 2018.
5. GW Pharmaceuticals plc
GW Pharmaceuticals plc is a British pharmaceutical manufacturer of medicines derived from the cannabis plant, including the first cannabinoid drug approved by the U.S. Food and Drug Administration (FDA). The company generated revenues of $12.7 million in 2018.
6. INSYS Therapeutics Inc.
INSYS Therapeutics Inc. is an American pharmaceutical company based in Arizona, with a focus on cannabinoids and novel drug delivery systems. Its products help address pain, nausea and vomiting in cancer patients, as well as loss of appetite in people with AIDS. The company generated revenues of $82.1 million in 2018.
7. Tilray Inc.
Iilray Inc. is a Canadian pharmaceutical company that produces cannabis oil extracts as well as dried cannabis in the form of flowers and blends of ground cannabis. It generated revenues of C$56.4 million in 2018 from operations spanning Australia, New Zealand, Canada, Germany and Portugal.
Or invest in a cannabis stock index
Alternatively, you could invest in an index tracking the performance of cannabis companies. Investing in an index can provide broad exposure to the sector. It also is a simple yet effective way to diversify your portfolio's risk away from individual companies whose share price may experience large swings off the back of performance or regulatory events.
The Plus500 Cannabis Stock Index follows the world's top medical marijuana stocks including Aurora Cannabis, Canopy Growth Corporation and Tilray. As Plus500 is a CFD provider, you may either go long or short. Go long if you expect prices to rise in the near future, or short the index if you expect the reverse. In addition, you may also apply leverage to increase your exposure. Please visit Plus500.com for more information about leverage and risk management strategies.
You may also invest across a collection of medical cannabis stocks through eToro's CannabisCare CopyPortfolio. The portfolio provides exposure to companies that grow medical marijuana, develop cannabis-based pharmaceuticals as well as other players in the sector. It is managed and rebalanced periodically by the eToro Investment Committee. The minimum investment amount for this portfolio is $5,000. Please visit eToro.com to find out more about this portfolio's performance record.
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