The year 2014 will be remembered as the year of Medical Marijuana .
To say the popularity of marijuana stocks have skyrocketed is still an understatement. This year, more and more investors are looking to “bottom floor” many of the medical marijuana companies out there in hopes of landing big on return.
It’ll happen, but not now.
When it comes to marijuana stocks, I’ve always considered it to be short-term investments. Who’s in for the long haul right now unless you’ve got money to burn? (That comment is for those who fault me for the lack of dreaming and who consider me a Shorter. Come and get me America.) Is there some stability? Yeah, but you got some sifting to do.
When you look at the statistics of the latest Pew Research, you could say marijuana is the new tobacco for the United States. Last year, Pew reported that roughly half of adults said they have ever tried marijuana. Twelve percent of those who had tried it did so in 2013. Other stats included:
- 36% say they have tried marijuana, but not in the past year. People who say they have used marijuana in the past year did so both for medical reasons and “just for fun.”
- About half (53%) of those recent users say that a medical issue was part of the reason for their use, including 23% who volunteer that they used marijuana for both medical and recreational purposes.
- The remaining 47% say they used marijuana just for fun.
Fast forward to this year's numbers: CBS News reported Tuesday more doctors than consumers feel like medical marijuana should be legal. According to their report, "...The survey of more than 1,500 doctors and nearly 3,000 consumers found that 69 percent of doctors said medical marijuana can help with certain conditions and treatments. Only 52 percent of consumers expressed that same belief..."
This falls in line with Pew's findings for this year, which state 75 percent of Americans feel marijuana will eventually be legal anyway.
So where should investors look this year? In my opinion, and a matter of common sense, two communities:
Cut the middle man, separate the overnight-created "pot stocks", and you find stability in those in the medical development of the drug and those who plan to distribute it.
Also take a look at those who aren't necessarily marijuana stocks. An example is Medbox Inc. (OTCMKTS: MDBX), who offers a machine that manages the disbursement of drugs. Another interesting stock is Pazoo Inc (OTCBB:PZOO). Not exactly a marijuana stock, but have managed to creep into the industry. The company reported at the end of March their purchase of 40 percent interest in MA & Associates, LLC.
MA & Associates recently obtained an exclusive license for use of computer applications for scientific testing, procedures, know-how, protocols, trade names and other intellectual property used in connection with testing cannabis. Pazoo's take in this: The Binding Letter of Agreement they entered into, as per a report on the Small Cap Network, "... calls for an additional $250,000 deposit to be made by Pazoo when applications from the State of Nevada will be made available for State approval to setup two medical marijuana testing laboratories. The State of Nevada mandates that marijuana must be tested to ensure it meets safety standards for distribution..."
Before you jump into the marijuana stock bubble, take a real hard look at the players. Obvious? You would think so, but with so many investments out there, you can easily invest in something that's not going anywhere. However, medical marijuana is here to stay, just find the right place to "hunker down" and wait it out.
The opinions expressed in this article are that of Live$tock. Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance is no guarantee of future price appreciation. In addition, Live$tock does not own any marijuana stocks.