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Posted on 27 April 2014.
By
When Colorado started permitting legal sales of marijuana in specially-licensed stores on January 1, 2014, marijuana penny stocks experienced a huge rally. Since then, many of the budding young companies in the marijuana sector have sold off considerably. With Washington State poised to become the second state in the United States to legalize marijuana sales via retail outlets, starting in June 2014, it is time to take a look at stocks that comprise to marijuana sector. There is likely to be an anticipation rally. The time to start a list of publicly traded marijuana stocks that may spike higher with Washington State legalizing marijuana sales is now.
When legal sales began at the beginning of 2014 in Colorado, considerable media attention was focused on the huge potential growth prospects for companies in the emerging marijuana industry, which drew a lot of investor interest to marijuana penny stocks. This included investors that do not typically buy penny stocks, but could not pass up the opportunity to buy into companies that are at the ground floor of an emerging industry that has huge growth and profit potential. The media attention associated with the Washington State rollout of legal marijuana sales will likely cause another rally in the marijuana sector.
The marijuana industry is developing so quickly that it is very difficult to keep track of the wide variety of businesses that derive a good portion or all of their revenues from products and services associated with marijuana. From a stock trader’s perspective, what is important is what the wider stock trading community considers a marijuana company to be, as they can be involved in many aspects of the marijuana business, from cultivation to distribution to products and services that support the industry.
The following is a list of marijuana stocks that trade publicly on United States stock quotation services and in one case on a stock exchange. While there are no guarantees that these stocks will rally in anticipation of the June 2014 Washington State legalized marijuana sales milestone, this list serves as a good place to start researching the most promising marijuana stocks, in case another marijuana sector-wide rally develops ahead of Washington State’s change in law.
This list is subject to change over time, as companies either enter or leave the marijuana business, or change the focus of their business operations within the marijuana industry.
With the notable exception of GW Pharmaceuticals Plc (NADSDAQ: GWPH / OTC Pink: GWPRF), a London, England based cannibinoid therapeutics company that researches and develops cannabinoid prescription medicines, all of the companies in the marijuana sector that have publicly traded stocks trade on the Over The Counter Bulletin Board (OTC BB) or the Pink Sheets (otcmarkets.com). Many of the stocks are penny stocks, selling for less than $1 per share. They have been highly volatile, especially since the beginning of 2014, which saw many of stocks in the marijuana sector make gains well in excess of 100%, some in excess of 500%.
How do you play the Washington State marijuana penny stocks rally? Rallies that are based on known upcoming events usually experience considerable anticipation buying. Research the stocks on the list provided in this article and other marijuana stocks you may have heard of and initiate a position in the ones you feel are the best positioned to benefit from Washington State’s liberalization of marijuana laws. Just be careful to take your profits and set stop-loss orders, in case the trade does not work out. Be careful! Once the general public starts jumping into these stocks, they may experience a blow-off top and make a sharp reversal lower in the wake of the publicity surrounding Washington State’s kick-off of legal marijuana sales.
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