The marijuana industry is booming. Just recently, reports surfaced that depict the industry can grow up to $35 billion in sales alone in 2020. These figures, however, do not include the massive sales that are set to take place through legal medical marijuana dispensaries. As an investor, it is not often that a market with this much potential comes along. With more and more legalization initiatives taking place and more medicinal uses for the plant, the industry has a very bright future.
Investing in dispensaries that have a diverse portfolio of products is one of the snags that a new investor and even seasoned investors will hit. Many of the companies promoting these dispensaries are not going to be seen on the top of NASDAQ, but in the coming years, they may become household names.
Medical Marijuana Dispensary Investment Ideas
There are numerous marijuana stocks to invest in, but you want to go with companies that have a diverse set of offerings. Some of the best companies are those that support the dispensaries themselves.
Let’s look at a few examples:
- Equipment providers
These are all integral partners needed by dispensaries. Without growers or equipment producing companies, dispensaries will not have items to sell. It is better to invest in a company that deals with all aspects of marijuana than a company that is only focused on one small area of the industry.
A diverse portfolio is always the best idea for an investor. The stocks to buy now are those that are supporting the industry, and companies that also have other means of revenue. In this case, you’ll have a financial safeguard in place so that your investment doesn’t turn into a mistake if medical marijuana ever gets banned or gets replaced in the future.
As always, you’ll want to do your research on the industry and figure out your own stocks to buy now. An indirect approach is sometimes preferred in investing, and this is definitely one of the scenarios where indirect investing may be the safest measure.
We have handpicked a few great stocks that you can invest in at any time. These stocks are mostly supporters of the industry.
Supporting Stock Ideas
A company with stead revenue. GWPH started in 1998 and is in the pharmaceutical industry. The company teamed up with major distributed Bayer to help get its products in the hands of consumers. The main product that the company sells is Sativex. This is a medicine that aims to help reduce pain and spasticity in patients using cannabis.
Available In 11 countries, this medicine is further being tested in hopes of alleviating cancer pain and has made this a stock with shares currently sitting at the 72 – 74 range on average. The 52 week range had this stock’s lowest price at 28 and its highest at over 111. From an investor standpoint, a lot of people missed a great opportunity in the beginning of the year by not investing in GWPH.
The company is always looking for distribution methods and dispensaries are a very viable option.
GrowLife Inc. is one of my favorite companies. A backbone of the industry, GrowLife deals with the growing process. While this company is still in its infancy and has seen wild fluctuations throughout the year, there is a lot to like about GrowLife. Some of the reasons why this company makes our list are:
- Diversity: GrowLife offers growing-based products. Tents, lighting and other vital pieces of equipment that every grower needs to get their business rolling.
- Expansion: The company not only has an online store, but ground stores are popping up around the country.
This is a volatile stock at times, but one right industry move can make this small company go from being on the OTC Markets to the top stock exchanges in the world.
In August of 2014, the company boasted a 159% increase in revenue over the previous year. The company is expanding and making money which is a good sign of future potential.
Medbox Inc. (MDBX)
Medbox Inc. is a little on the cheating side because it is a dispensary, but they also offer other products that make this a very promising company. Medbox has a higher stock price than the last entry on our list with a current stock price of $11. The company has also just completed its second round of capital raising adding to the promise of big things in the future.
Medbox offers the following products:
- Storage Locks: Promoting safe access to products.
- Lockbox: Ideal for pharmacies that need to leave medicines for patients in a secure, lockbox.
- OTC Machine: An easy dispensary that allows a variety of products to be chosen.
- Medicine Storage Machine: The ideal solution for inventory control.
The one thing that really sets Medbox apart from the competition is that they include a biometric scan. This scan will allow items to only be dispensed when the appropriate person’s metrics have been matched. This will reduce the likelihood of abuse and will provide a means of monitoring who is dispensing products.
AgriTek Holdings, Inc., (AGTK)
Medical marijuana dispensaries rely on the services that AgriTek provides. The company has even came out recently to express that they are focusing on the medical marijuana industry and found investors to help them reduce bad debt to allow the company to grow further.
AgriTek is another interesting addition to this list because they have a product that can be used in a variety of applications. While the company does stress the marijuana industry benefits of their products, these are items that can be used for any dispensary type. So, what does the company offer that is different?
- Transaction processing and security.
- Payment solutions for e-commerce and mobile.
These are solutions tailored to the industry, but one small tweak can allow AgriTek products to be used in a variety of applications.
The company’s stock is currently priced at $0.11 a share and new lease agreements have been announced by the company.
GreenGro Technologies, Inc. (GRNH)
The final company on our list. GreenGro Technologies provides state-of-the-art growing equipment and systems. These items are a necessity for pot farmers and are an integral part of all commercial farming.
Aquaponic and hydroponic applications are becoming more widely used in regular farming. These methods are very beneficial when applied to marijuana, but that is not the only industry that this company serves. Instead, they have had customers in the following industries:
- Community garden projects
- Pot growers
- Small farmers
Through design consulting, the company can design and ensure that a system is up to the consumer’s standards and is ready to produce large yields at all times.
Vertical systems are sold by the company as well that allow for the maximization of space regardless of the growing needs of the consumer. There are also affordable home towers sold to homeowners that want to grow flowers or produce.
Through their Vertical HydroGarden subsidy, complete grow rooms are also offered. These are easy to assemble and use a modular approach with everything needed to begin the growing process included.
GreenGro Technologies has a current stock price of $0.178 with a yearly high of $0.62.
All of these companies have massive potential to grow as medical marijuana dispensaries grow in demand. With a unique set of products and services, these are all viable companies that can also remain viable without the marijuana industry driving them into the future.