Cannabis legalization in Canada great for investing in Canadian cannabis stocks
Cannabis has been legalized in Canada. On 18 June 2018, the House of Commons of Canada passed the Cannabis Act bill and Prime Minister Justin Trudeau made it clear that recreational use of cannabis would no longer violate the criminal code as of 17 October 2018. This has led to much excitement in and around the Canadian cannabis industry, especially for persons looking for an opportunity to invest in the marijuana industry. Investors and cannabis users have seen the massive growth of marijuana stocks in the US following legalization, and they are set to get their piece of the pie by investing in marijuana in Canada.
Massive growth expected for marijuana stocks growth in Canada
The Canadian cannabis industry is already worth billions. Some stock experts have called marijuana stocks the new and safer Bitcoin alternative for investors. Just by looking at the Canadian Cannabis LP Index we can clearly see that there is an upward trend with massive room for growth. If you missed the chance to invest in internet stocks, or you didn’t get out of Bitcoin early enough, you are going to want to figure out how to play the cannabis industry in Canada.
If you invested in the Canadian cannabis stocks in October 2017 you would have seen a 400% growth rate in just 7 months. Not a bad investment and we are likely to see the same growth and another spike in growth in October 2018. According to numbers released in April 2018, 14% of Canadians reported that they used cannabis (or a cannabis product) in the past three months, with 56% of users reporting that they use cannabis daily. That means that around 4.2 million Canadians are already using cannabis and that the number of users is set to increase as users come out of the cracks under the umbrella of legal marijuana in Canada.
Best Cannabis stock to invest in Canada
There are many options available to investors looking to invest in the Canadian cannabis industry, but what is the best cannabis stock to invest in, in Canada? Instead of investing in small grow-ops, why not invest in a well-established company like FSD Pharma?
FSD Pharma, (CSE: HUGE) (OTCPK:FSDDF), is in the process of building their new grow facility in Ontario. This new grow facility will be the largest hydroponic cannabis growing facility in the world. FSD Pharma will be targeting all legal aspects of the cannabis industry. These ventures include cultivation, processing, manufacturing, extracts and research and development. Their 630,000 sq. ft. the facility is situated on 70 Acres of land, leaving FSD Pharma with lots of room for expansion too. The potential is there to house 3.8 million sq. ft. of cultivation and processing area, making it perfect to cater to the growing cannabis demand in Canada and even around the globe once that is legally allowed.
Why are investors excited about FSD Pharma stocks?
We’ve all heard the only saying that having all your eggs in one basket simply isn’t smart. The same applies to cannabis stocks. Many investors will make the mistake of investing in companies that specialize in one particular aspect of the marijuana business in Canada. Many companies only grow cannabis, many only processes the cannabis, many only produce cannabis edibles or another product like cannabis oil. Naturally, there are also businesses that are only retail outlets for cannabis products. Legalization will be opening many avenues for generating revenue, and smart investors should make sure that they invest in companies that will be generating revenue from multiple of the avenues made available.
FSD Pharma is not only a grow facility but they will also be generating revenue from all the available options opening up under legalization in Canada. Cannabis will be grown, processed and cannabis products manufactured, all under the guidance of a world-leading research and development department. Research and development is essential in producing new, and high-quality cannabis products.
Bright future of Canadian cannabis industry
Even though medical and recreational marijuana is legal in many states in the US, marijuana is still illegal on a federal level. The marijuana industry in the United States has seen massive growth over the last 2 years but is still being held back because of the illegal status of marijuana on a federal level. Because Canada has legalized cannabis across the board, there is very little red tape holding back the cannabis industry. Growth will be fast and huge.
The “green rush” is coming to Canada. If you are not familiar with the term “green rush” it’s a play on words used to describe the influx of investors in the cannabis industry, similar to the gold rush experienced in the 1800s. Most of us were not around to be part of the gold rush but it’s not too late to be part of the “green rush” currently happening under marijuana reform. Whenever there is a rush there is an opportunity for investors to share in the profits generated. But you should be cautious because if you invest in the wrong company by buying the wrong stocks there is also a chance to lose money.
It is important to not pay attention to the unnecessary hype surrounding cannabis companies. Don’t believe promises of get rich quick schemes based on investing in marijuana stocks. Make sure you do your research and only invest in marijuana stocks of legitimate companies with good leadership and a proven track record. Make sure you are aware of all the risks that a cannabis company might face before making your decisions on which stocks to purchase. US cannabis companies will always face the risk of crackdowns from the government. This is a risk that can easily be mitigated by investing in Canadian cannabis stocks like FSD Pharma, (CSE: HUGE) (OTCPK:FSDDF) that operates in a country where marijuana trade is completely legal.
Always choose stocks of companies that are industry leaders. Canada has a bright future now that cannabis has been legalized and identifying industry leaders have never been easier. There is plenty of information published on the internet, many journalists reporting on the industry and trends. There are even YouTubers that operate stock trading YouTube channels that are discussing the best cannabis stocks to buy. By simply heading to Google and doing a couple of searches you can easily find all the needed information to make an educated decision about which cannabis stocks to buy. And believe me, once you start it’s easy to go down a wormhole of article after article about cannabis stocks and which stocks are the best to buy.
FSD Pharma poised for much success because of its capacity
If you have never grown marijuana, you might be under the illusion that it’s simple to grow because it’s only a weed. That could not be further from the truth. Especially if cannabis is grown to be sold for medical or recreational use. To grow high quality, AAAA grade cannabis needs a high level of expertise and experience. You also need a facility that has large open spaces where plants can not only grow but flourish. You also need constant innovation and research to ensure that you keep producing better and better quality cannabis. Processes to produce extracts like cannabis oil need laboratory level environment and equipment. To produce cannabis edibles you need a kitchen to develop recipes, and a food product production plant to produce the cannabis edibles at a large scale. The amount of square footage required to operate a company that is a dominating force in the cannabis industry is a problem many publicly trading cannabis companies face.
FSD Pharma has a facility that is big enough to undertake all the above processes at high volumes. Not only that, but they also have enough acreage that they are already planning expansions to their facility. The facility is also located close to national highways and the rail system. This puts FSD Pharma in a unique position where transport of their products to reseller will occur faster than many of their competitors. These are all factors that many are factoring in their decision making when they say that FSD Pharma stocks will be the best cannabis stocks to buy. Especially in an emerging market where serious competitors will have to keep up with an ever-growing demand for cannabis products. Whether it’s cannabis products for medicinal use or for recreational use, there is going to be an increased demand now that you cannot go to jail for the use of marijuana in Canada.
It will be worth it for you to keep a close eye on FSD Pharma in the immediate future. Before we know it October 2018 will have come and gone and new marijuana legislation would have started being implemented across Canada. Ever thought about how you should have just purchased $1000 worth of stocks in Facebook when the company started trading publicly? But you never did, and by the time you woke-up the best opportunities for growth had already passed. Just don’t sit on your hands for too long, or you might miss out on some of the best investment opportunities in marijuana stocks in 2018.
