With the legalization of marijuana on the horizon, cannabis stocks are a good place to invest today. As the recreational cannabis movement sweeps the nation, stocks are poised for big growth. In recent months, Washington D.C., Connecticut, and the Commonwealth of the Northern Mariana Islands have passed legislation legalizing the adult use of marijuana. Looking ahead, investors should look for stocks with excellent balance sheets and free cash flow. Some examples of such companies include Innovative Industrial Properties (IIP), Cresco Labs (MSO), and Medicosis Inc.
While early mergers sucked investors’ money, a new round of deals is already under way. This year has been an excellent time to invest in marijuana stocks, and the number of deals has already reached a record. So far this year, two companies have acquired one another for a total of $5.5 billion. This is higher than the amount of deals that closed last year and in 2019. TerrAscend, for example, acquired Michigan-based Gage for $545 million.
Another marijuana stock with tremendous upside potential is MSO Jushi Holdings. The company has a dual strategy. Its first part is to incorporate self-pay kiosks and funnel customers toward higher margin derivative products. The second component is a more traditional marijuana dispensary. MSO Jushi Holdings’ unique two-pronged approach is a great growth catalyst.
The next segment of marijuana stocks to buy is MSO Jushi Holdings. The company has been acquiring other marijuana companies and building an online presence. The company is also focused on selling private-label cannabis products through its e-commerce platform. Its revenue is projected to double by 2022 compared to the previous year. A new market for these stocks will be created once the federal ban on marijuana is lifted.
After decriminalization of marijuana, investors are turning to marijuana stocks as a smart way to invest in the sector. Despite the aforementioned risks, the market is ripe for a breakout in the Summer of 2022, with a variety of companies to choose from. Several companies have become popular among investors on social media. SNDL and GrowGeneration are two such stocks.
As the marijuana sector prepares to become legalized nationwide, it is important to invest in the cannabis sector. The stock market is likely to remain volatile in the coming years, but the current conditions are favorable for investors. Listed companies will be able to list on major US exchanges and increase capital for the industry. Additionally, investors will be able to take advantage of the regulatory changes by buying shares in these stocks.
While it is too early to speculate on the federal legalization of marijuana, it is a good idea to buy top-ranked cannabis companies for the Summer of 2022. The sector’s potential for growth is huge and the best time to invest is now. Somai Pharmaceuticals, Inc., a Canadian licensed producer, has paid $110.4 million for an option to acquire a 10% stake in PharmaCann. It also has purchased convertible bonds from MedMen. Once federal legalization is finalized, Tilray will own a 21% stake in PharmaCann.
While the cannabis industry hasn’t yet reached federal legalization, it is still a good place to invest. While many investors are wary of cannabis stocks, investors should focus on top-ranked companies that have proven mandarin gelato seeds management and a dominant position in the market. If you have a portfolio that is diversified across a variety of sectors, then the cannabis stocks in the summer of 2022 might be an excellent time to invest.
As federal legalization moves forward, cannabis stocks will continue to remain highly-valued. In addition to cannabis, the marijuana sector is also set to benefit from a growing trend in consumer demand. In addition to the legalization of marijuana, the stock price of other marijuana companies may rise as well. Investing in these stocks may be an excellent idea as the industry continues to gain traction.