Two of the Best Medical Marijuana Stocks After Many States Legalize Weed in the U.S.

February 21st, 20182:16 am @


Marijuana Stocks detraphiphat

Should You Consider Medical Marijuana Stocks?

The marijuana industry can, at times, seem laser-focused on the prospect of recreational-use legalization, and that makes sense. The next big milestone for the sector will be mass legalization for pot, allowing for all uses of the drug. Naturally, investors are looking forward to that seismic shift in the industry, which will open up weed to tens of millions of new consumers, but that doesn’t mean they should lose sight of another key aspect of the industry: the best medical marijuana stocks. Specifically, medical marijuana stocks in the U.S.

While many people will read Attorney General Jeff Sessions’ marijuana comments and think that the U.S. may not be the ideal place to do pot business (and they’re not wrong), that by no means disqualifies some truly fantastic marijuana stocks focused on the medical side of the industry operating within the U.S.

It’s important to remember that the majority of U.S. residents can legally purchase medical marijuana. That fact often gets lost in the shuffle when discussing the industry.

While the U.S. is probably further behind than most developed nations in terms of its path toward full and whole legalization, many states permit medical marijuana and investors have been prospering off of these weed sanctuaries within the U.S.

Investors can and should be keeping an eye on legalization. After all, Canadian marijuana companies are among the largest and most powerful in the world precisely because of Canada’s commitment to being the first western and developed nation to fully legalize recreational marijuana—not to mention having an already burgeoning medical marijuana sector.

But that doesn’t mean that medical marijuana stocks are a waste of time by any stretch of the imagination.

The one caveat is that while certain U.S. medical marijuana stocks are making a killing on the market at the moment, that doesn’t mean they are not potentially susceptible to a federal crackdown on marijuana; it is still very much illegal on the federal level.

While the Obama White House was content to let states sort out their own weed laws, the Trump administration—and more specifically Attorney General Sessions—has signaled that harsher marijuana policy may be coming down the pipe.

I don’t see that happening. There’s just too much on the White House’s plate already with immigration and political scandals that prosecuting marijuana in states that have legalized the drug would be a losing venture for the White House.

Of course, this administration has proven that conventional wisdom is often faulty and that unpredictability is one of its default positions. That said, I would be shocked if the Trump administration decided to pursue largely unpopular drug policy while simultaneously impeding on states’ rights.

With that in mind, let’s take a look at some of the best medical marijuana stocks around.

Best Medical Marijuana Stocks

While we’re focusing on the best medical marijuana stocks, it’s important to note that one of these picks is a Canadian-based company with operations in the U.S. The reason being that the best medical marijuana stocks are often Canadian-based, even if they operate in America.

1. AbbVie Inc (NYSE:ABBV)

The first company I’d like to take a look at is AbbVie Inc (NYSE:ABBV).

The pharmaceutical company is one of the stronger ones headquartered in the U.S.

The company’s cannabis products include the FDA-approved “Marinol,” which is given to chemotherapy patients to help reduce nausea or vomiting. It is also effective at restoring AIDS patients’ appetites. (Source: “Why Prescribe Marinol,” Marinol, September 2017.)

AbbVie is one of the safer picks when it comes to the medical marijuana market.

For starters, the company is not just a marijuana producer. As such, marijuana is a strong addition to its drug portfolio rather than its entirety. This means that it will experience lower highs than other marijuana-only focused companies, but will also be better safeguarded against the strong swings we see in the marijuana market (January being a perfect example).

ABBV stock value has nearly doubled since the end of summer, so it’s not as if the company is slow-going in its gains. Rather, expect less drastic swings both up and down as the industry ebbs and flows.

2. Maple Leaf Green World Inc (OTCMKTS:MGWFF), (CVE:MGW)

My other pick for best medical marijuana stock is Maple Leaf Green World Inc (OTCMKTS:MGWFF), (CVE:MGW).

Maple Leaf is looking to both capitalize on the growth in the U.S and Canadian medical marijuana market.

The Canadian company currently has designs on Nevada and California—both of which are some of the most progressive states when it comes to marijuana tax laws, with medical marijuana having been legal in these states for nearly two decades.

Maple Leaf Green World is looking to obtain the necessary licensing to set up a corporate structure in California and is partnered with a non-profit collective in the state. The company also purchased 20 acres of property and constructed two greenhouses. (Source: “Medical Marijuana – U.S.A.,” Maple Leaf Green World Inc, last accessed February 20, 2018.)

In Nevada, Maple Leaf Green World signed a letter of intent with BioNeva to purchase a cultivation permit allowing for a 33,500-square-foot growing facility in the city of Henderson, which sits about 15 miles away from Las Vegas.

As soon as the permit transfer is accepted by Henderson officials, construction can begin.

Maple Leaf is also a marijuana penny stock, meaning that it is precisely the opposite of AbbVie in that it is going to fluctuate a lot in terms of price alongside the industry, but its potential gains could be massive as a result. Investors need to be willing to bear wild swings, however.

List of U.S. Medical Marijuana Legalized States

(Source: “29 Legal Medical Marijuana States and DC,”, November 30, 2017.)

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