Best Gun Stocks to Invest In If Marijuana Is Legalized
Publicly traded companies have benefited from the fears of social unrest spurred by the coronavirus pandemic. And the prospects of a Democratic sweep, which could lead to tighter gun laws, have fueled stock prices of gun-makers. As a result, stocks of companies like Sturm, Ruger & Co. (NYSE: RGR) and Beretta Corp. (NYSE: BNA) have more than doubled in value since March. During that same period, shares of these companies have outperformed the Standard & Poor’s 500 index.
After the recent outbreak of a coronavirus in the U.S., gun stocks have soared on the prospect of tighter gun regulations. But cannabis stocks have also risen in tandem with gun stocks. Shares of Trulieve Cannabis Corp. (NYSE: THC) are up 24% year to date, while the AdvisorShares Pure Cannabis ETF is up nearly 12% year to date. Investors are looking ahead to legalization in various states and the potential for marijuana legalization.
Despite a surprisingly strong lift in marijuana stocks, the market remains highly volatile. The 10 largest cannabis companies have only gained 20% since August, according to Veridian Capital Advisors, a mergers and acquisitions firm focusing on the marijuana industry. And since marijuana sales are expected to reach $15 billion by 2020, marijuana stocks could skyrocket in value. If the marijuana legalization vote favors Democrats, stocks of cannabis companies could climb 40%, as predicted by Veridian Capital Advisors. However, if Harris is elected, marijuana sales are expected to grow even faster, and investors may find themselves in a buying mood if they are already positioned for a boom in the industry.
The cannabis industry has been doing well during COVID, and it is also rising as the election nears. Ultimately, cannabis legalization will lead to tighter gun regulations, and marijuana stocks could become profitable. This is all the more reason to buy cannabis stocks. You never know, it could be the best investment opportunity in history. You never know when it might happen! So, buy marijuana stocks now and take advantage of the low prices!
Regardless of how marijuana becomes legal, the investment in cannabis companies may be a smart move. Marijuana stocks are still a great investment, but they may not be the right choice for everyone. Marijuana stocks are not the most profitable investments, but they may be safe for investors looking to hedge against the potential for marijuana legalization. The DoD Central Adjudication Facility (DAC) sees personal investment in marijuana companies as a negative sign, and can affect security clearance.
Although cannabis stocks have not delivered long-term returns over the past five years, the industry is still in its infancy and presents a large opportunity for investors. However, marijuana stocks aren’t suitable for conservative investors, and aggressive investors may be better off investing in index funds covering all sectors of the stock market. There are also some risks involved in investing in marijuana stocks, so if you’re unsure, read our guide to marijuana stocks and invest accordingly.
Canopy Growth Corporation
While Canopy Growth is a relatively undervalued Canadian company, it is a high-risk and patient investment that has a big potential for growth. Marijuana legalization is sweeping across North America, with eighteen states and Washington D.C. legalizing recreational use, and Canada just recently approving full legalization. Canopy Growth is primed to benefit from this revolution, and I strongly recommend it to any investor looking to make money from marijuana stock speculation.
As of November 2018, over 681,000 people registered to use marijuana for medical purposes. The legalization of marijuana is a big step forward for the industry, but federal prohibition remains a significant obstacle. Many banks are hesitant to do business with marijuana businesses, even if it is legal for adults to consume. Fortunately, there are many advantages to investing in stocks in marijuana despite the risks involved.
If marijuana becomes legal, Canopy Growth Corporation would become one of the best gun stocks to invest in. While marijuana is still illegal for recreational use in the US, the company’s cannabis-infused hemp vape pens are already being sold in Circle K convenience stores. Tilray’s CEO Ted Kennedy recently predicted that marijuana could be worth $300 billion by 2030, with a 30% CAGR over that period.
Cannabis investors are eager to get in on the ground floor of the new industry. With the Canadian legalization of recreational marijuana on the horizon, the pressure on other countries to follow suit will grow. Not only will this drive the black market into the ground, it will also attract American pot tourists. Constellation has already seen its share price jump 800% in the past decade, thanks to the acquisition of the Modelo Group and its management’s success in increasing sales. Investors should consider a position in Constellation stocks if marijuana becomes legal.
The beverage company Constellation Brands has made a large investment in Canopy Growth Corporation, a producer of marijuana. With pot legalized in Canada this year, investors can make good money by investing in these stocks. They have recently listed on the TSX under the symbol “WEED” and have a market cap of $1.6 billion. Constellation Brands also has a long history of investing in cannabis, and its president and CEO Rob Sands is an expert on the sector.
Constellation Brands’ stock price has already fallen 5.55% today after the company missed analyst expectations on its quarterly earnings. The company cited bad weather and higher transportation costs as reasons for the disappointing results. Greenstar also bought 200 million Canadian dollars’ worth of convertible debt from Canopy Growth in June. This move suggests that marijuana stocks will be popular again, but they have to be bought at a premium, as investors fear that the drug industry is heading in the wrong direction.
Cannabis stocks are a great way to gain exposure to the cannabis market, but it’s worth considering which ones to buy before investing in Constellation Brands. This is the third largest wine company in the United States and also has a strong beer and spirits business. However, analysts don’t think this will lead to a booming legal marijuana industry. Therefore, investors should avoid Constellation Brands if marijuana becomes legal in the U.S.
A marijuana legalization initiative will also affect alcohol companies. Alcohol companies generate $223 billion dollars a year in the U.S., while cigarette sales were $93.4 billion last year. The company’s joint venture with Heineken has yet to name a CEO for the venture, but two Roots’ CEO says the industry will grow to be just as large as alcohol. Nevertheless, marijuana stocks will probably not be worth that much more than tobacco and alcohol companies.
In addition to Monster, Constellation Brands Inc. is exploring a merger with Constellation Brands Inc. A merger between these two companies would be the biggest merger in the industry since the $120 billion Anheuser-Busch InBev took over SABMiller. However, the two companies don’t plan to fully combine. Besides, a merger of this magnitude could cause a hangover. Rather, the companies are likely to settle for a joint venture or sell some of their assets.