Some investors are sceptic about investing in the cannabis industry because of the moral aspect. At InvestingHaven, as said before, we believe this is not really a reason for concern because cannabis is legalized in several countries, partially in the U.S. and as of this summer also in Canada. This article focuses on 4 cannabis stocks in the U.S. which look very bullish in 2018.
Cannabis and Marijuana are being used interchangeably. However, under U.S. Law, Cannabis is actually the plant itself, Marijuana are specific parts of the plant with refe to the viable seeds, leaves and flowers while Hemp is the stalks, stems and sterilized seeds of cannabis. Marijuana is a well-known psychoactive drug being administered for medical or recreational usage. It is often associated with a “high” or “stoned” feeling, euphoria, and an increase in appetite after smoking it for just few minute when the effect kicks in.
Due to its long list of undesirable side-effects marijuana has never made it into mainstream business. That is changing right now.
Tobacco industry insiders have been waiting, undoubtedly, for many years for this moment in time. There must have been countless researches and clinical testing before companies like Constellation Brands (symbol STZ), a brewery company, would pay $190 million for a 10% stake in Canopy Growth Corporation, a Canadian cannabis stock. We believe this is just the tip of the iceberg, and much more investments in the cannibis industry will follow.
Let’s take a step back, and map out cannabis consumption around the planet.
It is definitely not hard to see that the United States and Canada are two countries that have a lot of potential when it comes to the cannabis business, followed by Australia, France, Italy and Portugal.
The chart of the United States Marijuana Index shown above visualizes the ballistic movement since October 2017, which increases the probability of breaking above 100 points.
InvestingHaven rarely fails in its research, in its hunt to follow smart money in their early stages of profits. The fact that even alcohol companies like Constellation Brands are allocating capital ot it, we consider this is what smart investors are looking at. United States’ closest neighbour – Canada will be working on full legalization of marijuana by 1st July 2018. In conjunction with our premium article published a month ago on Canadian Marijuana stocks, we have selected 4 cannabis stocks in the U.S. which look bullish technically.
#1 – Cannabis Science, Inc. (OTC: CBIS)
Cannabis Science Inc. is a biotech company based in Irvine, California. It works with World Authorities on phytocannabinoid science targeting critical illnesses, and adhering to scientific methodologies to develop, produce, and commercialize phytocannabinoid based on pharmaceutical products. Besides its cannabis business, the company just announced its intention to enter blockchain with an ICO in Jan 2018 to facilitate easier payment for customers. This cannabis stock could at least double triggered by exponential growth in 2018.
The monthly chart of Cannabis Science shows that its price has been consolidating since 2009. It broke the downtrend line in Jan 2017, retraced and tested the resistance after which it turned into support. At the time of writing, price was trading at 0.0838, our projected target for 2018 is 0.25 with an ultimate target of ~2.50 beyond 2018 should price break above 0.3. In case prices retrace further, the important support is ~0.665 followed by ~0.0425.
#2 – Green Cures and Botanical Distribution Inc. (OTC: GRCU)
Green Cures & Botanical Distribution Inc. is “a development stage company that wholesales and retails hemp-infused nutritional, botanical, sports, and body care products based in Inglewood, Californiais.” The company is currently Web-based and focuses on online retailing. Green Cures & Botanical Distribution Inc., operates a diverse portfolio of products and services within the botanical and cannabis industry, as permitted by law. From concept to production and distribution, Green Cures & Botanical Distribution Inc., is continuously creating and introducing products that promote a healthy life style. The fact that this company utilize web-based selling of its products makes it very cost-effective to run, and this is attractive to InvestingHaven.
The monthly chart of GRCU shows a potential massive double bottom formation, and a projected W pattern. At the time of writing, price is trading at 0.0175. The first target is 0.06 by 2018, while the heavier resistance will be around 0.27 which is the target beyond 2018. Provided the business really matures, we are more interested in the far fetching target of ~5.4 (how long investor have to wait for this price target really depends on how price moves over the next 5 years). On the flipside, the worst case scenario could lead to total loss of initial capital.
#3 – Greenpro Technologies (OTC: GRNH)
Greengro Technologies is a world class provider of eco-friendly green technologies with specific domain expertise in indoor and outdoor agricultural science systems serving both the consumer and commercial farming markets. It brings together community and commerce through the growth and distribution of healthy, nutritious foods and vital medicines backed by science and technology. Customers include restaurants, community gardens, small and large scale commercial clients. Greengro Technologies also provides design, construction and maintenance services to large grow and cultivation operations and collectives in the medical and recreational marijuana sectors. We found that Greenpro is very innovative in their effort to make their business green too.
The monthly chart of Greenpro Technologies definitely reflects the coming legalization of the cannabis business next year. Since the top in Feb 2010, its stock price has been confined into a potential triangle and price is just attempting to break the downtrend resistance. If it successfully breaks up, the 2018 target will be ~0.155 and ultimately ~1.3 beyond 2018. Should the breakout fail, immediate support is ~0.0325 which will negate our bullishness on this stock.
#4 – American Green, Inc. (OTC: ERBB)
Phoenix, AZ based American Green Inc, engaged in the medical marijuana business. The Company offers a line of products spanning from cultivation to tracking inventory for growers and dispensaries for medical marijuana. It also owns all of the rights to line of health supplements under the label OneBode. The company offers retailing, branding and commercial cultivating strategies in conjunction with its business with various licensed medical marijuana medical and retail dispensaries.
The company has consulted with dispensary operators in California, Colorado, Washington, Oregon and Arizona. It is focusing on providing goods and services that operators of licensed nonprofit medical marijuana dispensaries in regulated environments require. It provides an array of compliance, financial, business development and management services. It is also developing a line of medical marijuana products that include custom packaging for pre-rolls, cured flower and solvent free extractions. All products will be distributed by the producer under license throughout the state at participating dispensaries and retail locations.
The most appealing vision of American Green, Inc is the purchase of Nipton, a town of California with the purpose to develop a cannabis friendly hospitality destination.
The monthly chart shows that prices are starting to rise from the bottom of the 9 year consolidation zone. Our 2018 target is ~0.009 and ~0.1-0.2 beyond 2018. Breaking below 0.001 will turn the situation bearish or if not more consolidation.
Word of caution: These sub-penny stocks may appear extremely cheap. However, investor should always keep in mind the huge risks associated with penny stocks. No investment comes without risk, and cannabis companies are no exception to this rule. Though as a standalone it may not appear as much of a risk due to the large increase that many of these stocks have, fundamentally speaking, an investment based on hype alone is not sound. OTC listing requirements are not the same as those of an exchange like the Nasdaq or NYSE, which tend to have additional requirements for companies.
In addition to this, US-based companies still have to worry about federal crackdowns on their operations. Cannabis is still not legal across the US as yet, and that means at any given moment the DEA can seize or even shut down operations of a cannabis company.
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