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Reasons Why You Should Be Buying OTC Medical Marijuana Company Stocks

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Medical marijuana is a growing industry and it is not only the marijuana growers, dispensaries, and processors that are making a killing. It is an industry full of challenges and risks but is an investment with the potential for great reward.
It is always challenging to enter into a new market and entering a highly regulated industry is even harder. However, a quick look into the insurance, financial, tobacco, alcohol, pharmaceutical, and healthcare industries reveals that profits can be gained in spite of a tough regulatory environment.
Investing in the medical marijuana industry involves a lot of risk and it is why many investors rarely consider having OTC medical marijuana company stocks in their portfolio. Many people believe that most of these companies are either scams or are incapable of generating profits.
While it is true that it was hard for medical marijuana companies to turn a profit in the past, the situation is now completely different. What was once a limited income generating opportunity has become one of the quickest growing industries in recent times.
Regardless of the beliefs that you may have regarding the use of marijuana, you must never allow a golden opportunity such as investing in medical marijuana to pass you by. Medical marijuana stocks have a huge profit potential.
Medical marijuana stocks will soon have a major breakthrough. Read on to learn about the 7 reasons why medical marijuana company stocks can generate excellent returns for investors over the next few years.
The best thing of all is that many investors have still not yet caught on to these reasons. This is why this article is bringing them to your attention so that you get in before the industry takes off and help you be ahead of the curve.
7 Reasons Why Should You Invest In OTC Medical Marijuana Stocks
1. A Shift In Government Towards Legalization
In 2016, it was believed that the United States Drug Enforcement Administration would reclassify marijuana as a Schedule II drug. Such a reclassification would make it legal in all the 50 US states with a prescription. However, the Obama administration shot down those efforts. Such a reclassification would have been a huge catalyst for OTC medical marijuana company stocks.
Despite marijuana not being reclassified, the use of marijuana for both medical and recreational use in the United States is growing and becoming more acceptable. The number of states legalizing marijuana for either recreational or medical use has been steadily rising since the year 2000.
Only 3 states namely Maine, Oregon, and California had fully legalized medical marijuana before 2000. However, since then over 20 states have legalized the use of medical marijuana. In fact, the number of states that have legalized the use of marijuana in some form has risen to 25.
In 2015, 2 states namely Ohio and Pennsylvania joined the list of states legalizing medical marijuana. In 2016, November several states voted on the legalization of marijuana and 4 states namely Montana, Arkansas, North Dakota, and Florida passed medical marijuana measures.
The shift towards the legalization of medical marijuana means that the industry will only grow larger and so will the potential for good returns. Now is the time to invest in this lucrative industry are more states continue legalizing medical marijuana.
2. Increased Revenue For The Government
Governments all over the world love more tax revenue and this is exactly what legal medical marijuana sales provides. If you want to understand what legalizing marijuana can do for revenues all you have to do is look at what happened in 2014 in Colorado and Washington.
Colorado and Washington legalized the use of marijuana and each collected over $70 million in terms of tax revenues from the sales of marijuana. This figure is about 2 times the revenue that Colorado generated from alcohol taxation. In 2016, Colorado generated over $150 million in marijuana taxes against sales of just over $1 billion.
It is estimated that the marijuana market in the United States could be easily worth over $30 billion annually by the year 2020. In comparison, the National Football League has an annual revenue of just $10 billion.
The potential for increased revenue means that the industry will only continue growing larger and this can only be good for you as an investor. Even though the regime has changed, it is highly unlikely that government will roll back the gains made in the medical marijuana industry given the revenue it is generating.
3. Quickest Growing Industry
The marijuana industry is one that is growing rapidly. In 2015, the industry grew by about 17 percent to about $5.7 billion while in 2016 it grew by about 25 percent to about $6.4 billion. This means that legal marijuana is one of the quickest growing industries in the United States.
Investing in OTC medical marijuana stocks means that you are getting a slice of this massive, growing, and highly lucrative industry. Identifying and investing in the quickest growing industries has always proven to be a challenge for many investors. Since you now understand that legal marijuana is one of the quickest growing industries it is now time to make the most of it and get in ahead of the rest.
4. Widespread Use Of Medical Marijuana
Numerous research studies are being undertaken to look into the medical applications of marijuana besides its traditional use as a painkiller.
According to the findings of some research studies, marijuana can treat a wide range of illnesses and diseases including Post-Traumatic Stress Disorder (PTSD), schizophrenia, Type 2 diabetes, as well as some forms of cancer.
Many marijuana-derived drugs currently available in the market are already approved in such countries as Spain, Germany, and the United Kingdom. As more research is undertaken in the US, more marijuana-derived drugs could become approved by the Food and Drug Administration.
Over 25 US states currently allow for the use of marijuana for medical purposes. However, the FDA has not undertaken much peer reviewed research on the medical applications of marijuana. However, some nonprofits are pushing for the FDA to approve marijuana use for treating PTSD.
The widespread use of medical marijuana is a very powerful reason for investing in OTC medical marijuana company stocks. Medical marijuana companies will only become more profitable as the industry grows and this is good news for you as an investor.
5. The Growth In Investment Options
There are tens of Over The Counter (OTC) medical marijuana stocks meaning that you have plenty to choose from. As the growth in the legal marijuana continues you can expect more marijuana companies to start going public. Most of these stocks are currently penny stocks that currently trade for less than $5 meaning that you can get involved in the market even if you don’t have a lot of money to invest.
6. Banks Will Start Servicing The Industry
In 2016, the United States Senate approved an addition to a bill that makes it easier for banks to offer services to legal marijuana businesses. At the moment, marijuana companies operate only in cash since many banks are afraid to do business with them. The new measures would have meant that financial institutions would no longer be afraid to open up accounts for businesses that comply with the law.
While the measures did not make it into law, the continued push by legislators to have the marijuana industry recognized as a genuine business will eventually bear fruit especially considering that over 60 percent of the United States population currently lives in an area where marijuana use is legal.
Once the financial institutions start servicing the industry, you can be sure that it will grow exponentially. However, before this happens, you should get into the industry while the prices of the medical marijuana company stocks are still low so that you can maximize your returns once the banks start servicing the industry.
7. The Growth In Subsectors
When most people think of the marijuana industry in general they think that it solely sells marijuana either for medical or recreational use. However, this is far from true. Some people grow marijuana for various users while some make apps for both users and sellers. Others even sell equipment and tools used in growing and cultivating marijuana.
The biotech space is one of the sectors that will enjoy the most benefit with the increased federal legalization of marijuana use. While the existing laws make it hard to do marijuana research, the continued legalization can allow biotech companies to do research without fearing any legal consequences.
The wide breadth of the marijuana industry gives investors a wide variety of options regarding where to invest their money. Since the marijuana industry dips in all kinds of sectors it has plenty of room for growth in the future.
Final Thoughts
Marijuana use has been legalized in over half of the US states and it is highly likely that this trend will continue moving forward. The use of marijuana for medical purposes has been the greatest driving force towards the increased push towards the legalization of marijuana in the United States and even other parts of the world.
The marijuana industry in general is massive and the medical marijuana industry is a large portion of this industry. If you would like to enjoy a slice of this lucrative industry, you should consider investing in OTC medical marijuana company stocks for the 7 reasons discussed here.

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