Hemp is on the stock exchange and investors are buying in. First and foremost, know your hemp. There are several aspects of the industry that you should be aware of. Third-party testing is imperative before you buy or invest in a product. Moreover, hemp is not marijuana. If you are going to invest, you need to know this.
Although it isn’t currently regulated, the FDA is in the process of doing so now. We should have more input and guidance in the fall of 2019. Additionally, the potential is vast: from fiberglass and clothing, to supplements and CBD. More importantly, governing parties are stepping up to bat and knocking it out of the park. State-to-state, cannabis is being addressed, both hemp and marijuana.
Whereas medical marijuana has its place, its potential is not as vast as hemp. Industrial hemp was legalized by the federal government in the 2018 Farm Bill. The USDA legitimized state to state transport of the product, even if cannabis isn’t legal within that state. Legislation supports the hemp industry and America is quickly getting on board.
CBD: the magic potion of hemp
CBD extracted from industrial hemp has 0.03 percent of THC, if not less. This is important because THC (more prevalent in marijuana), is the cannabinoid in cannabis that gets you high. CBD does not. For those individuals seeking the healthful benefits of CBD without the high, industrial hemp is the way to go.
CVS and Walgreen’s have both jumped on the CBD bandwagon. Each company plans on stocking hemp derived CBD products on their shelves by the end of the year. We can expect to see CBD based products sold at major retailers and local gas stations across the country – sooner rather than later. Please remember, if you want quality, look for third-party testing on the labels. It means you are ensured the quality that the label states by that third party. It could also make a difference in the long-term success of a company’s brand, thus solidifying their place on the stock exchange.
According to the Hemp Industry Daily, “GW Pharma (Nasdaq: GWPH) reported that Epidiolex sales were $68.4 million for the quarter that ended in June. The London drug maker said Epidiolex has been used by more than 12,000 patients coming from about 2,500 physicians since its launch.” Initially, it was cited as the only drug on the market that could help children with severe epilepsy. Now the company has commented that more adults are starting to take it too.
Furthermore, CV Sciences, a CBD specialist based in San Diego, reported revenue of $16.9 million for the quarter that ended in June. That was a 36% increase from the same period last year. The company stated its products are now in 4,591 stores. CV Sciences currently trades on the over-the-counter markets as CVSI.
The signs that a successful future for hemp are already present on the stock exchange. We just have to be willing to act on the information we’ve been given. As ever, the stock market can be tricky and we want to be cautious. I’m all for research and knowing the market, as well as the products you are investing in. Needless to say, the sooner you get in, the more money you stand to make.
Hemp is on the stock exchange – are valuations inflated?
An understandable concern with stock market investors is the evaluation of the hemp industry. How do we know if its future growth will truly explode, especially to the degree in which it has been suggested? As of the first quarter of 2019, the hemp industry was projected to grow to 26.5 billion by 2025. That’s hefty, to say the least.
If you want to watch hemp on the stock exchange for a while before you invest, I found a website that stays on top of it: https://www.marketwatch.com/investing/stock/hemp It shows you what each market is doing, and whether each exchange is up or down. (Think DOW versus NASDAQ.) They also show you how hemp is fairing independently. If you are more of the “wait and see” kind of investor, this is definitely a webpage to follow.
I’ve never wished I had a few hundred grand laying around more than I do today. I’d invest it all in hemp, without an ounce of dread. America’s 21st century payday may come in the form of green, but a little green plant that promises to change our lives for the better, both in health and wealth.