Marijuana Stock Valuation
By Sean Bryant.
Washington, Colorado, Alaska, and Oregon have already legalized the use of recreational marijuana. Twenty-three states in total have made the drug legal for medicinal use. This relatively new legalization has allowed dozens of new companies that specialize in the plant to emerge. Some of those companies have gone public and offer a new investment niche: pot stocks. But how do you know if you are getting a good deal? How are these stocks even valued? If you want to get in on (nearly) the ground floor of marijuana stocks, keep reading. But remember, as with all new industries and new stocks, investing is risky and one act of legislation could render the companies worthless.
What Are Marijuana Stocks?
Any product you can imagine has a publicly traded company behind it. Soft drinks have Coke (COKE) and Pepsi (PEP), beer has Anheuser Busch (BUD) and Molson Coors (TAP),...
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