5 Cannabis Stocks that Won't Leave you Burned

Joel Anderson  |

Hey, it’s 4/20! The day that we all (unofficially) celebrate marijuana! So, I think we all know what that means: That’s right, time to kick back and light up… your laptop, to take a look at some of the most viable marijuana stocks out there. What else were you expecting?

We here at Equities.com have done a lot of coverage of the budding (pun intended) cannabis industry, so we’re believers in its ability to build its way into a very real, very legitimate industry in the near future. However, in the short term, the cannabis industry struggles with a wide variety of regulatory issues and public perception problems that most companies just don’t have to deal with. Add to that the fact that many of the marijuana companies that are publicly traded tend to be penny stocks struggling to find liquidity, and it gets hard to find investment options that don’t come with a massive bundle of risk.

So, in celebration of 4/20, I thought we could take a quick look at the five most liquid marijuana stocks on the market outside of the biotech sector. There remains, undoubtedly, a lot of risk involved in investing in the cannabis industry this early on, even with stocks that can claim some real volume. However, that doesn’t mean any investor interested in rolling the dice by getting in on the ground floor can’t find some stocks that are at least trading at a reasonable clip.

So, here are five cannabis stocks with a per-share price and average volume that won’t leave you worried you’re going to get burned.

Cannabis Sativa (CBDS)

Market Cap: $39.08 million

Per Share Price: $2.42

Average Daily Volume: 423,181

Cannabis Sativa is a consumer goods company focused on developing natural cannabis products that include edibles, topicals, strains, recipes, and delivery systems. Based in Nevada, Cannabis Sativa is taking a diversified approach to building out a product portfolio for what it believes will be “the next gold rush.” And, with hundreds of thousands of shares moving a day, the company’s stock appears to be moving at a clip that would indicate taking a chance on Cannabis Sativa’s shares will represent a gamble you can just as easily exit if you change your mind.

General Cannabis Corp (CANN)

Market Cap: $31.01 million

Per Share Price: $1.68

Average Daily Volume: 242,252

General Cannabis Corporation is a products and service provider for the cannabis industry, providing services in the areas of real estate, consulting, financing, and security. It’s a one-stop shop for the building of a successful cannabis business in cultivation, retail, or production. It’s also in the enviable “picks and shovels” space, meaning the company can avoid actually handling the cannabis plant and sidestep much of the regulatory issues facing other companies. What’s more, with nearly a quarter-million shares changing hands a day at more than $1.50 a share, the company clearly has some juice in its stock.

MassRoots (MSRT)

Market Cap: $66.4 million

Per Share Price: $1.39

Average Daily Volume: 187,780

MassRoots is a social media company built specifically for cannabis users, giving cannabis fans a chance to interact and compare notes on different products. One of the first cannabis companies to go public, the company got a boost of publicity when Apple (AAPL) dropped the app from its app store in January of last year, only to return them to the rolls after a flood of angry MassRoots users sent emails in protest.

Kush Bottles (KSHB)

Market Cap: $64.23 million

Per Share Price: $1.50

Average Daily Volume: 8,554

Kush Bottles is engaged in the business of producing cannabis packing, with everything ranging to child-proof pop-top bottles to gloves and sample jars. The company also produces pipes and other glassware as well as vaping products. While the average daily volume under 10,000 shares is a red flag, it’s still enough to give a company on the picks and shovels side of things a second look.

Terra Tech Corp. (TRTC)

Market Cap: $183.97 million

Per Share Price: $0.54

Average Daily Volume: 10.94 million

Terra Tech is an agricultural company focused on the cultivation of the highest quality medical cannabis. The company is vertically integrated, engaging in a wide variety of agricultural services. As red flags go, a share price under $1 is never good. However, with nearly 11 million shares moving on an average day, the stock has plenty of liquidity to work with.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
MSRT MassRoots Inc 0.01 -0.00 -4.67 5,498,559
CBDS Cannabis Sativa Inc 1.95 -0.05 -2.50 133,501
KSHB KushCo Holdings Inc - Ordinary Shares 4.70 -0.23 -4.67 805,338
TRTC Terra Tech Corp 0.42 0.02 4.54 1,682,163
CANN General Cannabis Corp 0.74 -0.02 -2.01 227,565

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