how to invest in hemp

Best Hemp Stocks To Buy: Raking In The Green

Marijuana and hemp are the two main branches of the cannabis plant family, but there is an important difference.

Hemp is defined as cannabis that contains 0.3 percent or less of the psychoactive chemical THC, while marijuana contains a larger amount of the compound.

The recent legalization of hemp is generating excitement among investors. After decades of suppression, farmers are once again permitted to cultivate and sell this versatile plant. Companies that stand to profit from growing and distributing hemp and hemp-based products stand to realize significant profits, which may mean good news for those that invest now.

A Quick History of Hemp in the United States

When the 2018 Farm Bill was signed into law, hemp production became legal in the United States.

However, this isn’t a first for the country. Hemp arrived in North America as early as 1606, and for centuries it played a critical role in the economy.

In fact, it was so important that it became the subject of legislation in the 1700s. By law, farmers in certain colonies were required to grow hemp alongside other staple crops.

Hemp was used in the manufacture of rope, lamp fuel, clothing, and paper. In some areas, it could be exchanged in lieu of currency.

The Declaration of Independence was drafted on hemp paper by Thomas Jefferson, and Abraham Lincoln relied on hemp seed oil to fuel his household lamps.

Eventually, even Henry Ford began experimenting with hemp, designing an entire auto body from hemp fiber.

The advantages of hemp cannot be overstated.

It produces four time more paper per acre than trees, and hemp fiber is ten times stronger than steel.

According to a 1938 Popular Mechanics report, it could be used in more than 25,000 products at the time the research was published.

Today, that number is exponentially higher.

Unfortunately, when concerns about the negative effects of marijuana surfaced in the first half of the 20th century, hemp was targeted as part of the problem.

The 1937 Marijuana Tax Act discouraged cultivation of hemp by taxing it heavily.

In 1970, the Controlled Substances Act classified hemp as a Schedule I drug, making it illegal to grow and sell under most circumstances. For investors the good news is the 2018 Farm Bill changes all of that.

Hemp-Based CBD Products Taking the Marketplace by Storm

The return of industrial hemp has farmers, manufacturers, entrepreneurs, and innovators scrambling to make the most of this massive opportunity.

Many investors are weighing their options for getting in on the action.

Analysts’ estimates of market potential for hemp-based products vary widely, from a conservative $1.3 billion by 2022 to an astonishing $22 billion by 2022.

One of the biggest areas of growth is in wellness products that contain hemp-based cannabidiol (CBD).

From cosmetics and skin care creams to dietary supplements, CBD is rapidly gaining popularity among consumers.

The major players in this space are already showing significant gains in sales, which leads to a big question for investors. What are the best hemp stocks to buy that are most likely to generate substantial returns?

Should You Invest In Charlotte’s Web Holdings?

Charlotte’s Web is already leading the market when it comes to CBD wellness products.

It is ranked number one among organizations in this area of the wellness industry, offering consumers a variety of capsules, topical creams, tinctures, and gels.

Year over year, the third quarter of 2018 showed a 57 percent increase in sales, and the company generated nearly $8.7 million in earnings during the first three quarters of 2018.

Charlotte’s Web is likely to remain in its industry-leading position, because it enjoys a large head start.

With a 40,000 square foot research and manufacturing facility and a list of 2,700 retail locations already carrying Charlotte’s Web products, new entrants have a lot of ground to make up.

Charlotte’s Web already cultivates 300 acres of hemp plants, thanks to previous Farm Bill legislation that permitted pilot programs for research purposes. This puts the company far ahead of its peers.

Is Canopy Growth a Buy or Sell?

Canopy Growth [NYSE: CGC] is not yet operating in the United States, and this company hasn’t ever turned a profit.

Unlike Charlotte’s Web, it simply isn’t a major player in the CBD market at this time. However, those willing to accept a certain level of risk see great potential in Canopy Growth.

First, as soon as the US legalization of hemp was announced, the company’s CEO announced plans to enter the US market.

This could mean big competition for Charlotte’s Web, because Canopy Growth is already well-established in other parts of the world.

When measured by market cap, it is the biggest marijuana producer, and it has a hemp operation underway in Canada.

Canopy Growth [NYSE: CGC] has the technology required to extract CBD from hemp, and it recently purchased a Colorado-based hemp researcher.

Perhaps most important of all, Canopy Growth [NYSE: CGC] has an existing relationship with Constellation Brands [NYSE: STZ], which produces alcoholic beverages. This could be exceptionally valuable, as the potential market for CBD infused beverages shows great promise.

CV Sciences: Buy or Sell

Though CV Sciences hasn’t quite surpassed Charlotte’s Web in the hemp-based CBD market, it comes pretty close.

Some analysts believe it is only a matter of time before CV Sciences [OTC: CVSI] takes over the number one spot.

This company produces the top selling CBD oil brand, PlusCBD Oil, which is currently on the shelves of more than 2,000 retail locations.

Year over year, CV Sciences showed revenue growth of 143 percent in the third quarter of 2018, and earnings came in at $3.3 million.

Overall, CV Sciences stock gained 650 percent, which is one of the best results in the cannabis industry for 2018.

Best of all, CV Sciences has an exciting new product expected to come to market relatively soon.

The company is working on a smoking cessation medication that combines hemp-based CBD and nicotine to eliminate cravings for tobacco products. If it is as effective as the company indicates, a large demand for this smoking cessation solution is expected.

Choosing a path to enter the world of hemp investment is a challenge. Learn more by visiting Financhill online for information on the best investment options in every industry.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.

Best Hemp Stocks To Buy: Raking In The Green Marijuana and hemp are the two main branches of the cannabis plant family, but there is an important difference. Hemp is defined as cannabis that

4 Reasons to Invest in Hemp

If you haven’t heard about the rise of the hemp economy you may have been living under a rock. Consumers of all types are driving up demand so now is the time to consider investments in the production and processing of hemp into CBD oil.

1. Explosive CBD Market

The CBD market grew by 57% in 2018, according to the Nutrition Business Journal Hemp & CBD Guide(NBJ). In the study, the NBJ found 73% of natural and organic product manufacturers surveyed are expanding their offerings to include CBD products. The NBJ’s study shows 65% of natural and organic product manufacturers expected to launch new hemp-derived CBD products in the next few years.

U.S. adult-use of cannabis and medical-only marijuana sales reached $8 billion to $10 billion in 2018 while CBD sales were upwards of $238 million, according to Marijuana Business Daily estimates.

Many companies are taking notice of the opportunity, including Kroger. The company announced it will sell topical CBD products in 945 locations in 17 states. The nation’s largest grocery retailer joins a growing list of national retailers, including Walgreens, CVS, Vitamin Shoppe and GNC, that are beginning to stock shelves with the hemp product.

2. Legal in U.S.

In what President Trump called a “tremendous victory for the American farmer,” the 2018 Farm Bill was signed into law which legalized hemp at a federal level, and allows states to have programs for growing industrial hemp commercially. The new law allows for transporting hemp across state lines, expanding export and sales options.

Although it was legal to grow hemp since 1998, producers were required to receive a special production permit from the Drug Enforcement Agency due to its relationship to marijuana. However, now there are fewer restraints of transportation on the plant and less risk for farmers and producers involved.

3. Increasingly Gaining Acceptance from Medical Community

Just as marijuana caught the medical world’s attention, CBD is not far behind. This research-backed list of CBD oil benefits includes uses for CBD oil as a preventative medicine ranging from treating anxiety and stress to reducing risk of diabetes and obesity.

A recent CNN article reports cannabidiol, the non-psychoactive ingredient in hemp and marijuana, could treat opioid addiction, a new study says. Given to patients with heroin addiction, CBD reduced their cravings for the illicit drug as well as their levels of anxiety.

Pets are also getting in on the CBD health trend. Forecasters estimate that almost 10% of CBD could soon end up in products for your furry friends, according to Bloomberg Businessweek. The CBD market could be worth almost $24 billion in the U.S. alone by 2023, with about 7% of sales coming from the pet market. Pet owners are embracing CBD as an all-natural way to alleviate a wide range of creature ailments, including pain, arthritis, and anxiety, without getting them high.

4. Hemp Textiles on the Rise

Hemp is a plant with multiple uses, especially it’s fiber. It’s used mainly in clothing, construction materials, paper, and many more products. China is the world’s biggest producer of hemp stalks, with the government claiming the hemp industry to be over $200M. In a Popular Mechanics article from 1938, there are claims of about 25,000 industrial uses for hemp alone.

The National Hemp Association reports hemp has the strongest and longest plant fiber in the world, resistant to rot and abrasion. In today’s society, hemp fiber can be found in bags, nets, canvas and even carpet.

In an attempt to be more environmentally conscious, Levi Strauss & Co. just created a new clothing line that “feels just like cotton” but is made in part with hemp. Hemp requires much less water and land to grow than other materials, and its overall carbon footprint is about half that of cotton. The hemp used by Levi’s is sourced from rain-fed crops that reduce water waste by about 30 percent.

If you haven’t heard about the rise of the hemp economy you may have been living under a rock. Consumers of all types are driving up demand so now is the time to consider investments in the production and processing of hemp into CBD oil. ]]>