There are plenty of intriguing investment opportunities on Wall Street, but none has been more smoking hot of late than marijuana stocks. In just under five weeks (on Oct. 17), recreational marijuana will become legal in Canada, marking the first time in history an industrialized nation had given the green light to adult-use weed. And with this legalization comes the potential for billions of dollars in added annual revenue.
As you might imagine, pot stocks directly involved in the physical cannabis supply chain — i.e., growers, processors, distributors, and retailers — have been the likeliest to see their share prices soar. Investors with the foresight (and luck) to hang onto marijuana stocks since prior to 2016 have probably made a quadruple-digit return on their investment.
These behind-the-scenes stocks should benefit from the legalization of cannabis
But the thing is, the trickle-down effect of the cannabis industry means there will be plenty of winners that aren’t exactly in plain view. There’s an entire ancillary industry in the background helping to fuel the success of the weed industry, and many of these companies could see a boost in their sales and/or profits as a result of the success of the legal pot industry.
Some of these companies you’ve probably heard of, like Scotts Miracle-Gro, which is predominantly a lawn and garden care company but also has a subsidiary focused on hydroponics, lighting, soil, and nutrient solutions for the medical cannabis industry. There’s also Kush Bottles, which is a…
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