Pot companies and startups are the next big thing in the market

Cannabis has become a disruptor in the field of medicine. Seen merely as a controversial drug years ago, it has evolved into a sought-after medical supplement in various areas. In the United States, a majority of the states have legalized marijuana in some form, and many are expecting that it won’t be long before the plant becomes fully legal from coast to coast.

Moreover, Prime Minister Justin Trudeau confirms that by October 17, recreational marijuana will be legal in Canada, making it the first G7 country to have full legalization of recreational marijuana.

At the turn of the century, tech stocks were big as people began placing their funds on top companies like Facebook, Microsoft, Apple, and more. A lot has changed since then as the recent developments have made marijuana stocks the next big thing in the stock market, with top investors and brokers eyeing companies involved in the cultivation, research, development, and distribution of marijuana.

The driving force behind the surge of pot stocks in the market is its growing acceptance. Major markets are already getting behind the plant, and the negative outlook on marijuana is slowly dissipating. In a couple of years, the industry is set to finally reach its peak, and that will happen once the rest of the world sees why cannabidiol (CBD) is good for them.

Studies have shown that CBD is a wonder in the world of medicine thanks to its various properties. Some of the proven benefits include inflammation and pain relief, reduced risk of cancer and heart diseases, and many others.

The demand for marijuana products is expected only to grow from here on out. As major markets such as the United States and Canada continue to set new regulations for the improvement of the industry, competition between companies is expected to become tighter. This is one of the main reasons why investors are already keeping an eye on cannabis companies with impressive market performance.

If market performance is the basis, then one name that should come to mind is PotNetwork Holdings, Inc. (OTCMKTS:POTN). The company directs its resources into the research and development of CBD products, while the distribution phase is left to Diamond CBD, Inc its fully owned subsidiary. Currently trading at $0.3649 per share, POTN’s stock is ideal for micro-cap investors. In terms of growth, it is still far from reaching its peak, meaning that there is more room for substantial gains.

POTN’s good standing in the stock market is attributed to its social impact projects, which some have reached out to disadvantaged youth in Manila and damaged habitats in Africa. Aside from this, the company’s clear understanding of where it can make the most helps in securing a steady stream of income.

Aside from having physical distributors in various outlets, Diamond CBD focuses mainly on online distribution, which is the larger market for its products. In the past year, POTN had revenues of $14.49 million and gross profits of $5,180,865.

To further increase its credibility for investors, the POTN’s board is planning to file a Form 10 to the Securities Exchange and Commission no later than June 30. Aside from gaining a better reputation among its investors, POTN also aims to get acquainted with bigger investors in the future.

Pot stocks might be the next big thing in the stock market and backing these companies could be key to getting big returns. Despite the good performance of certain companies, investors should be very discerning before making any major investments as not all pot stocks can provide substantial returns.