This New “Cannabis Testing” Stock Could Absolutely Skyrocket

Cannabis Stock
We’ve been talking about cannabis investing here at Money Morning for quite some time simply because of the huge profit potential – even now – for investors. But cannabis, or legal marijuana, is quite a diverse sector. There are pot growers, products manufacturers, researchers, financiers, and back-office providers.

California and Canada have legalized recreational marijuana use, and there are dozens of states lined up to follow suit. The global marijuana market will be worth nearly $60 billion in less than 10 years, according to ArcView Market Research.

However, one need that still seems to be underserved is cannabis-testing devices. And today, we’ll show you a cannabis stock that could skyrocket as these products begin hitting the market.

No, not the kind that tests a product’s quality or potency. But rather, the kind that tests for a driver’s level of impairment. That’s right, devices for law enforcement.

Whether pot is legal or not, getting behind the wheel when under its influence is still dangerous – and justifiably still illegal. Marijuana is the single most frequently found drug in the blood of drivers involved in all vehicle crashes, including those that are fatal.

The 4 Cannabis Stocks to Buy Now – Profits of up to 1,000% could be likely this election year!

According to Cannabis Support, an Australian cannabis information organization, using cannabis slows reaction time and the ability to make decisions. Anyone driving under the influence of cannabis increases their chances of having a car crash by up to 300%.

There are still very few products available to satisfy the demand for testing devices, and that means the right company in the right place is perfectly situated to capitalize.

Money Morning Chief Investment Strategist Keith Fitz-Gerald found just such a company.

This Cannabis Stock Is at the Forefront of Marijuana “Testing”

The company is Cannabix Technologies Inc. (OTC: BLOZF), which makes a breathalyzer capable of detecting cannabis. It could revolutionize law enforcement by giving officers the ability to instantly determine the degree of impairment, allowing them to take swift and appropriate action.

If the global alcohol breathalyzer market is nearly $500 million, cannabis testers could have a similar market. Every squad car out there on patrol would have a unit “on board,” just as it does medical kits and other response gear.

As with many companies in the cannabis sector, there is a significant element of risk. But as investors know, big potential rewards do come with elevated risk. That does not mean to stay away, but rather to have a plan to control that risk and set yourself up for the explosion in share price that is surely on the way.

Cannabix has a market capitalization of $104 million, and that puts it in the realm of micro-cap stocks. That is one step below small caps, so it is even more important to follow a plan.

Fitz-Gerald suggests buying the stock below $1.30 per share and not chasing it should it rally above that price before you do.

He said speculative investments like this one – especially when they’re micro-cap companies with breakthrough technology – are all about how you buy, not how you sell. So you don’t want to make the mistake of paying too much in the first place.

The good news is that you can put the stock’s volatility to work for you. Tuesday, it closed at $1.07 per share as a nice gift for you. Fitz-Gerald says to buy now and then sell half of your shares when the stock price doubles. In that way, you essentially have a position in the stock at zero cost (before commissions).

If the price drops to $0.80 per share, you can add to your position and prepare for another ride higher – where once again you sell half. With volatility, you might be able to repeat the process several more times.

If the company gets it right, the potential for monster gains is there even if you cannot buy and sell over and over again. At current prices, if it just returns to its 52-week high, you would nearly triple your money.

Election Year Update: Cannabis Landslide 2018

Marijuana stocks surged up to rare 12,400% gains in the last election year.

But this veteran analyst has unveiled 16 reasons why cannabis stocks will make investors incredibly rich in the election year of 2018.

Four cannabis stocks could be destined to post the greatest profits in 2018. Learn more here in this FREE video…

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