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Can I Buy Cannabis (Marijuana) Stocks on Fidelity, Charles Schwab, TD Ameritrade and Etrade?


Can I buy marijuana stocks on Fidelity, Charles Schwab, TD Ameritrade, and Etrade? Online brokerage firms offering trading and investing in cannabis, weed stocks.



Overview of Trading Cannabis Equities


Recent legal changes in the United States and elsewhere have created a new investment opportunity for an old pharmaceutical: marijuana. Because the drug is now legal in many jurisdictions for various purposes, more companies are sprouting up that are trying to grow like a weed. Many of these businesses are small operations whose shares trade on over-the-counter exchanges. This creates an environment with greater risk, but potentially higher reward. Many of these unique stocks can be traded at Schwab, E*Trade, Fidelity, and TD Ameritrade.


Can I Buy Marijuana Stocks on TD Ameritrade?


TD Ameritrade offers stocks that trade on a variety of exchanges, including the New York Stock Exchange, Nasdaq, and OTC markets. Many companies that grow marijuana will be listed over-the-counter. One that isn’t is Insys Therapeutics. This company trades on the Nasdaq under the ticker symbol INSY. It manufactures a variety of medicines for many different health problems. Its most successful product is Subsys, a pain reliever for cancer patients.

Insys also is developing cannabinoids that can be used for medical problems, such as severe pediatric epilepsy. Because the company manufactures a wide variety of medicines, its stock price will be affected by many drugs besides its cannabidiol. Thus, the stock is inherently diversified.


Marijuana stocks on TD Ameritrade


TD Ameritrade provides a lot of information on this company. The broker’s profile page for Insys shows a chart with 20 years of price history. Equity reports can be downloaded free of charge from several independent stock analysts, including Vickers, TheStreet.com, MarketEdge, CFRA, and Ford Equity Research. The company’s recent SEC filings are also available on the TD Ameritrade website.

INSY currently trades around $13, which is below its 52-week high of $19.96. It has over 70 million shares outstanding, and pays no dividend. The short interest in the stock is over 37% right now, a very bad sign.

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Can I Buy Marijuana Stocks on Charles Schwab?


Schwab also provides access to a wide variety of stock exchanges, both inside the U.S. and around the world. One of these is the Toronto Stock Exchange. Because many marijuana companies are headquartered in Canada, having access to this market is a must for any trader interested in cannabis growers.

One company in particular that trades on the Toronto exchange is the Canopy Growth Corporation. Because Canada has legalized cannabis only for medical purposes, the company is strictly a medical marijuana firm.

Unlike Insys, Canopy Growth focuses on marijuana and does not manufacture other medical products. This makes the stock less diversified, which some investors will prefer. Canopy is also a much younger company, beginning in 2014.


Marijuana stocks on Charles Schwab


Trading under the symbol WEED, Canopy has gone from $3 per share to $13, back down to $7.89, its most recent trade price. The company has a market cap of $1.3 billion, which is pretty large for a cannabis-only company. Unfortunately, its most recent EPS is negative, indicating a losing period. The stock must have a lot of interest because its average volume is 1.25 million shares. It does not pay a dividend.

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Can I Buy Marijuana Stocks on E*Trade?


Several exchanges are also available at E*Trade, including the OTC markets. A cannabis stock that trades on the OTC QB is Aphria, Inc. (ticker APHQF). The stock also trades on the Toronto exchange under the ticker symbol APH.

Aphria sells medical marijuana of various strains. It also conducts research and development in cannabis oil products. One of Aphria’s subsidiaries, Cannway Pharmaceuticals, specializes in helping veterans and first responders.

E*Trade’s stock profile page has in-depth information on Aphria. Starting in 2015 at 71 cents per share, the stock has risen to $4.087. That’s a 576% increase in just over 2 years! The company has issued 138 million shares, which produces a market cap slightly above half a billion dollars. The stock’s average volume is 97,000 shares daily. An equity report from CFRA is available on Aphria free of charge via the E*Trade website.


Marijuana stocks on Etrade


E*Trade also provides information on insider activity, such as planned sales and the award of stock options. The broker’s website shows when the company’s next earnings date is, but doesn’t show much in terms of past results. The stock currently has a price/earnings multiple of 67.64, which is very high. Aphria does not pay a dividend.

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Can I Buy Marijuana Stocks on Fidelity?


Special equipment is required to grow cannabis, and one company that manufactures it is GreenGro Technologies, Inc. The company makes light deprivation greenhouses, hydroponic supplies, modular grow rooms, among other supplies. GreenGro’s stock trades over-the-counter under the symbol GRNH.

Fidelity provides access to the OTC marketplace. The broker’s stock profile page for GRNH shows data back to 1995. It started at $30, hit a very brief high of $4,000, and now is trading at just 4.75 cents. Despite the low share price, there is a lot of interest in this company. The stock’s average 90-day volume is over 2 million shares daily. Fidelity does not show any analysts who cover the stock.


Marijuana stocks on Fidelity


The broker’s website does show other information, including news and events that relate to GreenGro. Information on ownership and insider activity can also be found. Unfortunately, there isn’t a lot of financial data available on the company. There is no information on price metrics, such as P/E ratio. The broker shows no information on earnings or earnings growth.

GreenGro does not pay a dividend. SEC filings from the company can be accessed on the Fidelity website, but they are all more than 10 years old. There is recent company news, however.

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Recap


As more jurisdictions around the world accept the idea of cannabis use at least for medical purposes, the investment opportunity in this space will continue to grow. Be sure to find a broker that offers access to both the American OTC exchanges and the Canadian market, where most of these stocks are found.


Updated on 7/7/2017.


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