Toke Up Profits With These Marijuana-Related Stocks (MJNA, COIN, PMD)

Milton Friedman, a widely-followed economist, made no excuses in his support of the legalization of marijuana. In fact, in 2005 he joined over 500 economists in signing An Open Letter to the President, Congress, Governors, and State Legislatures on the benefits of legalizing marijuana. While some states have already legalized the use of medical marijuana, these economists are arguing that legalization would have a number of other benefits. First, it would save $7.7 billion per year in state and federal expenditures on prohibition enforcement and produce tax revenues of $6 billion annually if marijuana were taxed like alcohol and tobacco. Second, marijuana-related crime would fall, and drug-related arrests would plummet. Perhaps the biggest point of support for pro-legalization economists is the potential organic growth (no pun intended) that could result. A legalized marijuana trade would translate into new jobs and increased consumer spending - something our nation desperately needs. Indeed, a number of companies that are related to marijuana already exist. Here are a few examples that could skyrocket if the road to legalization advances: Medical Marijuana, Inc.

offers services to marijuana grow collectives to ensure rules compliance. The company helps other organizations manage legal and tax obligations, and is a great stock to look at if investors expect more marijuana legislation to follow. Converted Organics Inc.

operates processing facilities that use food waste and other raw materials to manufacture all-natural fertilizer and soil amendment products combining nutritional and disease suppression characteristics. Converted Organics products maximize the grow potential of marijuana plants, while minimizing disease. The stock would surely benefit if marijuana fertilizers become more popular and widely-used. Finally, Psychemedics Corp.

provides testing services for the detection of abused substances through the analysis of hair samples. Because some employers will always want to test their employees for smoking pot, companies like Psychemedics provide the products to do so. The stock has slid below $0.50 since trading at $1.20 in May, and presents a unique buying opportunity. The stock has ample upside potential, and should be added to watch lists.