There are 2 main methods of growing marijuana: outdoor and indoor. Outdoor methods are pretty straight forwarrd and use traditional methods just like you would growing corn or any other crop. If you're growing outdoors you can get a much better yield but aren't going to get the quality as you would if you grew indoors. Indoor growing gives you more control of the environment so the quality is much better but the yield in most cases is going to be substantially smaller. Since quality is the name of the game today, most marijuana dispensaries are using an indoor method which requires purchasing hydroponics equipment. Hydroponics equipment costs a lot of money, especially when you're talking about growing thousands of plants indoors. The equipment along can cost hundreds of thousands of dollars, if not millions. The companies that make this indoor growing equipment are trying to rake in on the green rush and investing in the companies themselves can help you cash in as well. However, this industry is very competitive so while some may thrive, most will not. It's important to do your research when investing in a hydroponics company and not only read their balance sheets but have a good understanding of what their marketing strategy is to lock in future business. A great sales team and excellent selling point (basically what separates them from the competition) are the 2 main marketing points I would look for in any hydroponics business. I would definitely keep my eyes open for hydroponics companies that have contracts with dispensaries that are looking to expand into other markets. These contracts are the closest thing to a guarantee you will find in the industry and could mean a huge boost in future sales. One thing to note with hydroponics is that they are not taking nearly as big as a risk as a marijuana dispensary is, so the payout is usually not as good. Another thing to consider is the margins of these companies aren't going to be nearly as good because of the size of the market and competition involved. If you're looking to invest in marijuana stocks, hydroponics might be a safer play. If you've invested in hydroponics or plan on it, we'd love to hear your story so please contact us here.