Stock question

03/07/2017 | self

[TermLimitsforAll]

So although I'm not advocating the legalization of pot in the USA I had a conversation with my poker buddies a couple weeks ago and one in particular was mentioning he'd invested money in "pot" stocks. I know of the medical marijuana industry through their support of legislation in my state of Georgia. What are your thoughts on investing in an industry that could be thriving in the future? I don't see the Federal Government legalizing the use of pot other than for medical use. I've heard talk of FEDGOV leaving it up to the states however. I'm not a very aggressive investor but if this is something worth looking into I'd appreciate some insight from our esteemed Freepers on this subject. Thoughts???

[TermLimitsforAll]

I don't see how this could be a thriving industry when it's difficult for them to even open a bank account with some institutions.

[Red Badger]

Just because you can doesn’t mean you should....................

[WKUHilltopper]

These are publicly traded?

[AppyPappy]

Considering what happened to tobacco, I would probably avoid them.

A product that harms you, even with just normal use, is lawyer bait.

[gaijin]

So many of the users enjoy growing their own if only to pretend that there some type of rebel.

I would be very cautious about such stocks.

What are the barriers to entry for newcomers?

almost nothing.

[BipolarBob]

poor choice of stocks at this time. Not worth it. If you want to make money on the pot business buy ScottGro or ancillary services.

[waynesa98]

I wouldn’t. Realized medical/recreational pot is still illegal federally. Thus Sessions can go after all sides of the equation including the banks. Until federal legislation moves you at the whim of the executive branch, and the Trumpster doesn’t even drink.

[Emergencyawesome]

Pot growers can’t even put their money in the bank

Your business is legal, but you can’t use banks. Welcome to the cannabis all-cash nightmare

http://www.latimes.com/local/abcarian/la-me-abcarian-cannabis-cash-20170129-story.html

[Oldexpat]

BLOZF. It is Cannabix a company that is making a weed breathilezer.

[pepsionice]

List of such stocks:

AERO
ABBV
ACAN
ACBFF
KAYS
AGTK
AMMJ
APJQF
ATTBF
AXIM
ENCC
TECR
PRRE
CBDS
CNAB

It’s not a complete list. As for investment into the area...no one except individual shops is really showing much of a trend on profits. Maybe if this was legal in 25 states, it’d be a real industry. What I see is a bunch of nickle and dime stocks waiting on more states and more legal business. You can’t survive off the limited business that you have at present.

[TermLimitsforAll]

That’s what I told them also. It’s a risky bet. President Trump wants to stem the flow of drugs across our border, what would make a person think that the legalization of pot can occur. I think it’s a pipe dream, no pun intended.

[Oldeconomybuyer]

I would never invest in anything that’s against federal law. It’s like investing in sanctuary cities. That said, if you go ahead and invest in pot don’t put in any more than 2%. MAX.

[TermLimitsforAll]

I guess so. I hadn’t really done the research and my first thought was to put it on this forum since there are many sharper minds than my own to weigh in on the subject.

[jimbug]

I live in Pennsylvania. Years ago, the state government initiated a huge public relations effort to convince the voters that legalizing casino gambling (e.g. The Sands Casino complex in Bethlehem, Pa) would solve all the state's budget problems forevermore. Didn't work.

Now, having legalized medical marijuana last year, they are already talking about legalizing this drug completely and eliminating all penalties for personal use.

This is going to degrade our civilization all the more,and I would not want to stand before God and try to explain how I tried to profit from the destruction of His creation.

If you want to invest, invest in things that build society, not in things that destroy it.

[TermLimitsforAll]

Is ScottGro part of Scotts? I’d guess that’s the medical arm of the industry.

[SaxxonWoods]

I wouldn’t invest in it due to high risk but banking must be available in Colorado. How else would they pay the huge tax revenues the state is taking?

The state only accepts checks or credit cards. And credit cards don’t take cash payments.

[mountn man]

I worked with a guy this fall who was an amateur investor in pot companies.

I've done some very rudimentary looking into the companies he was involved in. Most of these companies weren't into growing weed itself, but were ancillary companies.

Also, its important to note that there might be a huge market in actual MEDICINES that are developed off of pot.

I've never been a pot proponent.
But, I might not have a problem investing in ancillary businesses. Now could be a good time to get in, as a lot of these companies are very cheap at this point.

Comes down to what you are comfortable with.

[mad_as_he$$]

I have a pot growing facility in my work neighborhood. They spent a ton of money making the building ready for the operation. I would guess $500-750,000. A large chunk of it was on a better vault than most banks have.

[Mariner]

It’s like buying stock in Seagrams or Phillip Morris.

[TermLimitsforAll]

Amen to that. I work hard for my money and I thought number one that the moral ground for this was soft. For me it’s illegal in our country and therefore not a viable investment strategy. To be fair with my friends however, I hadn’t thought to ask if they’ve invested in foreign stocks or US stocks. I’ll get more info next time we meet.

I would be really uncomfortable telling my daughters, who I pride myself on raising in good Christian fashion, that I’ve invested in something illegal in our country. That’s like investing in the porn industry. I only pondered the thought to see if I was missing the boat on something coming down the line. If it were legal one would have to ask the question, What would GOD think of this?