TermLimitsforAll Since Jan 26, 2017
Posted on 03/07/2017 8:12:51 AM PST by 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 Since Jan 26, 2017
This seems to be a fad which will soon pop, re: pet rocks, beanie babies.Get in early and sell off before it peaks.
Personally I've witnessed what this stuff has done to the lives and health of some friends so soon the public will realize the downside too.
There are better ways to invest, like defense or semiconductor mutual funds.
ScottsMiracleGrow stock symbol SMG
I got in SMG (scotts) about a year ago (paid about $70 per). It’s done really well. That said, who knows what the future holds and buying at todays price could be a bad idea.
Interesting, but recently my oldest daughter asked me about “pot” companies as an investment too. I told her I didn’t think any of them were publicly traded but only privately held. And outlined the problems they’ve had “gearing up” for credit cards, cash deposits, etc.
But it might be a interesting consideration for investment if it ever makes itself available.
And yet, publicly-traded tobacco stocks have displayed good growth and paid respectable dividends for... geez, forever.
Same is true for casino stocks as well as breweries / distilleries.
Regards,
“Pot Stocks” sounds like a scam. Its hard for these businesses to open a bank account, due to federal jurisdiction over banking...I can’t see how they could issue a legitimate investment instrument.
I think if you want to invest, you’d do it directly with one of the businesses, set yourself up as a partner, contract, etc.
Would I invest? It is tempting...but risky. I’d guess that a large portion of the pot legally sold in Colorado is sold to people from out of state (which actually may make it illegal). Anyway, what happens if I invest in a Colorado pot operation, and suddenly the adjacent states legalize it? There goes a big chunk of my business.
These are “penny stocks”?
Good chance your investment will go up in smoke.
I love my tobacco stocks...
...but their biggest growth market is Asia.
The odds of pot being legalized in China, Japan, etc are very slim, IMHO.
And good luck getting into bankruptcy court when the feds think your product is illegal.
I would see what morningstar analysts say about the stocks. I can check later as I have a subscription.
Yes...Canada and U.S. Canada is supposed to legalize MAryJane soon AFAIK!
Good graphic.
HOWEVER, with that being said, I do not advise any of my retail clients on "pot investments" per se, but if they really push me, I'll recommend an equipment supplier. Just like the gold rush in the 19th century, it wasn't the wildcaters, prospectors, or gold mining companies that made 1000% profit, it was the hardware store.
If you don't want a supplier, and still want a "vice stock", I do hold BUD and PM equities, both with great balance books and decent 3.7%+ div/yield.
These stocks are insanely cheap (not even considered penny stocks they are so low), so if you have some “mad” money, you can get hundreds of thousands of shares for hundreds of dollars. Just don’t bet your future on them.
From the forty-odd stocks listed under the weed-classification, I’d say that 20-percent are under 10-cents (which says the direction of things right now).
CARA and IIPR are pulling $15-$17. ABBC is pulling $63.
The rest are between 10-cents and $2.
If there were ten to twenty states doing business, then it might be worth getting into. But this is not an industry where I’d put any money other than than putting my own shop within Colorado. My guess is that half of the forty might be out of business in two years unless expansion in the states occurs.
The reasons why are too numerous to list, but given the recent trends, you'd be foolish to ignore them. Here are a few:
Recreationally, it has a well-established user base that spans generations, the same as with alcohol and tobacco. However, unlike tobacco and alcohol, it can be consumed in various forms and in numerous ways, some healthy, some very unhealthy.
Medically, it offers an easy to grow form of pain relief that offers an inexpensive option to opioids. If you can eat a brownie and feel better, why seek a prescription to a potentially debilitating addiction?
Additionally, as many tokers will tell you, marijuana has a strong, positive effect on the digestive system. Again, if you can eat a brownie and feel better, why seek a prescription for your irritable bowels that has as many side affects as benefits?
Marijuana has been in medicinal use by numerous cultures for centuries. Here, too, just not "officially" until recently.
Nutritionally, the protein in hemp seeds is a "complete protein" and hemp oil is loaded with healthy fats and related organic chemstry that's good for the body.
Additionally, hemp fiber has multiple uses, is easily and quickly grown and was one of early America's most important crops.
It was planted during WWII for the war effort.
In my youth in early 1970s rural Iowa, we used to hunt the 'ditch weed', often found along country roads and in low spots where farmers didn't plant, for pheasants and quail. Good hunting, too, as the seeds were good for the birds, the same as with humans.
Our fear of drugs and alcohol is well founded, but it blocks our common sense and makes us war against our human nature, with real casualties on both sides.
God made it and it's loaded with great stuff. It's way past time to get over ourselves and our fears.
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