[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

[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.

[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.

[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.

[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.

[Mariner]

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

[Vendome]

TermLimitsforAll Since Jan 26, 2017

[djone]

thoughts on investing in an industry

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.

[MomwithHope]

There are better ways to invest, like defense or semiconductor mutual funds.

[lacrew]

“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.

[moovova]

Good chance your investment will go up in smoke.

[ameribbean expat]

And good luck getting into bankruptcy court when the feds think your product is illegal.

[plain talk]

I would see what morningstar analysts say about the stocks. I can check later as I have a subscription.