written by reader Marijuana Stocks

By Anonymous Questions, November 21, 2012

I was wondering what your take on the legalization on marijuana stands for investors? Any picks or suggestions on what to look for on this?

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

guest

12345

This site uses Akismet to reduce spam. Learn how your comment data is processed.

8 Comments
Inline Feedbacks
View all comments
Travis Johnson, Stock Gumshoe
November 21, 2012 10:09 am

Sorry, I don’t think it means anything for investors right now. No one’s going to get rich on the stock market with a company that sells an illegal product — we’re seeing relaxation of the laws in many states, both to decriminalize in a soft way and to allow for medical marijuana, but it’s still an illegal substance under federal law and it’s mostly the realm of small growers and “medical” retailers.

All of the pitches I’ve seen for marijuana stocks look like opportunistic pump and dump scams to me, though I confess that I probably haven’t glanced at every company. If we go to full legalization in every state and mass, regulated production like we have with tobacco, there may be some companies who are early on the jump in building plantations or retail networks who could be profitable, but I think that’s extremely unlikely. Marijuana companies, even the small ones who might be legitimate, are extremely constrained in terms of the advertising they can do, the financing they can get, and the planning they can do, knowing that it wouldn’t take much of a switch in the political tide — or much of a slipup in their operations — to have DEA agents put them out of business.

Most of the marijuana stocks that are close to being “real” are actually biotech stocks that are trying to develop treatments based on compounds that are in marijuana — like the one we saw teased last year, GW Pharma, that did pretty well for a while but has fallen off in 2012.

Add a Topic
5971
Add a Topic
4091
Add a Topic
5916
👍 16001
M  A Johnson
Member
M A Johnson
November 22, 2012 9:19 pm

Any comments on government dictum report by N. Hodges how to really get rich?

👍 2
M  A Johnson
Member
M A Johnson
November 22, 2012 10:30 pm

I’m guessing it all about tax liens.

👍 2
sc49
Member
sc49
November 28, 2012 9:59 pm

Hey there!
Just for grins, here’s the list of MaryJane stocks that were provided in an Investment U rehearsal of the industry following the recent-elections-addition of 2 states to those already ‘legalizing’ (e.g. taxing/regulating) the ‘substance’: GWPRF. MJNA, TRTC, CBIS. As a part-time resident of 2 of those states – primarily ‘the land of fruits & nuts’ and an acquaintance of many old ‘pot-heads’ and one or two characters who’ve allegedly paid of their properties with a farming income, I decided some time ago to invest in the sector ‘legally’ by throwing a few expendable (?) investment bucks at CBIS…not exactly a ‘high’ (euphoric experience) but not a real ‘downer’ either (unlike many of the other ‘pharma’ teases touted in the plethora of investment e-letters I get. For what it’s worth – regardless of your or my own moral compasses – the ‘chill’ portion of the current generation generally considers ‘herb’ to be less harmful than even the other currently-legal ‘natural drugs’ (alcohol. tobacco, caffeine, etc) which have provided some comfort, cognitive/energy enhancement or ‘medical advantage’ to the human experience; each of which has historically faced its own struggles with social morality & legality. Even currently within the realms of pharmaceutical research, natural elements of tobacco are being tested for health improvement & disease cures. The evidence for marijuana’s curative ability in the treatment of glaucoma is well-documented as is its abilities in pain management. Some even allege that, at least, certain types of cancer are also within its scope of beneficial treatment. The probability exists that this newer ‘naturalistic’ segment of the voting public will eventually replace their elders who associate a moral stigma with this particular herb. The recent evidence of states’ elections which have approved its ‘legalization’ may just be the wave of the future so many investors look for when choosing a ‘home run’ stock…is it really necessary that we re-engineer every natural substance and thereby empower only the high-tech pharmaceutical industry and governmental control agencies to ‘discover’ what is good for our health or can we – maybe – figure some of it out on our own? I’d really like to hear back…What do you think?

Add a Topic
256
Add a Topic
282
Add a Topic
996
AlterIn
Member
December 7, 2012 2:41 pm

C.W. A synthetic THC pill seems to have been available since 1985 (re: http://www.medicalcannabis.com/Indications-for-Use/overview), and apparently gradually shifted into more and more applications. Haven’t had time to look any further, to see if this is what was recently teased for Patrick Cox (Breakthrough Technology), as “Live 20 Years Longer”, or “Don’t Smoke It, Swallow It”.

Add a Topic
951
Bob
Member
Bob
December 7, 2012 6:34 pm

If legalization is really coming, then the best investment might be twinkies.

Paulo
Guest
Paulo
May 23, 2013 3:25 pm

The will of the people is to legalize, and there are more states legislatively supporting medical marijuana as an acceptable and legal practice. With that, I find it hard to find a down-side. Ideally, I would look for companies that hold patents in relation to marijuana. Rationale is that this will be medically legalized first, which means those patents can and should start to generate income as legislative barriers come tumbling down. If you believe that the government is not comprised of the dumbest of the population, this sounds like a good bet for the future. GW Pharma, from the list that I compiled, seems to be the most expensive, but that’s probably because they’re not solely laying down their interested on medical marijuana. Most of the companies seem to hover ~.25 per share. That’s the most attractive and demonizing property for those companies. At that price, you can risk less money and get more shares, which is an ideal investment scenario when you’re looking for growth (and it is hard to find very concrete evidence that puts a non-movable stalwart in the path of legalization). At the same time, a lot of seasoned investors seem to discredit any stock under $10. I put in about $42 and am now holding 269 shares (MJNA), my personal expectations are that it’ll hover around the same field, with real growth/profit obviously dependent on legislation so I’m sticking to it for a longer-term investment. If after 2 or so years it is still mulling around in the pile of cheaper stocks, I’ll re-evaluate my perspective and attempt to at a minimum sell off at the same price I bought or pennies higher.

Add a Topic
4091
Add a Topic
4091
Add a Topic
996
CryptoInvestor
Irregular
CryptoInvestor
December 11, 2017 7:21 am

I’m invested in Canopy Growth (TWMJF in US), the dominant company in Canada. They are growing strong including retail supply chain deals and wholesale contracts to Germany and other countries. Travis did a recent uncover of Canopy from one of the stock newsletter leaders recently, which is how I learned of it. Thanks very much.

This is the most legitimate pot company I’ve located. While they won’t do business in the US – citing legal complexities at the federal level, Canopy is poised to do well both at home and abroad, and the EU in particular. I believe year over year revenue growth is roughly 100%. The recent 10% investment by Constellatiin (big alcohol) provides Canopy with further legitimacy. And they seem well capitalized now for rapid expansion.

Tons of info on the net about Canopy so do your own DD. Look for a recent interview with their CEO, which was excellent. This is my one and (currently only) pot stock, but I’m considering a half position in MedReleaf (MEDFF) – the big market seems to be the oil, not the bud, and that’s their space. Still researching.

Good luck.

Add a Topic
4091
Add a Topic
5087
Add a Topic
5617
👍 128

We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies.

More Info