This one’s not exactly a tightly-controlled secret (though the ad makes it sound like one), but we’ll put the Thinkolator on the case anyway… we’ve gotten lots of questions about the latest marijuana pitch from Jimmy Mengel, who is advertising subscriptions to his Marijuana Manifesto service ($1,999/year) — seems that plenty of people want to know what his secret “Apple of Pot” stock is, and, well, we aim to please.
The general push of the ad is that you have to be invested by July 1, mostly because Mengel thinks that the pending move to full recreational legalization in Canada on that date is going to spur huge investor interest and open up new markets and get everyone excited… but this isn’t a Canadian pot stock, so the impact is indirect. (And yes, Canada is moving to that full legalization this Summer… though there’s plenty of talk about it being delayed meaningfully beyond that July 1 date, presumably both because of implementation complications and legislative foot-dragging.)
This stock apparently has some connection to the “Silicon Valley of Pot”, which is also called the “epicenter of the cannabis movement” and referred to obliquely in a few other ways, and that’s clearly a reference to the historical center (for last 50 years, anyway) of the marijuana cultivation movement in the US, Humboldt County and neighboring areas of Northern California.
Here’s a little snippet that covers his big picture argument:
“Canada will become the first ‘rich’ country to make pot legal. Not just decriminalized or unenforced but 100% lawful.
“Investors worldwide — and especially investors here in the United States — will be keeping a close eye on how it unfolds…
“They’ll see how early investors in legal marijuana firms stood to book gains as high as 11,084% and how new millionaires are minted in the process.
“You can bet when this happens, they’ll turn their attention to the United States…
“Where the marijuana market is set to top $35 billion by 2020…”
And then we get into the specifics about the stock…
“I say the Silicon Valley of pot is the most exciting marijuana opportunity I’ve ever seen — specifically the secretive company working on Project IVXX that’s been dubbed the Apple of Pot! ….
“Like Apple, it’s working on a hush-hush project, called Project IVXX.
“It took me two weeks to persuade the investor relations manager to get me on the phone with the CEO…
“Even then, it wasn’t easy to get the information I needed. But I did. And for the first time in financial publishing, I can reveal exactly what Project IVXX is…
“But before I go on, you should know that I have permission to share the details with you today. What you’re about to hear is akin to having insider information on the iPhone before the public knew it existed.
“Project IVXX is a program for creating and producing proprietary blends of marijuana.”
That seems a little silly — who would have a secret program for producing proprietary blends? Every manufacturer is trying to develop consumer-focused brands in marijuana, certainly all the pot companies are aware that it wasn’t the generic tobacco farmers who became wealthy, it was the developers of the brands like Marlboro who created consumer demand and loyalty (addiction helps with the loyalty, of course).
That’s what has mostly kept me out of marijuana investing, the notion that the plant itself is relatively common and easy to grow, and that the profits in the end are likely to go to whatever the most powerful consumer brands end up being… and we don’t know that yet (and I don’t know the industry enough to identify an up-and-comer brand with any great insight).
And of course, as we’ll see in a moment, this “Project IVXX” isn’t secret at all, it is actively marke