Solving Curzio’s “The Marijuana Investment Story No One’s Telling”

Sniffing out the "backdoor" pot legalization story teased by Phase 1 Investor

Well, again Frank Curzio’s Phase 1 Investor wins the prize for “teaser ad most Gumshoe readers are asking about” … so let’s give it a gander for you.

Phase 1 is a premium-priced ($3,500 is the current “on sale” cost) small cap newsletter published by Stansberry, and it tends to be among the most-requested letters for the Gumshoe treatment — no doubt because it’s too expensive for most individual investors to sample, and because they tend to tease intriguing little small-cap stocks in technology, biotech and natural resources… often stocks moset folks haven’t heard of, so curiosity rages.

And what piques it this time around? Marijuana stocks.

Ugh, I know — I can hear you sighing from here. Marijuana stocks are among the most hyped, ridiculous, pumped up names in the market. Every pump-and-dump operation that thought they could create a 3-D printing stock out of nowhere last year, or a gold mine stock with no assets a couple years ago, has now decided to sell itself as a legalized pot story, with dozens of companies doubling, tripling or better in the last year or so. There are no doubt some real companies in the cannabis space, but I’m sure they’re absurdly expensive if they exist… and there are so many scams that it hardly seems worth researching all the hints that fly our way.

But still, Phase 1 isn’t a pump-and-dump operation (though their subscribers may sometimes benefit from new attention brought to the small cap stocks they favor) — whatever stock Curzio is teasing must have at least something “real” to it.

So what is it?

Here’s how he sells the idea, by first introducing a note of caution:

“… until today, we’ve never even considered recommending one of these stocks.

“Why?

“Several reasons…

“First… because most stocks in the marijuana industry are already ridiculously overpriced.

“Like the dotcom boom of the late 1990s, the hype has far exceeded the reality.

“Take Medbox, for example, the company that’s developed a biometric vending machine for legal marijuana. Medbox recently had a market cap of over $1.1 billion.

“Yet, they brought in just $5 million last year.

“That means investors were paying 200 times what the company generated in sales.

“And second… there are a lot of indirect plays on marijuana that may or may not pan out. Like big tobacco companies. Sure, the Altrias and Phillip Morrises of the world might one day dominate this market. But there are a lot of “ifs.” There’s no guarantee they’ll be able to corner the market, for example… or that they’d even want to. And these tobacco giants are so huge – the added business from selling marijuana really wouldn’t move their stock much higher.

“The point is, many direct plays in the marijuana market have already soared. And there are simply too many “ifs” to consider an indirect play right now.”

Then we get the, “but wait!”

“I’ve found an incredible and totally unique way to play the marijuana boom… and capitalize on this explosive, new market – that limits our exposure to these pitfalls…

“It’s THE marijuana investment practically NO ONE is talking about.”

What is this investment?

“this company offers a secret, backdoor way to own one of the most potentially lucrative marijuana investments in the world… which has leapt as high as $45… for less than $10 a share.”

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