Today’s article is a lightly updated revision of one that appeared on November 3, 2016, when an earlier “pre-election” version of the same ad was running. The hints about individual stocks are the same in the ad today, as is much of the rest of the language, though back then it was an urgent “pre-election” push and now Ray Blanco is pushing this as something that requires action by July 1. I’ll post some charts about how the stocks have done at the bottom (and yes, a couple of these stocks were closer to being guesses, given the limited clues).
What follows has not been updated since early 2017, though we’ve checked to see that the clues in the ad that’s circulating now remain unchanged so our answers, including guesses, remain the same. I’ve left all the original comments appended, some of which suggest better possible answers for your consideration.
I’m a little bit of a fuddy daddy when it comes to marijuana stocks — not because I’m necessarily against legalization or recreational use by adults, but because I don’t like being in the middle of wild stock bubbles where there’s no rational justification for valuations.
With that buzzkill out of the way — what is the secret “$50 marijuana stock blueprint” that Ray Blanco is selling as a way to get subscribers to his Technology Profits Confidential newsletter? Let’s dig in and see what they say.
Here’s a bit of intro from Blanco:
“… there are over 4,000 companies that trade on the stock market…
“Exactly 350 of them are pot plays…
“And I’ve run every single one of those 350 companies through my five-part filtering system…
“And based on my stringent five-part assessment of the companies in the marijuana industry, I’ve pinpointed exactly four penny pot stocks…
“That can eventually make you a millionaire.”
The “$50 Blueprint” part is a taste of absurdity, that’s based on his “Real Life Example” of how you could have turned $50 into $2.7 million using a few pot stocks — that’s one of the ridiculous penny stock chains you see touted every now and again, where $50 turns into $1,300 in a few months because you ride one explosive marijuana stock, then turning that $1,300 into $40,0000 on another pot stock that jumped by 3,000%, then put that $40,000 into one final stock that jumped by 7,000% in a few days and presto! It turns into $2.7 million in a little less than two years.
He does make a point of saying, “Although it’s improbable you’d ever ride a profit wave just like this, it’s NOT impossible…” but that doesn’t really mean anything. It’s also “not impossible” that you’ll win the billion-dollar Powerball lottery, but it’s awfully close to impossible. And with that, he’s already planted the idea of ridiculous riches in your head… so, as the ad copywriter wants, you’re drooling a little bit and primed to get out your credit card.
The real driver of all of this chatter about marijuana is the notion that marijuana production, retailing and consumption will create a much larger marijuana industry, and that the growth of this industry will allow some companies to flourish. Since legalization started out small and risky, the companies are pretty much all tiny — and a great many of them are private… but there are also hundreds of publicly traded stocks that have some connection to marijuana… almost all of them are penny stocks that trade over the counter, including those that change their corporate focus anything there’s a new hot stock market sector… though there are a few larger ones, mostly biotech companies that have been around for a while and are trying to develop drugs that are derived from or somehow related to cannabis (which, as I’ll reiterate, means legalization doesn’t mean much for them — they’re generally using marijuana as a raw material source for drugs that are in clinical trials, not trying to sell marijuana itself).
And yes, the legal marijuana business is becoming larger — five states had recreational marijuana votes on the ballot, and it won everywhere but in Arizona, so Massachusetts, California, Nevada and Maine now are legalizing recreational possession and use to at least some degree, and probably adding to the tipping point that forces a real change in federal law and more easing from other states in the future… if only because California tends to lead the nation and swing a big stick thanks to their gigantic population (medical marijuana was first legalized in California, 20 years ago now).
Those wins for recreational marijuana were not a surprise, nor were the wins for medical marijuana in Florida, North Dakota, Montana and Arkansas (now more than half of the states have medical marijuana laws, speaking of tipping points), and President Trump has not been particularly anti-marijuana, so there’s no indication just yet that the federal government will be much more aggressive (mariju