Cannabis stocks

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tsptalk said:
This thread is about cannabis stocks. I'll move the moral discussion about pot to the health forum (http://www.tsptalk.com/mb/health/) although I see some of you are dying to make it political. ;)
Click to expand...
Investing in a substance that has health effects and is prohibited for such raises a significant long term, investment risk. This is not a moral question...investing in prostitution or gambling might be.




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amoeba said:
Investing in a substance that has health effects and is prohibited for such raises a significant long term, investment risk. This is not a moral question...investing in prostitution or gambling might be.




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Click to expand...
I will agree that there can be health risks associated with long term consumption of cannabis. It depends on the level of use.
Alocohol, tobacco, prescription drugs all come with risks from long term use. It’s up to the consumer to determine whether they consume them, and whether they do so responsibly, and in moderation. Alcohol, tobacco, fast food, and snack foods have proven long term health effects, but people trade stock in those companies every day. Nothing new about investing in products that could carry inherent health risks.
And, at this point, I agree about long term investment risks related to cannabis stocks. Too many variables at this point. So, I’ll dip my toes in short term and watch. That’s what I love about investing. Choices.
I’ve always been a strong proponent of strict regulation and taxation of legal cannabis. Similar to alcohol laws. Over 21 to purchase or legally consume it, similar DUI laws, possession limits, similar penalties for breaking the laws.
We’re fighting a losing battle the way it stands right now. There’s absolutely no regulatiing or slowing the flow of illegal cannabis.
We can adapt and try something different, and hopefully more effective, or keep practicing the definition of insanity.
 
Again, to explain the investment risk, what we have here is a product which is explicitly illegal, today....it's marketing depends on the annual revote of that omnibus amendment, Rohrenbacker-Farr, that pulled Federal expenditures on DEA enforcement from states that regulate cannabis. That same amendment states that it does not alter the Federal status...which is illegal. That is very sketchy grounds for long term investment. The term "legal", or "legalized ", applies to media adjectives regarding state initiatives by popular vote. If you compare any other product with drug properties, investors react to scientific data and findings. Not so with cannabis. So, its overwhelmingly emotionally rather than data driven. Another investment risk. That said, I did look into the rapidly increasing popularity of Swisher sweets, a cheap cigar that is commonly used as premade blunt source - empty out the tobacco and load it up with bud. Unfortunately, the company went private and moved its 450 jobs from Florida to the Dominican Republic a few years ago. I also see tokers lining up cinnamon shnapps, that "fireball" stuff, so maybe that will pick up too. As far as hookers, James, your best bet as a surrogate would be casino stocks, especially those with Asian operations.

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Like any other investment, enter into it fully informed, and be ready move in or out with the tides. I don't consider cannabis stocks as a long term investment at this point. To many ? in the coming years. But, nothing wrong with getting a little taste in the early stages of the current expansion of availability. I was talking to a friend of mine yesterday that was telling me about one our older mutual family friends who owns multiple liquor stores around town. He just sold his most profitable store because of it's prime location. The word is it will be the location of first medical marijuana dispenser in town. I never thought I'd see this in my lifetime considering the extremely conservative views of our civic leaders.
All things will come to pass I suppose.
 
Our County supervisors, in their wisdom, voted to disallow any medical cannabis sales or any commercial grows. The City, which is the capital of California by mere coincidence, allows both. Our State allows local jurisdictions to decide for themselves, as provided in the initiative. I'm not sure there's a pent up demand...since cannabis is in use already. Another investment risk (demand growth questionable). There does seem to be a potential for testing technologies, DUIs, and so forth...and perhaps some sort of non-cash venue, since proceeds are not accepted as bank deposits currently (fear of Federal seizure). Possibly a form of cryptotransaction, in lieu of cash or offshore might work. Perhaps some company can work up mechanism or software to bank the money from all this.
Or, it could be Federally legalized, although that would ltake a Constitutional amendment, or at least an Act of Congress, not likely at the moment. Since current cannabis is much more potent, there's a potential for overuse, so medicines that counter or relieve that condition could profit.



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Just doubled my position in LBUY at the open on the news that they are expanding into CA. Stock is up another 12% today
 
There's not much in terms of excitement on the ground in CA so far; few if any new users - - - primarily people who bought illegally now buy it over the counter, and really - - - not that many. If it's not creating new demand now, a significant fade in interest could occur.

Initially, it appears to be a dud factor forming...as far as investment is concerned...much more hype than follow through.

Separately, I did ask at some major health care HMOs whether any had previously, or intend advise use of cannabis- - - and the answer is absolutely not.

This isn't looking too good as a long term investment right now...more fizzle than sizzle. Probably most of these startups will crash and burn over the next 3 months...a few will survive.
 
Canada has already voted to legalize recreational use nationwide this year. Canadian stocks are on a roll. This is an entirely new industry in its infancy. I'm all in, but I'm in on cryptocurrency too. Never more than I can afford to lose, but I'm up over 200% since September. Better than the TSP at the moment.
 
I look at this as the first new industry in a long time. I watched an episode of "The Profit" in which he visited cannabis growers, sellers, edible manufacturers, etc., with the opinion that he would never invest in them. He was shocked at what he saw. I'm pretty sure he ended up investing afterward. It is a business with huge potential. Legalization does not mean dealers on corners selling dime bags. Check out TerraTech in this profile. https://investorshub.advfn.com/Terra-Tech-Corp-TRTC-23761/ It looks like a high dollar jewelry store. The industry is highly regulated. It's the first day in California and there aren't stores everywhere (yet). Give it time, but get in now.
 
maryanddan said:
I look at this as the first new industry in a long time. I watched an episode of "The Profit" in which he visited cannabis growers, sellers, edible manufacturers, etc., with the opinion that he would never invest in them. He was shocked at what he saw. I'm pretty sure he ended up investing afterward. It is a business with huge potential. Legalization does not mean dealers on corners selling dime bags. Check out TerraTech in this profile. https://investorshub.advfn.com/Terra-Tech-Corp-TRTC-23761/ It looks like a high dollar jewelry store. The industry is highly regulated. It's the first day in California and there aren't stores everywhere (yet). Give it time, but get in now.
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Again, I live in California, it isn't the first day or even the first year of cannabis sale here, as it has been saturated with medical cannabis dispensaries for some years; and that number has been decreasing slowly (partially supply/demand; partially local prohibitions)...all this does is replace the medical (and illegal) with the recreational form of sale. There isn't necessarily any growth in the industry. Restaurants don't serve it and fear liability. Doctors in health plans don't prescribe or advise it. It is an at will State, and employers can and have random tested and fired employees for use. I expect mobile sales at music venues to do very well...if there is a business that can specialize in that...maybe put it on a taco? There is a potential for consolidation of small growers in lieu of larger commercial operation; if you can pick a winner on that.
 
amoeba said:
There is a potential for consolidation of small growers in lieu of larger commercial operation; if you can pick a winner on that.
Click to expand...

As I said- I’m going to have to study this very, very carefully and deliberately- maybe for a long long time. :-)



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There’s no way cannabis can’t be considered a budding growth industry.
I’m going to roll up on some stock this week. Have to start somewhere.
 
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