Is it a good time to buy pot stocks ?

[frayne]

Stocks that is ? I see where AG Sessions repealed some ruling concerning the use, distribution and sale of mary jane and the pot stocks took a real beating yesterday.

Thinking about throwing 10K in just for sheets and giggles today. What say you, go one toke over the line or stand pot ?

[H2ODude]

Think I saw where D and R senators were both expressing dislike of his action, probably worth a try. Can't see America backing away from legalization at this point. Just may have to wait a bit for recovery.

[oneill225]

Yes. I have a little invested and prices are already recovering from yesterday's over reaction sell-off. Be ready to hold for a while, though.

[LRDave]

.....'ere........

[MRG]

Quote:

Originally Posted by H2ODude Think I saw where D and R senators were both expressing dislike of his action, probably worth a try. Can't see America backing away from legalization at this point. Just may have to wait a bit for recovery.

Given the rest of North America is legal in 2018 it's an interesting move. I don't have a great feel for the players, too much speculation for my tastes.

[BrianB]

In precious metals I prefer "physical" gold to "paper" gold (shares), so my recommendation in this matter would be.....

[frayne]

Quote:

Originally Posted by BrianB In precious metals I prefer "physical" gold to "paper" gold (shares), so my recommendation in this matter would be.....

+1

[kgtest]

Lol, has the price per oz changed on the paper gold as of late? My crystal ball says no, holding steady same price for past 2 decades. Regulation and speculation has. And of course getting a piece of the pie is a lot less risky if you aren't actually on the ground

[check6]

I have been day trading CANN. Did pretty good yesterday with several round trips. Bought more today at the open.

[GalaxyBoy]

I'm sure you're buying 420 shares.

[CaliforniaMan]

Quote:

Originally Posted by BrianB In precious metals I prefer "physical" gold to "paper" gold (shares), so my recommendation in this matter would be.....

+1

[walkinwood]

Just off the top of my head... (and I only own very diversified funds)

Yes. As long as you can buy a bit into every company that goes public since you have no way to know who will succeed. But legalization seems to be a given - its the "when" that is unknown, which should lead to a revenue growth in this industry. But what about regulation? Will profits margins rise? They're pretty slim these days if you believe the pot industry in Colorado. What happened to tobacco profits when regulations started ramping up? I have no idea how liquor stocks are doing, but there is huge consolidation in that industry. How will that play out on the grass fields?

Oh, this is fun.. I could go on for a while.. but I wouldn't take any of it seriously. Now, where did I put that spliff.. are you watching me? hey look! a cookie!

[cbo111]

For me, the problem with investing in pot is more related to market saturation. The number of people smoking or ingesting weed has not skyrocketed when a particular state made it legal. Also, and more importantly, it is very cheap and easy to grow in your backyard (don't ask me how I know). And finally, as legal prices climb, the tax-free black market will continue to flourish. These factors will put a damper on any real industry growth.

[jazz4cash]

..........all the coverage I've seen includes a pun or joke.

I was thinking of starting one to discuss ideas to invest in legalized cannabis, but hopefully this will serve the purpose. I'm at the early stages of studying the opportunity and plan to initiate a position in a handful of stocks but I just heard there is an etf. Another idea I stumbled on is to invest in peripheral industries (e.g. Scotts Miracle Gro). An author on Seeking Alpha claimed that many speculative startups are chartered in NV, but the better capitalized companies are chartered in DE which has stronger shareholder protection so that maybe a screen for me to use.

[CaliforniaMan]

Quote:

Originally Posted by cbo111 For me, the problem with investing in pot is more related to market saturation. The number of people smoking or ingesting weed has not skyrocketed when a particular state made it legal. Also, and more importantly, it is very cheap and easy to grow in your backyard (don't ask me how I know). And finally, as legal prices climb, the tax-free black market will continue to flourish. These factors will put a damper on any real industry growth.

+1
I think you nailed it.

[oneill225]

Quote:

Originally Posted by cbo111 For me, the problem with investing in pot is more related to market saturation. The number of people smoking or ingesting weed has not skyrocketed when a particular state made it legal. Also, and more importantly, it is very cheap and easy to grow in your backyard (don't ask me how I know). And finally, as legal prices climb, the tax-free black market will continue to flourish. These factors will put a damper on any real industry growth.

The established marijuana selling states are raking in hundreds of millions of dollars in all cash tax revenue. Imagine the numbers when credit cards can be used. The shift away from the "black market" has happened already in these states and there is no reason to think it won't happen in every state that legalizes.

[MRG]

Quote:

Originally Posted by oneill225 The established marijuana selling states are raking in hundreds of millions of dollars in all cash tax revenue. Imagine the numbers when credit cards can be used. The shift away from the "black market" has happened already in these states and there is no reason to think it won't happen in every state that legalizes.

I don't think credit matters. I've never been to a dispensary that doesn't have an ATM or two+ in the lobby. Many recreational facilities do allow credit, until the bank finds out their business and closes their accounts. Then rinse lather repeat with a different bank.

I just don't know how to invest in the stuff. Yeah there are many start-ups and much valid interest by pharmaceutical companies. If I was going to put money in it I would look at foreign, to the US, drug companies. Maybe Canada, Uruguay, or Mexico, anyplace where access to the plant is not going to be problematic for researchers

Before you invest, look at Rick Simpson. Maybe he's a quack, maybe he knows something. He's an advocate who is giving his knowledge away for free.

[Texas Proud]

Quote:

Originally Posted by BrianB In precious metals I prefer "physical" gold to "paper" gold (shares), so my recommendation in this matter would be.....

Problem is that gold will not go up in smoke....

[GrayHare]

SMG is interesting. Forbes had a good article last year.

[Texas Proud]

One the investment side.... I do not want to invest in something that is all cash and you have no idea if the financials are correct or not...

There was a show with the Profit going out to Cali and talking to people growing the stuff... seems like everybody is jumping in and the prices are going to go down quickly...

He also pointed out that demand will probably not be going up... IOW, if you partake you still will, but if you were not into it making it legal will not change your mind...

So it sounds like a lot of money going after a relatively small market...

It was interesting this Christmas as my BIL was working for a company that is building grow houses that can be moved... high tech stuff where yield is much higher than out in a field and also better... he has been working for a promise instead of money, but we think he will not be getting anything...