Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
CBD Product Investment Opportunities ?
Old 01-16-2020, 05:31 PM   #1
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,056
CBD Product Investment Opportunities ?

I was recently reading an article in a health magazine where CBD sales forecasts (Brightfield Group) are expected to exceed $23 billion by 2022. Currently CBD product sales are at $5 billion for 2019, forecasted to be $10 billion in 2020 and going up from there. Just wonder if anyone of this sage group has looked into investing opportunities in the way of a CBD type fund, ETF, index fund or even promising individual stocks ? Thanks in advance for any and all replies.

Full disclosure, I have used some CBD products with varying degrees of success but am by no means sold on it as a panacea some are making it or are marketing it to be.
__________________

__________________
The only thing constant in life is change.
frayne is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-16-2020, 06:12 PM   #2
Thinks s/he gets paid by the post
MuirWannabe's Avatar
 
Join Date: Oct 2009
Posts: 1,093
Great question. I look forward to others responses.

It does seem like CBD helps everything, if you listen to the hype. Anxiety, addiction, depression, joint pain, etc. I would love to believe it can help with addictions and some mental illnesses like anxiety. What Iím waiting on is more definitive testing results. And Iím wondering why such testing has been lagging. Makes me suspicious. But at the same time I am hopeful.

Seems like an amazing investment opportunity if real.
__________________

__________________
ďOf all the paths you take in life, make sure a few of them are dirt.Ē John Muir
MuirWannabe is online now   Reply With Quote
Old 01-16-2020, 06:47 PM   #3
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 4,068
Without knowing the price, there is no way to know whether there is investment opportunity or not. Typically, "fad" type companies get bid up to far beyond their economic value leaving only the "greater fool" theory to rationalize purchase. There are "fad" stock success stories of course, but far more that ended badly.

Without doing the research, I'd bet that the total revenue projections of all the CBD companies would compare favorably with the GDP of California.
OldShooter is offline   Reply With Quote
Old 01-16-2020, 08:17 PM   #4
Full time employment: Posting here.
 
Join Date: Oct 2017
Location: Chapel Hill, NC
Posts: 783
I, DH and my mother have been using a CBD creme for arthritis with very good success. Maybe a good investment, but you need to be sure the company is one that has products that actually has a lot of CBD. No regulations.
harllee is online now   Reply With Quote
Old 01-17-2020, 09:49 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
I prefer some THC-A with my CBD...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 01-17-2020, 09:52 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
 
Join Date: Apr 2013
Posts: 8,583
Quote:
Originally Posted by HFWR View Post
I prefer some THC-A with my CBD...
+420
MRG is offline   Reply With Quote
Old 01-17-2020, 09:59 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 3,391
My business touches on this world. My personal experience is that the industry is getting very, very crowded, regulations change often, players come and go. Lots of money will be made and even more will be lost. If it were me, right now, I would stand to the side for awhile and see who emerges.
COcheesehead is offline   Reply With Quote
Old 01-17-2020, 07:17 PM   #8
Full time employment: Posting here.
cbo111's Avatar
 
Join Date: May 2014
Posts: 506
Quote:
Originally Posted by HFWR View Post
I prefer some THC-A with my CBD...
+1
cbo111 is offline   Reply With Quote
Old 01-17-2020, 07:43 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 3,992
Everybody and their uncle is selling CBD. And without standards and regulations, not all CBD oils are created equal.

It does a great job for my wife's ailments and she's easier to live with. But she's gone through 6 or more processors of the stuff to find one that works great--and tastes great.

If the profits get too big, it's just a matter of time until state governments stick their nose into CBD and tax it. They're already watching growers extremely close to make sure their products are organic and free of pesticides and watching for illegal marijuana to be mixed in with the hemp. And at one point, look for Big Pharma to get into processing, etc.

Right now, the states approve growers, and not every farmer is having successful and profitable crops. It seems tobacco farmers' land and resources works best growing the stuff. There's one grower in East Tennessee with 1,000 acres planted, and that's more than the rest of the state combined. The trick is having someone to sell the crop to that's going to do a good job processing it into many, many different products.
Bamaman is offline   Reply With Quote
Old 01-17-2020, 07:46 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
 
Join Date: Apr 2013
Posts: 8,583
Quote:
Originally Posted by COcheesehead View Post
My business touches on this world. My personal experience is that the industry is getting very, very crowded, regulations change often, players come and go. Lots of money will be made and even more will be lost. If it were me, right now, I would stand to the side for awhile and see who emerges.
+1
I have no business interests but consume CBD+THCA. I went to the medical dispensary today next to the recreational dispensary, both sell CBD products with or without THC. On the ends of this small plaza were two other establishments selling CBD only products. Lots of different providers of the same thing.

There's going to be more regulations and consequences of bad decisions. The recent vape crisis is an example of what could go horribly wrong.
MRG is offline   Reply With Quote
Old 01-17-2020, 10:34 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
With zero actual experience, but I have a funny feeling that CBD is this yearís essential oils...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 01-18-2020, 05:57 AM   #12
Full time employment: Posting here.
 
Join Date: Oct 2017
Location: Chapel Hill, NC
Posts: 783
Quote:
Originally Posted by HFWR View Post
With zero actual experience, but I have a funny feeling that CBD is this yearís essential oils...
Don't knock it till you have tried it. For those of us with arthritis it is a blessing. Ask my 90 year old mother. Before CBD creme she had wrist arthritis so bad she had to wear a splint--now with CBD creme no pain and no splint. Could be all in her mind but I doubt it --whatever it is working for mother and me and DH and my neighbor, my good friend, etc etc.
harllee is online now   Reply With Quote
Old 01-18-2020, 06:55 AM   #13
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 4,281
I'd probably steer well clear, unless a small gamble, because so much is unknown, unproven, and unregulated.

I know many swear by it, and I'm sure there's some benefit. But if the FDA gets involved (and they'll have to at some point), it could very much impact these "companies."
Aerides is offline   Reply With Quote
Old 01-18-2020, 09:53 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
 
Join Date: Apr 2013
Posts: 8,583
Quote:
Originally Posted by harllee View Post
Don't knock it till you have tried it. For those of us with arthritis it is a blessing. Ask my 90 year old mother. Before CBD creme she had wrist arthritis so bad she had to wear a splint--now with CBD creme no pain and no splint. Could be all in her mind but I doubt it --whatever it is working for mother and me and DH and my neighbor, my good friend, etc etc.
It helps my dog's arthritis too. I don't think he's expecting CBDs to help him.

I'm not sure why anyone would be sceptical of CBD or THC for pain issues. Look at most pre- cannibis prohibition cough syrup, pain meds, or tonics. and most contained amounts cannabis indica.
MRG is offline   Reply With Quote
Old 01-18-2020, 10:14 AM   #15
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 4,068
Quote:
Originally Posted by harllee View Post
I, DH and my mother have been using a CBD creme for arthritis with very good success. Maybe a good investment, but you need to be sure the company is one that has products that actually has a lot of CBD. No regulations.
With respect, I think many folks here are mixing up two very different things.

Suppose you went to the grocery store one day and found a display of the most wonderful pears you had ever seen. Hand polished, wrapped in gold tissue paper, and individually boxed. $100 each. Would you buy? Probably not.

The point is, of course, that no matter how wonderful these businesses may be, their potential as investments is a totally different question. In addition to price, there are all the business risks that others here have pointed out. Low barriers to entry (hemp is a weed, after all), overcrowded market, uncertain regulatory environment, etc. Historically this kind of situation is a playground for hucksters, further increasing investment risk.

Personally, my guess is that if CBD does turn out to be A Good Thing, existing cosmetics companies will move in with their massive financial resources, low cost manufacturing, and huge distribution networks, leaving almost all of the early movers in the dust. Possibly one or two of them will be lucky enough to establish brand names that enable them to survive in the marketplace, but when the big guys arrive they will control the pricing and can survive on margins that will tank the little guys. So without even looking at stock prices or the effectiveness of the products, I don't this kerfluffle as likely to be any kind of investment opportunity. YMMV of course.
OldShooter is offline   Reply With Quote
Old 01-18-2020, 10:31 AM   #16
Dryer sheet aficionado
ATX78701's Avatar
 
Join Date: Mar 2019
Location: South Texas
Posts: 38
Quote:
Originally Posted by MRG View Post
+420
I see what you need there. Well played!
ATX78701 is offline   Reply With Quote
Old 01-18-2020, 10:32 AM   #17
Dryer sheet aficionado
 
Join Date: Apr 2019
Posts: 25
I own a couple of Canadian cannabis stocks (Canopy and Aurora) and one CBD (Charlotte's Web). Very small positions. Expect a ton of volatility (15% moves up or down on no public news isn't uncommon) and the potential of loss. My CWBHF position, for instance, is down 50%. And it's the only one of the three that actually has earnings!

CBD's only proven (FDA approved) medical benefit is in the treatment of symptoms of two forms of epilepsy. All other benefits are anecdotal, and the FDA has fined several CBD companies for making false health claims.

CWBHF is by far the market leader in CBD, and obviously I think there's some long-term potential there or I wouldn't have purchased the stock. But there's a ton of unknowns and a ton of risk, and not a lot of insight into these companies or the industry as a whole. I haven't bought in more at this price, but I might. They report earnings on March 27; expect a large jump or drop in the price of the stock immediately after that report, depending on the earnings numbers.
Ducati52 is online now   Reply With Quote
Old 01-19-2020, 12:05 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
Quote:
Originally Posted by MRG View Post
It helps my dog's arthritis too. I don't think he's expecting CBDs to help him.

I'm not sure why anyone would be sceptical of CBD or THC for pain issues. Look at most pre- cannibis prohibition cough syrup, pain meds, or tonics. and most contained amounts cannabis indica.

Not at all skeptical about activated thc, and certainly many testify to the efficacy of CBD, but so far I see a fair amount of cheerleading to the effect that ďitíll cure your asthma tooĒ, to quote Frank Zappa. You donít really know what, if anything, is actually in it, or at what concentration or purity.

So still a skeptic, but youíll note Iím not calling for prohibition. More caveat emptor...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 01-19-2020, 12:10 PM   #19
Thinks s/he gets paid by the post
Lakewood90712's Avatar
 
Join Date: Jul 2005
Posts: 2,063
Investment articles on new product fad's ? The world is fluded with cheap money to fund new businesses. The little guy ( us ) usually don't make out in these situations.
Lakewood90712 is offline   Reply With Quote
Old 01-19-2020, 12:31 PM   #20
Full time employment: Posting here.
 
Join Date: Jul 2013
Posts: 791
There have been many folks looking to get into the growing business. And there has been a fair amount of 'investment money' looking to sign up growers. Now that the year's harvest is complete, many of the growers that were wooed by the fast talkers find that the market for their product is fickle. Lots of excuses, lots of delays in getting paid for sales.

The concept that hemp was going to be the next miracle crop to allow farmers to get away from the evils of growing corn and soybeans seems to be following a similar path to many of the other miracle cures for the evil agriculture system. I suspect that there will be a few folks that make out ok, and some of these folks will be pressing their own oil and selling their own product. But if the product has lasting value, the larger processors will take over and economies of scale will skim the big part of the money away from the boutique operators.

I find the claims for CBD to be interesting, and would be interested in growing a small amount just for learning. But, this is similar to growing tomatoes: I am not going to make a viable business out of it! I would be very careful about investing money anywhere in the hemp business. Lots of shiny shoes salesmen making extraordinary claims, and folks with a near religious love for the product.
__________________

__________________
In alcohol's defense- I've made some pretty bad decisions while completely sober.
Clone is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
CBD oil happy2bretired Health and Early Retirement 74 06-15-2019 10:41 PM
Thanks for the CBD tip SumDay Health and Early Retirement 24 03-10-2019 08:25 AM
Does this type of bond-based fixed maturity investment product exist? samclem FIRE and Money 4 05-14-2009 08:52 PM
Is all the Indexing money making opportunities for stock picking? Olav23 FIRE and Money 2 01-08-2007 12:40 PM
Self Storage Business Opportunities DFW_M5 FIRE and Money 5 09-11-2005 09:13 AM

» Quick Links

 
All times are GMT -6. The time now is 03:47 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×