How To Invest In Legalized Marijuana

[SFC]

Yea, I have had some killer hits and some crash and burn misses. Fact is when you trade you are playing against a stacked deck. The high frequency traders and big brokerage houses can pull the rug out from under us little guys whenever they feel like it. I would never recommend anyone trade with money they cannot afford to lose.

 

That being said you don't officially lose until you sell or company goes belly up. So sometimes when you make a misstep you can just sulk for a year or two until it comes back around. Valero was one I had during the crash of 08, it took them better than 4 years to start flying again.

[+washtenaut]

I have started tracking these 10 cannabis stocks. I have a small investment in a few of them, hoping a couple will gain traction and take off. MJNA has certainly done so.

 

CBIS, ERBB, GRNH, GWPRF, HEMP, MJNA, MWIP, PHOT, RFMK, XCHC

 

It looks like the whole group has been on the rise lately, though there are lots of ups and downs to be sure.

 

GWPRF seems to be the lone laggard even though they have the most professional pharmaceutical story. I think that investors are figuring that if legalization comes to the USA, there will be little need for FDA approval of cannabis as medicine - as GW is pursuing. BTW, gwpharm.com is an excellent website for cannabis research information. See the R&D tab once at the website.

 

EDIT: Guess I should include MDBX and TRTC too

[SFC]

Thanks Washtenaut, I need to dig in and have a look.

[+washtenaut]

This MJNA story might scare ya.....

 

Chronically Criminal: Shielding The Public From Medical Marijuana - Seeking Alpha

[+washtenaut]

The whole sector is crashing hard today. If these cannabis stocks were the traditional pump and dump stocks, now would be the time to grab whatever money you could and run. If however, you think there is a real market there, this might be a good time to look through the bargain bin for some deals.

[michaelscott]

Yikes, thanks for the link. I have talked to these folks though email about some of the products they offer and they do seem a little off. I love the dentist as a medical officer.

[+washtenaut]

This MJNA story might scare ya.....

 

Chronically Criminal: Shielding The Public From Medical Marijuana - Seeking Alpha

 

Big Oops for Seeking Alpha.

 

Apparently the woman they cited in this article with the long criminal record was NOT the officer in MJNA. A completely different person. Different middle name. MJNA officer has no criminal past.

[+washtenaut]

MJNA has put out a 2/18 press release with promised financials and projections. They might figure these numbers rebut the SA article.

 

Medical Marijuana, Inc. Releases 2012 Annual Share Holders Report and First Ever Corporate Revenue Forecasts - Yahoo! Finance

[+washtenaut]

Not that convincing of an argument that Big Tobacco and Big Pharma won't get into cannabis.  The states' wish to gather tax revenue will push cannabis production to larger organizations over time, including big tobacco and big pharma.

 

Th cannabis sector seems to be heating up a bit lately.  All sorts of mainstream investing publications are discussing the possibilities.  Money will move the ball ahead faster than all of the moral reasons combined, in my opinion. 

 

http://wallstcheatsheet.com/stocks/big-pharma-and-big-tobacco-wont-control-the-marijuana-industry.html/?a=viewall

[greenbuddha]

Not that convincing of an argument that Big Tobacco and Big Pharma won't get into cannabis.  The states' wish to gather tax revenue will push cannabis production to larger organizations over time, including big tobacco and big pharma.

 

Th cannabis sector seems to be heating up a bit lately.  All sorts of mainstream investing publications are discussing the possibilities.  Money will move the ball ahead faster than all of the moral reasons combined, in my opinion. 

 

http://wallstcheatsheet.com/stocks/big-pharma-and-big-tobacco-wont-control-the-marijuana-industry.html/?a=viewall

 

Money always moves things faster, so here's my prediction, and yes I'll say 'I told ya so' when it happens.

 

Cannabis legalization here in Michigan will get stonewalled by the politicians and the anti-legalization crowd right up to the very last minute before MJ is legalized.

 

And when it happens it will be so fast it will make our heads spin wondering what the heal just took place.

 

And it won't make any difference WHY we might have been for it or opposed it, be it personal lose of current income or for social / moral reasons, or just the fact that we've hidden our heads in the sand, the majority of us will be dazed and amazed at having missed it. 

 

Yes, it will take place because of the economics of it all... money talks... LOUDLY!

 

SO loudly that eventually... and suddenly... even the pols will hear it... on BOTH sides.

[+washtenaut]

The cannabis stocks had been selling off late in the calendar year.  Folks absorbing some losses for tax purposes I think has caused many cannabis stocks to fall.  Since the peak last February, many had spiraled down quite far.

 

GW Pharmaceuticals seems to have taken the lead in the sector.  All along it has been aiming at FDA approval for its products.  For a time, when all out legalization seemed possible, this stock lagged as folks wondered why bother with the FDA approval when cannabis will be available at the 7-11.  Recently it seems the FDA route has gained popularity among investors.  GW has moved from around $9 this summer to over $40 today

 

Today many of the other cannabis stocks took off too.  I think the news buzz about Jan 1st and Colorado Pot Bonanza have gotten some folks off the investing sidelines.  Here's hoping it lasts. 

[+washtenaut]

Looks to be another good day, er, at least a good start for cannabis stocks today

 

Quarter end today.  Fund managers like to acquire some shares of a newly hot stock.  This way, they can report that their fund held this hot stock in the past quarter.  That makes them look smart, hopefully encouraging new money to enter their fund. 

 

At least I think that is how that works...lol  Keep an eye on the volume for a given stock.  If it is unusually high, it could be new professional money coming in. 

[+washtenaut]

Hello!

 

McFly!

[+washtenaut]

So I talk to myself.  So what?   lol   Hopefully someone is reading these posts.

 

GWPH is the strongest pharmaceutical player by far.  They are very near FDA approval on a couple of medicines that will make big news.  They have climbed from around 9 to around 39 though.  On big news they could easily get to the mid 50's.  They just announced a secondary offering though at 39.70 and with the Colorado story, it may pause until that big news.

The others that look promising to me of late have been PHOT and TRTC.  MWIPD is coming back steadily from steep drop.  GRNH has also been growing steadily.  MJNA has gotten life of late too

Actually all of the sector has been growing rapidly of late including some stocks that look kind of weak.  RFMK, ERBB, CBIS, MDBX, HEMP, and ENDO have been rising but look less strong...or at least did until this recent run up.

Do your own research.  This whole sector could dive or skyrocket with news from the Feds.  Also, these seem to be very volatile.  If you make some good gains, secure at least some of them with a partial sale as these will go down.  Some for ever and some just to consolidate and regroup for another run

[t-pain]

wash, i've been watching. i really like your posts that collected all the med marijuana stocks together.

 

maybe i should pull the trigger on gwpharma...

[+washtenaut]

CNN has a story...if you don't believe me ...lol

 

http://money.cnn.com/2014/01/07/investing/marijuana-stocks/index.html?hpt=hp_t3

[t-pain]

hey i believe you, and i believe in marijuana as medicine.

and i believe all of the research studies on marijuana as medicine.

thats why i know it will pass all fda trials.

 

investing is just so nerve wracking for me. i really dislike the stock market.

[+washtenaut]

Another crazy huge day.  More investors than investments again today.  A couple lost ground but most were up by 20% or more today.

 

http://www.thestreet.com/story/12219310/1/the-deal-pot-stocks-are-smokin.html?puc=yahoo&cm_ven=YAHOO

[+washtenaut]

What's that saying, 'It's deja vu all over again'?

 

Just as happened in February of 2013, 'Seeking Alpha' has published an article questioning the sanity of investing in these cannabis companies.  This story lead to a major sell off.

 

Most cannabis stocks lost significant portions of their recent gains.  Tomorrow will be interesting to see if the slide continues or if investors shake off the article and plow ahead.

 

Interestingly, GW Pharmaceuticals sold out their secondary offering almost immediately this morning.  They announced that the sale price would be $36.  Instead of the share price falling to around $36 per share, volume absolutely soared and the price rose to $47, a 23% gain today.  GW seems to move counter to the other cannabis stocks.

[t-pain]

found this stock today. doesnt look like much except a possible future patent holder

 

http://www.cannabisbiotech.com/investors.html

 

bout $.79 a share. http://www.nasdaq.com/symbol/puge/stock-chart

[trichcycler]

when I was younger I entertained ideas of making it big in the private prison industry as a stock holder. I gave up on the idea the moment I started to think of exactly what I would be supporting, instead of how much money I could make. Good sleep is of great value to me today. Glad I made the right decision.

[+washtenaut]

It doesn't take too much to get your drift there GM.  It seems that you feel that investing in companies capitalizing on the cannabis green rush is distasteful.

 

Could you elaborate a bit on why folks should feel guilty investing in companies like GWPH, PHOT, MJNA, FITX, etc?  Are these evil entities?  Certainly many are promoting their own business model and not promoting free grow rights for all citizens.  I agree that it would be better for patients if our grow rights weren't threatened by the coming business wave but the wave is coming, like it or not.

 

I think it is naive to ignore this opportunity but we are all entitled to our opinion.  My view is that many of us are not experts in many fields and so we dont have an advantage in investing in most sectors.  However, most of us know more about cannabis use and trends than 98% of the investing population and that right there is an investing advantage.  As I mentioned in the first post in the thread, I think this is the next big opportunity in stocks.  Of course I am not yet rich either so what do i know?   lol

[+washtenaut]

There are rumors that FITX and PHOT may be entering into some sort of joint venture or possibly even a merger.  Fitx was soaring early this past week but cooled considerably by Friday. 

 

MJNA and PHOT have been rising.  ERBB also seems to have risen from the ashes.  They are all hyper news sensitive and so are extremely volatile.

 

There was an investor conference in Vegas on Thursday and Friday and there was also a news story that Attorney General Eric Holder was going to allow banks to work with state-legal cannabis companies going forward.

 

Also some excitement around the Pres possibly addressing cannabis laws in the State of the Union speech next week.  Not holding my breath on that one however.

 

Here are some tickers for you if you want to look around.  (Not a complete list)

 

AFAI  CBIS  EDXC  ENDO  ERBB  EXMT  FITX  GRNH  GWPH  HEMP  MCIG  MDBX  MJNA  MWIP  NVLX  PHOT  PUGE  RFMK  SKTO  TRTC  VAPE

[Restorium2]

Really, a joint venture?

[trichcycler]

Just wanted to present my experience, lesson, and result. heck, I already checked out tradeking(thanks there) and thinking of opening an account !. I didn't say all of the investments out there are for "evil" things, but rather we should check our conscience and be true to ourselves before we vote with our investment dollars, and possibly support an entity that's hurting humans or their conditions. I can think of not much more cool things to be invested in like the marijuana industry. Its poised to be winner. A fairly new market, with the pres keeping it alive, you kidding, a sure think in my book. Maybe not someone like prairie farms though, right?

It doesn't take too much to get your drift there GM.  It seems that you feel that investing in companies capitalizing on the cannabis green rush is distasteful.

 

Could you elaborate a bit on why folks should feel guilty investing in companies like GWPH, PHOT, MJNA, FITX, etc?  Are these evil entities?  Certainly many are promoting their own business model and not promoting free grow rights for all citizens.  I agree that it would be better for patients if our grow rights weren't threatened by the coming business wave but the wave is coming, like it or not.

 

I think it is naive to ignore this opportunity but we are all entitled to our opinion.  My view is that many of us are not experts in many fields and so we dont have an advantage in investing in most sectors.  However, most of us know more about cannabis use and trends than 98% of the investing population and that right there is an investing advantage.  As I mentioned in the first post in the thread, I think this is the next big opportunity in stocks.  Of course I am not yet rich either so what do i know?   lol