How To Invest In Legalized Marijuana

[+washtenaut]

Like you, I took the shotgun approach here and bought a little stock in many companies hoping to get 20-25% success rate.  Better to pick only the winners if you knew who they were but my aim is not so good.

 

Most of the time when I have sold one of these, it has been a partial sale.  I have done that because even the worst cannabis company was still soaring upwards.  I too finally sold out of HEMP as it just got to a silly high evaluation.

 

I think GWPH is solid and I am also hoping too that PHOT, TRTC, FITX, and MJNA can come through.  Piper Jaffrey on Friday upped the GWPH price target into the 90's.  (currently trades at $62). 

 

Also on Friday, PHOT shareholders voted overwhelmingly (88% - 12%)  to approve a very large increase in the AS (company stock shares) to allow management to wheel and deal.  With that large of a dilution plan many stocks would plummet.  PHOT held up very well on Friday afternoon and shareholders are looking forward to some big news announcement perhaps as early as Monday or Tuesday to propel PHOT upward.  PHOT has a joint venture in the works with FITX and EDXC but only if FITX gets their Canadian grow permit.

 

TRTC has an urban gardening model that they are hoping to turn to cannabis/hemp where and when legal.  They seem like they have good potential to me as mainstream investors will be more willing to buy into the 'picks and shovels' business (like PHOT)  rather than investing in still federally illegal cannabis itself.  Jim Cramer has also taken some notice of this one, along with compliments for GWPH.

 

AERO is kind of interesting and they will release earnings on Tuesday, the 11th.  Scott's Miracle Grow has some interest in this company.  They have a small home growing system that investors are hoping will be targeting future cannabis growers.  The stock rose from $4 to $9 one afternoon a couple of weeks ago but has settled back to around $6.

 

Should be another very interesting week.  Are we close enough to the tipping point that the winners will retain their valuations or will there be another sell-off?  My latest thinking is that if there is a sell-off, the next waves of public attention are not very far off with Washington state, Alaska, and then election time in November.  If any of my cannabis stocks do collapse before I can bail out, I think I will hold and wait for the upcoming waves rather than sell cheaply.

[peacefulfield]

Thanks for the reply, I lost $1,000 just on friday but I'm still up 400% overall.. I'[m going to base my sell if the dow starts to go up monday moring I might cash in but leave 20-25% of the stock. If it appears like its going to fall. I will hold for at least the day or week .. I do like TRTC & MJNA and for some reason HEMP...

[+washtenaut]

Much of the sector falling hard today.  Many down 20% or more.

 

GWPH running counter to that trend and is up again today - currently around $65

[+washtenaut]

Many of the cannabis stocks were starting to fade by late in the week.  Of course, press releases by individual companies were moving those individual stocks but overall, the excitement was waning.

 

The announcement came on Friday afternoon that the feds were going to allow banks to service cannabis companies as long as they were complying with state cannabis laws.  It was like the switch got flipped from red to green.  Most of the stocks rallied big on that news and finished the day at their highs.  We'll have to see if that buying excitement survives the long weekend.

 

As mentioned, investors know this sector will be huge but no one knows if the timing is right or is it still off in the future a ways.  Will the top companies retain and grow these current valuations or is there another steep sell off coming before eventual takeoff?  With most folks considering that question every day, there is a strong herd mentality in most of these cannabis stocks.  If the price starts moving up suddenly investors think 'Is this it?' and jump on board, and similarly if prices start heading down, investors think, 'Is this it?' and jump out. 

[+washtenaut]

Sanjay Gupta's new cannabis special Weed 2 on CNN 3/11 should help to move some of these again.  Some are still going up but many have stalled

 

Couple of links.  The first a new article and the second a marijuana index.

 

http://us.rd.yahoo.com/finance/external/minyanville/SIG=13hrkjpil/*http://www.minyanville.com/sectors/biotech-pharma/articles/Marijuana-Will-Be-the-Single-Best/2/27/2014/id/53944?camp=syndication&medium=portals&from=yahoo

 

 

http://marijuanaindex.org/

 

 

[pic book]

anyone else own mentor capital, or follow it?

[pic book]

mentor capital warrant exercise period ends tomorrow, march 3.  strike is $1.95, trading $4.02=$2.07 per share 'day' trade profit possible.

Edited March 2, 2014 by pic book

[t-pain]

does that mean i could buy low now and sell high ? 

 

someone tell me when tweed inc in canada is going to be listed on toronto's stock exchange. i want to get in on that.

[pic book]

yes, if you own warrants to purchase shares at a price lower than the stock is trading... but without prior action, this opportunity does not exist. 

[+washtenaut]

GW Pharm having a breakout day as it bounced off of $77.  I think word of Sanjay Gupta's upcoming Weed 2 special on CNN is getting out.  The stories of the children being helped by the epilepsy drug is also a big driver for this one.

 

AERO has been steadily climbing too.  It is up to $9.  This is the one with ties to Scott's Miracle Grow

 

Along with GWPH and AERO, I like  PHOT, MJNA, TRTC, FITX, MCIG and a few others.

 

I think the year end financials (by month end) will help some of these but most are running out of catalysts for the time being.  This means lower volumes and less overall movement. 

 

There are lots of potential catalysts out there as well as the scheduled ones related to Washington, Alaska, and then election time with votes in California and Florida among others.  The question remains as to whether or not these companies can retain their new found valuations

[pic book]

mentor capital update--was .33 cents per share a year ago.  Today, $7.68, up from $5 yest, and $4.02 the day before that.  Is this a blow-off top?  

[t-pain]

mentor capital update--was .33 cents per share a year ago.  Today, $7.68, up from $5 yest, and $4.02 the day before that.  Is this a blow-off top?  

oh man i thought it was at a high peak at $4 lol.

[pic book]

MNTR has an office in an apt. bldg, better than the last co. i was in--they had a vacant lot, and blew apart in a fraud.  And Chet Billingsly actually answers the phone, the last co. just had an ans. machine.  by the way, if you want to start a disp in michigan, strike now, the time is right and you can get money--investors are looking to get a piece of their own disp.   sound the trumpet and strike the harp, this is the promised land prophesied by scripture--milk and honey and weed aplenty and weeed and weeeed. 

[pergamum362]

Anyone looked at cara therapeutics?

[t-pain]

a reminder that sanjay gupta's weed 2 special will air tuesday march 11 at 10pm.

 

so wednesday the stocks may see some jumping action....

 

nows the time to invest, methinks. well, dont go overboard.

Edited March 7, 2014 by t-pain

[t-pain]

i'm not going to be investing in Creative Edge Nutrition, Inc. (FITX) thats for sure.

 

“Senate Bill 0660 is in line with our philosophy that medicinal marijuana is a controlled substance that must be recognized for its medicinal properties, which requires a licensed individual & entity to dispense to the patients accordingly, for various ailments” Bill Chaaban, CEO Creative Edge Nutrition states.

 

http://finance.yahoo.com/news/cen-biotech-inc-michigan-fitx-130800530.html

[+washtenaut]

What would you expect the CEO of a company trying to make money on cannabis to say?  His job is to promote his company and to increase shareholder value.

 

I can see the point being made about hopng that all large scale cannabis businesses fail.  If the industry was kept only to very small scale growers that sold at cost to patients, life would be wonderful.  I vote for that if anyone asks.

 

The problem is no one is asking how we feel about cannabis businesses.  This is coming and these companies are freight trains at this point.  All of us standing together on the tracks would only get obliterated.

 

I think that for the cannabis community, these are fantastic times to invest in a few of these companies.  In what other business sector do we have more knowledge than the paid Wall Street analysts?  When some new hot business idea hits the press releases, we know right away whether that is likely to work or not, especially in Michigan.  We know the practical side of using and growing the product and we know Michigan laws and to a lesser extent, the laws in Colorado, California, Washington, etc

 

Certainly this is a personal choice.  For instance, due to family history, I will not associate with tobacco companies. 

[bobandtorey]

Thanks for the read

[t-pain]

yeah, but invest in a company who may lobby to get rid of home grows because it directly competes with his business?

 

i agree investing in gwph because we know the medicine works. we know it will be better than placebo in fda trials. and we know when a drug gets approved in fda , the stock goes up. so thats a win-win.

 

to each his own.

Edited March 7, 2014 by t-pain

[Restorium2]

yeah, but invest in a company who may lobby to get rid of home grows because it directly competes with his business?

 

i agree investing in gwph because we know the medicine works. we know it will be better than placebo in fda trials. and we know when a drug gets approved in fda , the stock goes up. so thats a win-win.

 

to each his own.

GWPH also lobbies against us.

[+washtenaut]

OK, OK, you guys win.  I guess I must have misplaced my moral compass.

 

Just so you know, I sold all of my cannabis stocks.  Took a loss but that is OK knowing that we all will sleep better at night.

 

I put the money into 3 things.  First, a sugarless cotton candy business.  Then I put some in a new program to rescue injured and abused field mice.  Finally, I put the rest toward financing an expedition to Candyland to find the unicorn with a crystal rainbow horn.

 

Thanks guys.  I don't know, I guess money must have clouded my eyes.  You guys are the best!

[Restorium2]

If you can't find solace in the moral aspects of dumping these stocks, at least take solace in the cockamamy part. Most of this sector is an absolute ripoff pumped by truly unbelievable claims. Is there any sector that routinely makes 80% margins?

Michigan Casinos? Probably shot his arse down again, sorry.

[t-pain]

lol sorry wash. what have i done?

[+washtenaut]

lol sorry wash. what have i done?

 

You have exposed ignorance in our midst.  Nothing more, nothing less. 

 

I'll leave it to the reader to place the label where he/she feels it belongs.

[+washtenaut]

OK, OK, you guys win.  I guess I must have misplaced my moral compass.

 

Just so you know, I sold all of my cannabis stocks.  Took a loss but that is OK knowing that we all will sleep better at night.

 

I put the money into 3 things.  First, a sugarless cotton candy business.  Then I put some in a new program to rescue injured and abused field mice.  Finally, I put the rest toward financing an expedition to Candyland to find the unicorn with a crystal rainbow horn.

 

Thanks guys.  I don't know, I guess money must have clouded my eyes.  You guys are the best!

 

This is just terrible.  Just terrible!  It is a total loss.  I am ruined.  My family will now die homeless under the I-94 bridge. 

 

Well apparently that expedition to Candyland, remember?  Well they got the unicorn.  I know, crazy, right?  So they bring the thing back to warehouse until they could arrange the press conference

 

Anyway, the animal, Im sure it was scared, but anyway, it punched a hole in the wall of the warehouse.  Well, of course then the next couple of walls were just drywall and next thing you know, he has broken into both of my other businesses.

 

Before you knew it, these field mice were everywhere.  They ate up that cotton candy like they were starving.  Maybe it's addictive, eh?  Who cares, right?.  Unfortunately they all died and get this, the FDA investigators shut down the cotton candy factory because they say the mix might be dangerous. 

 

Geesh, no good deed goes unpunished, huh?  I hope you all are happy.  That is what I get for taking investing advice from a bunch of stoners.