Please log in to view images

« prev   random   next »

2
1

Where to invest to take advantage of rapidly increasing marijuana revenue?

By someone else follow someone else   2017 Feb 12, 3:36pm 3,790 views   34 comments   watch   nsfw   quote   share    


http://www.newsindata.com/home/2017/2/10/retail-marijuana-sales-top-1-billion-in-colorado

Across the United States, legal weed sales topped $5.4 billion in 2016, up nearly 18% from the previous year. In Colorado, legal recreational retail sales of marijuana began in January of 2014 with $313 million in recreational sales and $384 million in medical sales. In 2015, while medical sales only rose a modest 5.6%, recreational sales increased more than 87% to $587.7 million. In data released Thursday Feb 9, 2016, legal sales topped $1.3 billion, with recreational accounting for $875 million of the total. The weed revenue has largely been a boon for local and the state economies, yielding $100s of millions in tax revenue.

#investing

1   BayArea   ignore (1)   2017 Feb 12, 3:57pm     ↓ dislike (0)   quote   flag        

Patrick, I posted the same thing several months ago. Check that thread out to get you started

2   mell   ignore (4)   2017 Feb 12, 4:31pm     ↓ dislike (0)   quote   flag        

Now that it is increasingly legal the big players are swamping the market with MJ, depressing the price. I'd stay away, there may be a few who will become big, but much more will fail as their margins will be crushed. Supply is outpacing demand.

3   Booger   ignore (4)   2017 Feb 12, 7:24pm     ↓ dislike (0)   quote   flag        

Buy stock in snack food companies.

4   HEY YOU   ignore (8)   2017 Feb 12, 7:30pm     ↓ dislike (1)   quote   flag        

If jeff sessions loves America,The Constitution, & all laws of the land he will FUCK UP
you drug cartel SLIME.
Trash need to spend LIFE in solitary confinement.
Martial law street executions would handle the problem with less cost.

5   BlueSardine   ignore (3)   2017 Feb 12, 7:33pm     ↓ dislike (0)   quote   flag        

Round table pizza

6   someone else   ignore (0)   2017 Feb 12, 7:34pm     ↓ dislike (0)   quote   flag        

Macropodia says

Round table pizza

Lol, excellent!

7   BayArea   ignore (1)   2017 Feb 12, 7:51pm     ↓ dislike (0)   quote   flag        

Patrick, the time to get in was when there was anticipation/speculation on legalization.

Unless you are going long, you're late to the party.

8   someone else   ignore (0)   2017 Feb 12, 8:01pm     ↓ dislike (0)   quote   flag        

BayArea says

Patrick, the time to get in was when there was anticipation/speculation on legalization.

But which companies to actually get into? Are any of them publicly traded? Prolly can't be, legally.

9   Done   ignore (1)   2017 Feb 12, 8:47pm     ↓ dislike (0)   quote   flag        

I've bought and sold substantial cannabis centered companies and will continue to do so and make money.
The problem for most is to trade/invest you will be participating in the OTC pennies market. lol The other problem
for most is that they try and trade the news which ends in slaughter for the very large majority. Here is a list of some
that are rising to the top, most I have harvested several times so for me they represent house shrs. There is still plenty of
room and money to be made in various sectors of the cannabis market. Legal producers what ever form can't use black
market suppliers and will make money hands down.

Ticker Last P/L
AGTK 0.026 983.33%
MCIG 0.393 438.36%
SING 0.054 335.48%
CBIS 0.121 278.12%
EAPH 0.0411 193.57%
MYHI 0.44 119.89%
BLOZF 0.586 83.12%
TRTC 0.3051 74.24%
BSTO 0.05 31.58%
VPOR 0.0014 7.69%
XXII 0.91 4.00%

11   mell   ignore (4)   2017 Feb 12, 9:42pm     ↓ dislike (0)   quote   flag        

Graybox says

XXII 0.91 4.00%

Didin't check all of them, but companies like this who are into engineered tobacco for smoking cessation or those that exploit health benefits of nicotine (of which there are many) are not Cannabis plays. Most OTC cannabis plays are pump and dump and the legal players don't have to tap the black market at all as weed grows very easily fast. That will depress the margins and bring the price down significantly until it concentrates in a few. Most of these companies are utter trash and only experienced traders may play these for daytrading gains as these are dead cat bounces. Buyers beware.

12   anonymous   ignore (null)   2017 Feb 12, 11:17pm     ↓ dislike (0)   quote   flag        

rando says

BayArea says

Patrick, the time to get in was when there was anticipation/speculation on legalization.

But which companies to actually get into? Are any of them publicly traded? Prolly can't be, legally.

SMG up 50% in a year

2.00 annual dividend

But cannabis is for stoned losers

13   Done   ignore (1)   2017 Feb 12, 11:27pm     ↓ dislike (0)   quote   flag        

I'm not recommending to anybody to buy any of those companies. lol. XXII is relative to me so I count it.
Most have little concept or vision as to the arena they have entered when playing penny poker and in reality
are throwing themselves blindfolded to the lions. It's a tough neighborhood a dirty business and you need
game to enter, survive and thrive.

14   someone else   ignore (0)   2017 Feb 13, 7:40am     ↓ dislike (0)   quote   flag        

errc says

SMG up 50% in a year

2.00 annual dividend

But cannabis is for stoned losers

OK, SMG looks solid so I bought some. The reasonable p/e and 2% dividend sold me, along with the beautiful trajectory over the years. Thanks for the tip!

One concern is their large debt compared to assets, but given the sustained growth over the years, I think it's probably to such a burden.

Also a positive for me is their headquarters in boring Ohio. Makes them seem more solid and real.

Cannabis may be for stoned losers, but I occasionally use it myself, and am pretty confident it's not terribly harmful. Less harmful than alcohol anyway.

15   anonymous   ignore (null)   2017 Feb 13, 7:52am     ↓ dislike (0)   quote   flag        

Cannabis may be for stoned losers, but I occasionally use it myself

😮

😎

16   BigFrank   ignore (0)   2019 Apr 17, 4:09pm     ↓ dislike (1)   quote   flag        

BayArea says

Patrick, the time to get in was when there was anticipation/speculation on legalization.


Unless you are going long, you're late to the party.



Wow two years later and this hasn't really aged well. Going long on these plays what with lack of liquidity and subsequent volatility isn't the most profitable pathway to nailing multiple baggers. Of course, hold a core and trade around a core, but take VFF for instance. It had a crazy run since January, I was able to sell near the top, trade the bounce, and then sit on the sidelines until the great Andrew Left of Citron shorting fame gave me the gift of a lifetime. Just as i was looking to start a new position, he dropped his silly short report, which spooked the market, and I was able to go Long Large and sell half the position for a nice 20% win the next day!
17   NoCoupForYou   ignore (4)   2019 Apr 17, 8:13pm     ↓ dislike (0)   quote   flag        

BigFrank says
Andrew Left of Citron


I love that man, for Sino Forest.
18   SunnyvaleCA   ignore (0)   2019 Apr 17, 8:39pm     ↓ dislike (0)   quote   flag        

I was under the impression that legalization will lead to an "efficient market," driving profits towards zero. One thing I toyed with was trying to buy stock in a company that makes growing supplies that will see demand increase. For example: a company that sells grow lights that might be used by thousands of California hobby growers. I looked, but couldn't find a supplier that I thought would take off due to increased demand. Problem was that companies that make grow lights make so much other stuff that a doubling of that market would only double 1% of the entire company's offerings.
19   Patrick   ignore (1)   2019 Apr 17, 8:41pm     ↓ dislike (0)   quote   flag        

My weed stocks have done well for me overall:

Symbol TotalChg TotalChg%
APHA -5,641.32 -28.91%
CWBHF +16,827.78 +86.14%
KSHB +3,550.95 +17.66%
CNTTF +4,397.55 +22.79%
20   WookieMan   ignore (4)   2019 Apr 18, 3:53am     ↓ dislike (0)   quote   flag        

Patrick says
My weed stocks have done well for me overall:


Same here (with some bad ones though):

ACB +19.47%
CURLF +51.97%
CVSI +70.93%
SCNA -26.51%
SOLCF -37.29%
VFF +122.75%

ACB, CVSI (tip from here) & VFF were my most (more) researched ones and had the most invested. CURLF was impulse and having fun and didn't invest much (Dammit). SCNA & SOLCF were similar, haven't worked out, but not much lost.

If I closed out today, my money would have roughly doubled in about a six month or so timeline. I've sold along the way and everything still in is house money at this point, so no probability of losing original investments.

I know margins will get tight as things get more efficient, but we're talking about a market that would rival big tobacco if it were 100% legal. States like IL, TX, NY, NJ, FL, etc. (large population states) haven't even been tapped. Some companies are going to crash and burn in this market for sure, but we're years away from finding out who the Apple, Amazon, Google, etc. of the group is.

You get lucky on just one, with even minimal money invested and you're retiring early or more comfortably. Just my 0.02. I doubt there's a 1980's Apple out there in this field, but there's still money to be made and lots of it.
21   Patrick   ignore (1)   2019 Apr 18, 8:09am     ↓ dislike (0)   quote   flag        

Yes, even though weed is ultimately a commodity, so are tobacco and alcohol, and they make boatloads of money. Someone just has to come up with a consistently high quality brand of weed and a catchy ad campaign, and that brand will be worth a billion dollars easily.

I've stopped drinking entirely for now in favor of weed (only at night, usually just before bed), and am very happy with the change. Didn't realize that a glass or two of wine with dinner was actually affecting my sleep negatively. Seemed like too little alcohol to have an effect on sleep, but I was wrong about that. Weed has the slight disadvantage that it raises my heart rate a bit, but I sleep extremely well with it anyway. Indica works better than sativa for me.
22   WookieMan   ignore (4)   2019 Apr 18, 8:39am     ↓ dislike (0)   quote   flag        

Patrick says
Didn't realize that a glass or two of wine with dinner was actually affecting my sleep negatively. Seemed like too little alcohol to have an effect on sleep, but I was wrong about that.


I drink, so not preaching, but alcohol is garbage. It's awful for the body even in moderation. Even a glass of wine a night or a beer is enough. Dry up for 4-6 months and see how you feel after that. Behind cigs, it's probably the most voluntary and legal way to use a product that will kill you while otherwise healthy.
23   BigFrank   ignore (0)   2019 Apr 18, 8:53am     ↓ dislike (0)   quote   flag        

Patrick says
Yes, even though weed is ultimately a commodity, so are tobacco and alcohol, and they make boatloads of money. Someone just has to come up with a consistently high quality brand of weed and a catchy ad campaign, and that brand will be worth a billion dollars easily.

I've stopped drinking entirely for now in favor of weed (only at night, usually just before bed), and am very happy with the change. Didn't realize that a glass or two of wine with dinner was actually affecting my sleep negatively. Seemed like too little alcohol to have an effect on sleep, but I was wrong about that. Weed has the slight disadvantage that it raises my heart rate a bit, but I sleep extremely well with it anyway. Indica works better than sativa for me.


Have you tried Hemp Derived CBD? Gives you the good sleep without the "downside" of Cannabis with high THC content. You hold an equity stake in Charlottes Web, and their products are decent but expensive. Can buy Elixinol cheaper as a stock and a product, or find a smaller private company with even better priced CBD products. Lucent Botanicals CBD Sleep mints are like the best thing ever for sleep. 40 mints for $30 take two at a time so $1.50 buys you a night of the best sleep ever.

As far as brands in Cannabis go, as Cannabis is commoditized, that actually makes for cheaper inputs for brands making finished products. My favorite US company is GTBIF Green Thumb, they already have solid revenues and cash on hand, and now they've landed what may be the best brand in the space with Beboe.

I personally would sell my stake in CVSI and CWBHF and switch to ELLXF if you want to have good exposure to Hemp and Hemp Derived CBD. Global Company instead of the previous two which are just US based and there's far more upside to Elixinol imo.
24   Patrick   ignore (1)   2019 Jul 15, 7:59pm     ↓ dislike (0)   quote   flag        

Patrick says
My weed stocks have done well for me overall:

Symbol TotalChg TotalChg%
APHA -5,641.32 -28.91%
CWBHF +16,827.78 +86.14%
KSHB +3,550.95 +17.66%
CNTTF +4,397.55 +22.79%


OK, I have to take that back. Looks like CNTTF is on the verge of getting de-listed:

https://markets.businessinsider.com/news/stocks/investor-update-kaplan-fox-continues-investigating-canntrust-holdings-inc-ctst-1028350461
26   APOCALYPSEFUCKisShostikovitch   ignore (49)   2019 Jul 15, 8:53pm     ↓ dislike (0)   quote   flag        

Establish a drive in chain called THE MUNCHIES that only serves the Jack In the Box crappy Mexican food they used to sell years ago. The ads write themselves:

YOU'RE! STONED!

YOU'RE! STARVED!

LET'S GO: THE MUNCHIES!
27   Patrick   ignore (1)   2019 Jul 15, 8:58pm     ↓ dislike (0)   quote   flag        

FortWayneIndiana says
Rehabs


Rehab for weed would be easier than rehab for coffee. It's a non-issue. Not physically addictive in the least.
28   CBOEtrader   ignore (7)   2019 Jul 15, 10:10pm     ↓ dislike (0)   quote   flag        

FortWayneIndiana says
Rehabs


If insurance pays for it, the rehab centers can charge $25k for a week long program.
29   APOCALYPSEFUCKisShostikovitch   ignore (49)   2019 Jul 15, 10:30pm     ↓ dislike (0)   quote   flag        

Right, for 25K you get a tooth-rattling slap in the morning with an entreaty to 'SNAP! OUT! OF! IT!' and a cup of coffee.
30   mell   ignore (4)   2019 Jul 15, 10:44pm     ↓ dislike (0)   quote   flag        

Most weed stocks have taken a huge beating lately which was somewhat foreseeable - the supply overhang is kicking in. Nobody can consume that much weed and the margins are being squeezed. I was bearish 6-12 months ago and am more bearish today. There will be some consolidated winners absorbing the others no doubt as weed is here to stay as well as winners who very early on invested in weed stocks when they were penny stocks. But everyone else in between will likely lose money or just break even. Not a good sector IMO, too many players, too much weed. Some are trying to differentiate themselves by going the medically certified CBD route which may be an option.
31   CBOEtrader   ignore (7)   2019 Jul 16, 5:37am     ↓ dislike (0)   quote   flag        

mell says
Not a good sector IMO, too many players, too much weed. Some are trying to differentiate themselves by going the medically certified CBD route which may be an option.


Would be a nightmare trying to figure out in which weed stocks to invest.

Cannabis is a highly regulated market of varying pockets within jurisdictions. The state jurisdictions don't allow selling over state lines.

What is happening in OR most likely will never happen in IL.

CBD , otoh is almost a national market if not already. A few large companies buying from large, contracted farmers will soon be established much like corn/soybeans.

Price of CBD will be a race to the bottom. Cannabis, within certain jurisdictions will remain expensive and highly regulates.

I'd buy whatever company looks to be winning the CBD race. Probably stay away from cannabis companies unless you take enormous time to understand investments and assets in this patchwork economy.

I expect to make millions growing /selling in IL.
32   mell   ignore (4)   2019 Jul 16, 8:16am     ↓ dislike (0)   quote   flag        

CBOEtrader says
mell says
Not a good sector IMO, too many players, too much weed. Some are trying to differentiate themselves by going the medically certified CBD route which may be an option.


Would be a nightmare trying to figure out in which weed stocks to invest.

Cannabis is a highly regulated market of varying pockets within jurisdictions. The state jurisdictions don't allow selling over state lines.

What is happening in OR most likely will never happen in IL.

CBD , otoh is almost a national market if not already. A few large companies buying from large, contracted farmers will soon be established much like corn/soybeans.

Price of CBD will be a race to the bottom. Cannabis, within certain jurisdictions will remain expensive and highly regulates.

I'd buy whatever company looks to be winning the CBD race. Probably stay away from cannabis companies unless you take enormous ti...


They will tax the hell out of it. Esp. blue states. Black market will become equally attractive again, esp. since there are few if any legal repercussions anymore. In a way they were successful in CA with the war on Tobacco. Smoking is only allowed in very few areas and the taxes are absolutely crazy, making a pack of cigarettes almost a luxury item. Same will happen for weed and people will turn to their neighborhood dealer again. Very few big players may be able to offer competitive pricing.
33   Patrick   ignore (1)   2019 Jul 16, 8:22am     ↓ dislike (0)   quote   flag        

CBOEtrader says
FortWayneIndiana says
Rehabs


If insurance pays for it, the rehab centers can charge $25k for a week long program.


Lol, this is true.

The rehab industry just has to pay off the AMA and get "marijuana dependence syndrome" listed in the DSM (Diagnostic and Statistical Manual), which is the "source of truth" for whether something is a disease or not. Then the insurance is obligated to pay.
34   CBOEtrader   ignore (7)   2019 Jul 16, 9:20am     ↓ dislike (0)   quote   flag        

mell says
Black market will become equally attractive again, esp


It never went away. Legal markets everywhere are less expensive and better quality, even the "expensive" areas including the state taxes.

Your assessment doesn't vibe w the facts.

Also, you aren't accounting for innovation within legal organizations. Im not selling flower of any kind. Extractions for vapepens , pills, edibles, etc... We have $400k of equipment to do the extraction process properly. We can process 50 pounds of biomass/day. Wanna tell me what 12 pounds of THC oil sells for once it's packaged and sold to dispensaries?

Juan Carlos down the street wont be able to compete, and he will be pinched hard if he has any comparable success. All the black market proves is the extreme profitability of the regulated market. Expected to be more than $2B/year in IL, with only 120 or so licenses to grow. Half of those coming 2 years later.

Tell me, whats my expected revenue as 1 of 60 licensed growers into a $2Billion market?

about   best comments   contact   one year ago   suggestions