Marijuana Stocks

[Dmy0013]

Not asking for your opinion on the marijuana debate,

Asking your opinion buying marijuana stocks - Is this the next big thing?  Anyone here invest in marijuana companies?

[Dmy0013]

CGC is the one I see in the news a lot
CGC - Canopy Growth Company

[Heckler]

Its a great time to sell your CGC that you bought in 2015.

[mousebandit]

How does the fact that it's still federally illegal factor into regulation of stocks in this industry? Here in Oregon, the federal issue hampers all sorts of logistics and financial suspects for growers.  For. Example, growers can't even attend Small Business Development Center sponsored classes, because they are operating an illegal business (from the federal level).

[radram]

How does the fact that it's still federally illegal factor into regulation of stocks in this industry? Here in Oregon, the federal issue hampers all sorts of logistics and financial suspects for growers.  For. Example, growers can't even attend Small Business Development Center sponsored classes, because they are operating an illegal business (from the federal level).

Can't attend the event, or can not deduct the expense and therefore cost prohibitive? I thought what was killing pot is the fact that operating costs are non deductible due to the illegal nature of the product.  Imagine not being able to deduct electricity, water, fertilizer and wages for workers.

[mousebandit]

Can't attend, as the classes are subsidized by federal funds via SBDC.  I haven't yet gotten the tax scoop on the business expenses side of it.  But I do wonder if the national stock exchanges will allow their participation, and the securities regulation, all that. 

[radram]

Can't attend, as the classes are subsidized by federal funds via SBDC.  I haven't yet gotten the tax scoop on the business expenses side of it.  But I do wonder if the national stock exchanges will allow their participation, and the securities regulation, all that.

Should be interesting.  It might be an opportunity to get in on the ground floor of a new "sin stock".  Still, buyer beware. The US went from 3286 breweries in 1870 to 101 in 1980, only to begin increasing again to 286 in 1990. That number has likely exploded again with the micro brew craze these past 15 years or so.

Without a pot index fund to follow the trend, I very much see it as a needle in the haystack kind of selection.  Big home run if you pick the right ones, full loss if you don't.

Netflix had a great documentary about pot in Colorado called High Profits. It is no longer available. Did anyone else see it?

[Metric Mouse]

CGC is the one I see in the news a lot
CGC - Canopy Growth Company

I think if you're seeing it in the news, it may be too late to capitalize on this investment.

[gj83]

GWPH is a UK pharma company using cannabis.  It is one of the few marijuana plays on an exchange instead of just OTC.  Like any other biotech company the stock moves wildly based on approvals and clinical trials.


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[Scandium]

I think:

1) growth is already priced in. If anything, expectations and hype tends to be greater than the eventual reality. This goes for prettymuch everything..
2) I don't know something everyone else don't already
3) how would I know which companies would do well?

[Mother Fussbudget]

I think:

1) growth is already priced in. If anything, expectations and hype tends to be greater than the eventual reality. This goes for prettymuch everything..
2) I don't know something everyone else don't already
3) how would I know which companies would do well?

+1. This.

I tried getting into marijuana stocks when it was first legalized in WA state.  The 'darling stock' of that time was GrowLife - a pump-and-dump stock that's now in litigation because the stock was up on fraudulent information.  Caveat emptor.

[Buckthundaz]

I foolishly hold a few of these stocks.  Many are shiite, and the others I have no clue about their potential performance.  Part of my investment strategy is to ride the growth of sectors/business I believe in -- Cannabis being one of those, also solar and a few others.

Here's a watchlist of mine:
AGSTF
CNAB
CBDS
CARA
ZYNE
INSY
GWPH
AERO
ERBB
HEMP
CGRW
MJNA
WDHR
TRTC
UBQU
RMHB
CRBP
APHQF
ACBF
TWMJF
MYHI
WDLF
NWPN
LXRP
REFG
TWMJF
CANN

Some of these companies are upstream of cannabis, whether focused on acquiring companies, making CBD-based pharmaceuticals or developing better greenhouse technology for growing cannabis.  I hold a few of these, generally they have shown a slight downward trend, but my intent is to hold long on these.

I haven't done all the research.  Hard to know what this administration will do to this industry.  Seems like states are moving one way and the federal government is lagging far behind.  Not to mention the recent buzz around the DEA's stance towards CBD.  A lot of uncertainty in these matters.  I think the success stories of legal states are enough to pry the whole thing open nationwide, but I have no guess as to the timeline.
 
Marijuana REIT
IIPR http://www.forbes.com/sites/debraborchardt/2016/11/21/new-york-stock-exchange-approves-cannabis-reit/#7bbd0a265f14
Marijuana ETF
http://www.benzinga.com/general/biotech/16/12/8803266/viridian-shares-a-look-at-its-cannabis-stock-index-and-potential-marij
https://www.reddit.com/r/weedstocks/comments/5htmp0/any_etfs_with_weed_stock_exposure/

[Proud Foot]

Outside of marijuana being illegal at the federal level I don't know what the market will be for those stocks in the coming future.  IMO once marijuana becomes federally legal I see the tobacco companies jumping hard into that market.  I would not be surprised if they are already working in the background to be able to move from day one.  You might do better off investing in distributors which would not have the shadow of big tobacco to work in.

[Metric Mouse]

Outside of marijuana being illegal at the federal level I don't know what the market will be for those stocks in the coming future.  IMO once marijuana becomes federally legal I see the tobacco companies jumping hard into that market.  I would not be surprised if they are already working in the background to be able to move from day one.  You might do better off investing in distributors which would not have the shadow of big tobacco to work in.

This is my thoughts; though picking a distributor becomes a guessing game like any other stock pick.

[Dmy0013]

Im a canadian, Just curious if anyone considered the fact that Canada plans on legalizing in some form in April?

CGC is the stock I was watching, and perhaps your right that ship may have sailed already.

The other companies I am actually interested in buying now are currently pharmaceutical producers, so only selling to people who have the medical license.

However I would expect that these are the companies that will be ready to jump on the open market once it becomes legal.

Another thought would be do you see Canadian companies becoming a leader in North America?

Seeing as to my knowledge the US fed side is not game with legalizing anything.  Would you put your investment into a Canadian company which is legit and legally operating.  Now I understand that is under an assumption that Canada does actually legalize in April.

[Metric Mouse]

Im a canadian, Just curious if anyone considered the fact that Canada plans on legalizing in some form in April?

CGC is the stock I was watching, and perhaps your right that ship may have sailed already.

The other companies I am actually interested in buying now are currently pharmaceutical producers, so only selling to people who have the medical license.

However I would expect that these are the companies that will be ready to jump on the open market once it becomes legal.

Another thought would be do you see Canadian companies becoming a leader in North America?

Seeing as to my knowledge the US fed side is not game with legalizing anything.  Would you put your investment into a Canadian company which is legit and legally operating.  Now I understand that is under an assumption that Canada does actually legalize in April.

I wouldn't add much weight into a Canadian company if it would alter my AA from ISP.