How would you play the emerging legal industry of Mary Jane production and retailing? There are obvious risks, the Feds could shut them down tomorrow. But, there could also be great reward. Most of the plays seem to be penny stocks, which sucks.
You have TRTC, which is a hydroponic farming operation that could transition to large scale devil’s lettuce production.
You have PHOT, which already has some presence in the cannabis industry.
You have EDXC, which makes the software for tracking growth and sales, required for regulatory compliance.
I’ve been casually trying to find similar investments, but they seem limited. IMO regulatory risks is huge and can’t be discounted. But I think it is a really high growth area. I’ve actually been reading all news articles related to this topic via FlipBoard, to understand the product and landscape better. What I’m curious about is the effective cost (including things like the 25% tax) vs the “mom and pop cost”. That really is going to influence demand IMO
Of the three mentioned, the first two seem the best fit. EDXC has more to do with medical MJ logistics, which is fine, but TRTC and PHOT would seemingly have much more upside to the increase in demand. Remember, we have Washington coming online in a few months too. Wouldn’t be surprised if another state or three make similar laws by this time next year.
I need to do some digging to figure out if growers actually like the products TRTC and PHOT sell, or if private companies dominate the growing landscape. I have a few thousand lying around I could put to use by the end of the day. I’ll report back later.
Hmm. I tend to look at this regulatory issue in the opposite way - now that Colorado has legalized weed, who will be next, and which companies will benefit from further legalization?
It’s not the states you should be worried about. Remember, it’s still illegal at a Federal level (and has a lot of absurd tax rules. The taxes these guys have to pay is absurd. If you aren’t familiar with it, may want to read about it). And Obama isn’t going to be President forever. The tides could change on them not interferring.
I doubt it. I was watching Meet the Press yesterday and they had an interesting take on it. The decriminalization (if not all out legalization) actually has bipartisan support on some levels. Liberals are cool with it because they can point to all the minorities in prison for non-violent pot offenses as a waste of resources, and libertarian republicans don’t care what you do in the privacy of your own home. I was surprised. No one spoke out against it.
The tides have turned. It’ll be completely legal in 10 years. My state will probably be the last to hold out.
I saw a debate like this on Fox News a few years ago. Same thing happened – both guys were for it and the news anchor was like "well. . . " The problem is libertarianism isn’t exactly the archetype of the Republican party. I agree that the scene is favorable, but I think of all the regulatory risk it is still the Federal Gov. The Christian right (I doubt) will openly support legalization, even though they probably smoke some of that Jesus grass.
Getting financing for these companies is tricky too, due to banking laws.
Sold my PHOT for a nice 60% gain in five days. It’ll probably be down 40% tomorrow and I’ll buy again. I wonder if there are round-trip restrictions on my account…
(OTCPK:MDBX) Medbox is a leader in the development, sales and service of automated, biometrically controlled dispensing and storage systems for medicine and merchandise. Medbox has offices throughout the world, including New York, Arizona, Connecticut, Massachusetts,Florida, Tokyo, London and Toronto, and has their corporate headquarters in Los Angeles.
Medbox provides their patented systems, software and consulting services to pharmacies, dispensaries, urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities, and medical groups worldwide. In addition, through its wholly owned subsidiary,Vaporfection International, Inc. (www.vaporfection.com), the company offers an industry award winning medical vaporizer product.
Guess my timing wasn’t that spectacular, but I try not to beat myself up over missing a top. I’m sure I’ll be in and out of a few of these names several times over the next many months.
@rawraw - MDBX is an interesting one. Read the below SA link. I take SA articles with a big grain of salt, but this guy raises some obvious red flags like how they state gross margin as a dollar amount instead of a percentage. Just seems weird.