I thought it would be a good idea opening a bank in Colorado to offer financial services to pot shops and the like. I figured the larger banks are waiting for the Feds to say whether it is okay you could just jump in. A bit risky though. Of course, to get the money needed to start a bank, I’d have to get a loan…from a bank. Also, I’ve never run a bank before.
Edit: My Mom’s name’s Mary Jane, so I would definitely would have included that in the marketing.
CANN just started trading again after a few week break courtesy of the SEC. It was down 48% yesterday. PHOT was thought to be one of the more legit pot companies around. They actually report financials and other SEC filings, unlike many other OTC stocks. I guess it has more to do with the insider trading that’s been going on.
Luckily I had zero exposure to the sector, but I have been waiting for a buying opportunity. After the dust settles, I may have to pick up some TRTC and PHOT (provided it survives).
No way everyone scrolled through this whole thread without laughing at that…
Pot is still shaky (no pun intended). Because of that I have been holding Phillip Morris, since they would likely acquire any reputable pot business. They gotta be tired of sitting on cash and making the same product for over 100 years, right?
What is the “wide moat” for any of these stocks? Sounds like a crapshoot. The industry may do well and the stocks would still go to zero - like the early days of the Internet.
Head’s up folks. Retail pot comes online in Washington next week. You could have thrown a dart at any pot stock before Colorado came online and made well over 100% in a few days. I don’t anticipate such an extreme move, but I did put a nice-sized trade in today for TRTC at $0.5336. That’s a little higher than I wanted to pay but their CEO was on Bloomberg yesterday and the hype train left the station earlier than anticipated.
I’d still be careful which stock you choose, but this is about the lowest risk point of entry you’re going to find for a while.
Does it go into effect on Monday?
Tuesday, July 8th.
The issue is that I need to have trades cleared by my boss who is pretty old school. Does seem like a fun trade to plunk a few k on.
any pot-centered mutual funds? ETFs?
Like it 
Not that I’m aware of, nor would I touch them. There are approximately 120 stocks that have something to do with pot. Of those, there are about a dozen that are more directly tied to the industry (the make grow equipment, plan to actually cultivate and sell, etc.). Of those dozen, 0-1 of them stand a chance of being around a year or two from now. You look at stocks like MDBX. Last year they were seen at the pot stock to own. Now, they’ve been exposed as a fraud. PHOT is going the same way. The old penny-stock pump and dump.
At any rate, if the ETF invested in all 120 stocks, you’d nerf your returns in a big way. Just stick to the 5-10 names that are directly tied to the industry and try to figure out which ones aren’t a scam. (This matters even if your holding period is only a week or a month. Look at what the SEC has done to CANN and PHOT. Not to mention the legislative risk that’s out there - though I think it’s pretty low at this point.)
tl;dr that ramble - If you want to gamble - and that’s really all it is - look at TRTC, MJNA, MDCN, GBLX, or CBCA (or even still PHOT for a super high risk play) to gain exposure to positive headline risk over the next 1-4 weeks.
Welp, glad I passed on that one.
Yeah, I should have probably done a bit more due diligence on the Washington rollout. They really f’cked it up. Only 10 of the ~360 possible licenses were given out and not even all 10 shops opened yesterday. And, they have a 45% tax on it…WTF? The government taxed themselves out of the market.
At any rate, I don’t see much reason to sell so I’m sticking with TRTC. I may hold beyond the elections. Lots of pro-pot initiatives being voted on (and likely passing).
VICEX will jump on that train as soon as they recognize any potential
In a pot-legal state at the moment, walking outside the smell is everywhere, nobody is doing this job, zoned out. This is the future of 'Merika, yes all the states will eventually legalize, and yes the USG is totally on board with sedating the unruly and unneeded masses. F@#k yeah, cut me off a piece of the equity baby!
Started a watch list of the 40 largest. A bunch of microcap nobodies (pink sheets and some Canada Venture exchange). I assume most of these are not real companies, going to be digging into financials, not that stoned business owners can count beans. And WTF is with the volatility, it’s worse than solar stocks!
SMG. I don’t want a bunch of pot heads running my money. But I want to be selling equipment and inputs to them.
^ They aren’t specifically in the pot business though are they? Their revenues haven’t gone anywhere in the last five years. We are supposed to think as pot belows up, it will become a significant revenue stream for them?
I’m not a pot grower, so dunno what/where I would buy. Actually this is problem, generally I practice “buy what you know”, and I don’t know anything about this. Maybe I need to interview some potheads, can think of a few I should email right now…
It’s part of their growth strategy. They’ve been buying up hydroponics and related equipment firms like crazy. Yeah, it’s not a pure play on pot, but they have some exposure and it’s actually a real company, not like some of these scams.
Yeah, spent a couple hours Sunday, and it’s really 99% idiot scam stocks.
The name mentioned earlier, Terra Tech Corp , actually looks somewhat like a real company. They are diversified across a number of areas, growing, and selling, and other stuff. Pineapple Express received the OTC skull&bones, warning messages on IBKR, shut down. A hundred names with no revenue, one employee, $400K market cap LOL…I could just buy their whole “company”.
Now I see why people avoid, pot may be the future of 'Merkia, but there’s not really a vehicle to get an option on that.