Jun 032014
 June 3, 2014

marijuana stocks stockWhile, we are obviously bullish about the future of the global cannabis industry, potential investors and entrepreneurs shouldn’t just jump into any venture blindly. Always do your research, and, of course, if something sounds too good to be true, it usually is. Getting rich quick off of marijuana stocks, especially while marijuana is illegal, may not pan out as one might wish. For a long time, marijuana stocks didn’t exist. A few years ago, as the medical marijuana industry grew, more and more stocks started popping up. After marijuana was legalized in Washington and Colorado, interest for marijuana stocks grew, and after recreational marijuana sales started at the beginning of the year in Colorado, interest exploded.

This increased interest was great for marijuana companies that offer stock. The price for marijuana stocks skyrocketed at the beginning of this year. Unfortunately, a lot of these companies rely on hype to sell their stock, because they either have no end product or a poor end product. It was a perfect storm for these kinds of companies, who made a lot of money. At the same time, a lot of investors saw their investments rise for a bit, but have since seen those same stocks come back to earth. That’s bad news for marijuana stock investors who didn’t do their homework.

From Investor Place:

The con artists behind marijuana stock scams may try to entice investors with optimistic and potentially false and misleading information that in turn creates unwarranted demand for shares of small, thinly traded companies that often have little or no history of financial success.

If you are considering buying marijuana stocks, be leery of what’s currently out there. Err on the side of caution. Doing as much research as possible, and only after you have turned over every rock in the company’s past, present, and future should you make your purchase. Ensure that the end product or service that the company has is real, and that it’s something people are actually buying. If the company relies more on hype and what the industry ‘could become’, rather than actual sales numbers and profits rolling in, the stock is probably to good to be true.

Source: International Cannabis Business Conference

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About Anthony Johnson

Anthony Johnson is the director of New Approach Oregon, the PAC responsible for Measure 91, that ended cannabis prohibition for all Oregon adults in 2014. In addition to helping organize the International Cannabis Business Conference & the Oregon Medical Marijuana Business Conference, he also serves as a Board Member of the National Cannabis Coalition, working to legalize cannabis across the country and Show-Me Cannabis Regulation, an organization specifically working to end cannabis prohibition in Missouri.As President of the University of Missouri Law School ACLU Chapter, Anthony co-authored the measures that legalized medical cannabis possession and decriminalized personal possession for all adults within the city limits of Columbia, Missouri, in 2004. Following law school, Anthony practiced criminal defense for two years before working full time in the political field to help improve and protect civil liberties.You can follow Anthony on Twitter and also friend him on Facebook by following the links below as he posts mostly about civil liberties and politics with dashes of sports, music, movies and whatnot.
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  6 Responses to “Marijuana Stocks: Buyer Beware”

  1.  

    If you have enough cash to invest, get a broker. Trust me. Don’t play stocks on your own. A former coworker used to do this, and after all the fees he paid per transaction, he wasn’t breaking even.

    To be frank, for the last ten years, all of the “smart money” in the financial sector has been betting on Kevin Sabet’s bold new vision for the drug war: forcing people into treatment programs they don’t need.

    That’s why Bain Capital (Mitt Romney’s Vulture Capitalism firm) has been buying up and consolidating treatment clinics across the country to the tune of at least $720 million invested, to date. Fact is, substance abuse treatment is now a $7.7 billion industry, growing at a rate of two percent every year, according to the experts.

    When Bain Capital starts buying up and consolidating dispensaries in CA (when they inevitably try to form the no-kidding “Wal-Mart” of cannabis) that’s when investing in the cannabis industry will be less of a gamble. That’ll also be right around the time Kevin Sabet finds himself unemployed.

    Actually, that’s a good indicator — as soon as Kevin Sabet is unemployed, the solvency of the cannabis industry is going to go up, dramatically.

  2.  

    MARIJUANA IS NOT ILLEGAL, the government classified it as medicine long ago, the cigarette companies, and pharmaceutical companies were the only cause for Hemp and Cannabis to be illegal. they didn’t like that ordinary farmer’s could make as much if not more than the banks were making. so they (the man aka. illuminati) wanted to get rid of anything which would keep them from making a profit. BOOM!

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      What about investing in Canada MMP. Cen biotech is building a large marijuana facilty in canada, is that all hype

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        oh you mean that monopoly that’s preventing Canadians(patients) from cultivating legally?? well, if you want to support that piece of shit, I hope some Vancouver Island grower finds you slowly composting away, feeding their outdoor.Blood(dried or not) is a great nitrogen source. You’d seriously try to come up by investing in the loss of what is a basic human right?!? when ppl like you open their mouths, I find myself hoping that there really IS judgement,hellfire, and all that after this life. How about starting your own business that HELPS Canadians fight this new “no grow” law? whats that you say, ya need victims and a sure thing? then youre no better than the prohibitionists, actually. At least some of them are just stupid, but have a moral compass. Your idea of vulturing off the evil that is being perpetrated in Canada is the most vile thing Ive read in a long time.

  3.  

    That’s why the RULES OF THE GAME ARE CHANGING. WE the “PEOPLE”, have had enough of the governments bullcrap lies about everything. oh yea and they are poisoning the food. f.y.i. so grow your own garden, and consider becoming a vegetarian.

  4.  

    personally I think we are all being set up for heart break. This is one of the oldest tricks in the book for creating conflict and confusion. Remember how terrorist treated the hostages…”We are going to send you home…..never mind….. maybe tomorrow. We have to torture you some more.” Build up hope and pull the rug out from under it with devastating consequences. Look at the state/federal conflicts in Colorado. Colorado says yeah and makes money but the feds are still being assholes. brace yourselves and be very wary of wolves in sheep’s clothing.

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