Why I Still Won’t Invest In Marijuana Stocks


Once upon a time I wrote an article describing why I don’t invest in marijuana stock. Keep in mind, I’m in now way a financial expert (my 20 year old car is proof of that!). However, I do know a thing or two about marijuana, and I have this crazy ability to ‘see the obvious’ as I always say. That last comment of course is sarcasm, as anyone with a brain and decent eyesight should be able to see the obvious.

When I’m talking about being able to see the obvious as it relates to marijuana stocks, I’m referring to one glaring problem with virtually every company offering stocks in the marijuana industry – there is no quality end product. Companies can have all the suits they want, and all the polished presentations, and the best marketing on the planet. However, if the end product(s) they are selling sucks, the stock isn’t worth anything in my opinion. A good product that people want to buy is what makes a company worth investing in or buying stock from. Instead, most of what I see out there is just hype, and leads back to some junky end product that no logical person would ever buy.

I think that more and more people are seeing this. There are times when there is so much industry hype going on that stocks artificially rise in value in the marijuana world, but then reality sets in and the stocks plummet. The chart below, via Marijuana Business Daily, displays exactly what I’m talking about:

marijuana stocks 2015

As you can see, stock prices spiked at the beginning of 2015 when there was a lot of buzz as to what the year would hold, and everyone was saying ‘the sky is the limit!’ Then reality set in, and the stocks started tumbling. Of course, stocks go up and down all the time, proven by the green and grey lines on the chart. However, The orange line, which represents marijuana stocks, basically nosedived throughout the year.

Eventually we will see some good marijuana stocks out there, backed by strong companies with strong products and/or services. However, the ones that I see out there almost always involve some type of CBD product that has low grade ingredients from overseas, or some type of product that would be more fitting for a pyramid scheme. That’s not to say that there isn’t a company out there that has a great product and also offers stocks, but I have yet to see it, for what that’s worth.


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  • Cleanslate

    Until the Federal government ends the prohibition of cannabis any investment in the cannabis industry is a high risk gamble.

  • malcolmkyle

    Canopy Growth Corp — because Canada is about to go totally green!

  • MrKevinSD

    could you imagine in investing in an alcohol company like Budweiseer at the end of alcohol prohibition? That is where we are at now with things. Some form of marijuana is now legal in 24 states. With the marijuana index so low, it’s a ripe time to buy (buy low and sell high)

    My two cents.. Only buy stocks that are directly involved in growing/selling marijuana or hemp. I am long on KAYS (first publicly traded dispensary) and TRTC (just bought Blum Oakland)

    Risky? Yes. But the volitility of these stocks could provide some major payouts.. The fall of marijuana prohibition will provide a lot of economic opportunity to those of us willing to take the risks

    • james.bond

      California has resisted the federal government since 1996, the DEA attempted to shut the State’s Cannabis program down, it failed. 20 years later you have 23 states + 15 for CBD, the Federal government did not have the resources for California, you think they can handle 37 more States?

      The authour is wrong. there are very few (about 2 – 20 in both countries) Cannabis companies in the USA and Canada that produces top notch products, that is for him to find out.

  • Zach Barillaro

    So your anchoring argument is that marijuana companies don’t have an end product to sell yet you finish your piece off with “we will see some good Marijuana stocks backed by strong companies” so what these companies are gonna be selling iPhones? Maybe the product is not good for you but many use marijuana for medical purposes proved by scientific papers. Terrible read.

    • Kaliko

      The point he is making is that stocks that are currently being traded are mostly tied to companies that aren’t actually generating revenue, or producing products that people are buying. He is also saying that in the future there will be tangible products and revenues that will allow for substantive marijuana stocks to create value, rather than the penny stock pump and dump that is happening right now. Johnny Green isn’t against marijuana…his website is The Weed Blog….

  • Randy Shipley

    By far the vast majority of companies that currently tout themselves as “marijuana” companies on the public markets will fail. That is because they have no business models and are nothing more than high priced wannabes. That said, there are also some excellent companies with solid management teams that will return exponentially to investors, just like every other industry that has grown the size the marijuana industry will eventually be. I would warn everyone to be careful – just because they are a drug dealer gone legit still does not guarantee success. As an example for dispenaries – what will happen if the IRS audits them and seizes assets because they are in violation of 280E? Many dispensaries can hide under a cloak while operating as collectives and non-profits – that comes off when they are audited as a public company and have to properly report.

  • Daymon Schultz

    If you were to focus on the marijuana stocks here in Canada, I am confident it would paint a different picture. The American market will always be risky due to the simple fact that marijuana is not federally legalized. Strong choices here are CGC (Canopy Growth Corp), OGI (Organigram Holdings Inc) and MT (Mettrum Health Corp). Sitting here patiently waiting for Trudeau to make his move!

    • Whyiowa4medical

      Exactly Daymon-this has already become a business of the best corporate moves and how can any American Republican deny that it is a VERY profitable business? It is an industry that may no longer be ignored. This is the ground floor, look how things are moving, even in conservative Republicans and you will easily see that a cannabis industry would be foolhardy to attempt to destroy. It has also forced cartels out of the business as they are, today, losing money.

  • Whyiowa4medical

    I strongly support the investment into Marijuana Corporations. Your investments fuel the model you want to see for corporate marijuana as it rolls out. Do you want someone cornering the market with two over-bred strains WHICH if you want to grow marijuana their methods must be used? I have supported two models, one that fired their sensible COO for maintaining that hydroponics is akin to placing your plants in intensive care living off IVs, and when I learned the truth about how the company had back split stealing investor money; I was almost off corporate cannabis for life.
    Then I found a model that was so close to my own self-created model that I was taken back. They are one division of a healthy company that is proposing Marijuana Farms land acquisitions that one simply buys which fulfills all state regulations, and their proposed PODS system can be expanded to any level one is capable of farming excellent cannabis, their method is any method that is organic, sustainable, and does not increase fossil fuel usage. You have complete freedom to set-up your own building or warehouse (as long as it meets the above mentioned standards) and grow some single cross strains of Thai, Panama Red, Columbian Red, and many other landrace +1 for our latitudes strains. I grew the best weed ever using a method of two or three strains per six farms and we were very successful, this is exactly their model for America!!! Their seed bank carries the original (for our latitudes) strains that once were the pricey exotics of days long past, that when properly cared for, these plants were the first to produce THC tests in the upper 20% range (mostly when people were caught in the possession of this cannabis was it ever proven). It also remains a chance for growers and breeders to create from the ground up once again and not have to hire geneticists to remove the results of over-breeding. One strain had my attention as a mother for one of the best medical strains, of my creation, it also grabbed the attention of ISU students who would test for me if it was accompanied by an ounce. This seed company had crossed this girl 4 ways, just themselves, making it worthless to my medical, low CBD, and very medical re-creation. This company is in the process of finding the landrace +1 that I can use. I promise that this company is on sound footing, has superior freedoms for growers nationwide, and has taken the slow road when releasing product in the cannabis market when it was a former precious metals mining corporation. Once again, part of my own business model as one had to have a day job and mining was theirs. This company was checked by Bloomberg and it is vastly superior to any other cannabis corporation in each and every aspect, so this was not a step I took blindly, just to be a supporter of cannabis freedom in America. Many of these companies that have no product soon will and I strongly suggest studying them as this just may be the model one will be forced to follow and I like the model I will follow to allow freedom within the company’s “organic” policies wherein I can create my own proven organic medium blend. Compare $BUDS to the rest and I can obtain stock for a dime that will put one on the ground floor of legalization nationwide, not a pitch as I have simply created a rapport with the CEO that I will pass along to my friends here at The Weed Blog because when this rolls out 2,500 shares won’t be picked up for less than $20.00 a single share; not the $25.00 blocks of 2,500 shares I have an open road to today. I would even hedge $2,500 for a 250,000 share block of this company as should every researcher in the country because you will support the very freedom you want for any and every study dependent on whole plant cannabis from molecule to fully mature plant.
    Do not invest in a cannabis company simply because it is there (the mountain climber’s defense, because it is there), check for yourself and check the company and plan with the greatest of care. Forget that the one’s who are now traded are only “penny stocks,” they could make your portfolio (if any one may have) a heavy hitter as it is a true investment over time.

  • Product selection, investing in the right team, viable marketing strategy, competitive advantage that is hard to duplicate. I have some companies in mind that are up and coming. If you want to know what opportunities I have in mind drop me a message sometime.

  • Kevin McShane


    Get a few hundred bucks in these micro marijuana companies.
    Upon Federal legalization you are guaranteed to make a large amount of

    • Psy

      Classic pump and dump…
      I either feel bad for you, or you’re in on it.
      Just look at its history.