Marijuana Investments? Are We Crazy?

RV_ · December 10, 2018

Lots of folks expect the pot legalization to slow down when as we have just seen the number of states legalizing recreational marijuana are now exponentially increasing worldwide. Uruguay and Canada were the first nations to legalize recreational marijuana which also by definition includes legal medicinal marijuana.

Michigan is the 10th state to legalize recreational marijuana. This map shows every US state where pot is legal. https://www.businessinsider.com/legal-marijuana-states-2018-1?r=UK&IR=T

That map also shows the many more states where medicinal marijuana is legal only, not recreational.

Canada became the first country to legalize recreational marijuana across the whole nation. It is the second country to legalize both recreational as well as medicinal use of marijuana. that after Uruguay which is not an industrialized nation.

So why do I think it isn't a fad and is something that is here to stay?

Seeking Alpha had an article there that really said it well by Gary Bourgeaut.

Excerpt:

"Brief word on the cannabis market

With some in the market - presumably shorts trying to drive the sentiment concerning cannabis down - asserting the cannabis market could collapse, I want to once again reiterate the fact the cannabis market isn't going to fail in any way. The reason why, as I've mentioned in the last several articles, is because the major catalyst for acceptance and growth is the drive to boost tax revenue by various governments.

Understanding the promises of governments and unfunded liabilities is vital to the cannabis sector, as is the growing pension crisis in a number of states and nations. Governments at all levels are desperate for revenue, and that's why cannabis, and in the U.S., sports betting, is starting to be legalized. It's not because governments have suddenly saw the light and have a change of heart, it's that they see the fiscal handwriting on the wall and are seeking out more tax revenue in order to at least kick the can down the road once again.

What this does is ensure there will be a long-term cannabis market in general, which will not only benefit Aurora Cannabis, but all the cannabis companies that are managed well.

I keep on reminding readers of this because of the attempts to give the impression that the cannabis sector may not be able to survive. That's ludicrous, of course, but it has been suggested by some.

When hearing or reading these assertions, remind yourselves of what is driving the cannabis market at the government level, and why it's expanding so quickly. The only way there would be a collapse of the cannabis market would be if governments stopped seeking for more tax revenue streams; in other words: never."

That article can be found here in full with much more:

https://seekingalpha.com/article/4227280-aurora-cannabi-supply-deal-farmacias-magistrales-underscores-competitive-advantage?isDirectRoadblock=false

I am long ACB but that above part of the article articulated why I do not think my investment risky at all.

And perhaps will point the way to possible long term investments that should not be affected when this long running bull market turns into a bear cycle. I believe that the emerging legal marijuana industry will make many millionaires. I hope to be one of them as I bought 5 times the shares of ACB as I did Tesla, and the same amount of shares as I had in Tesla in NBEV. I believe in less than the eight years I held Tesla, that ACB will do as well or better than my Tesla investment did.

Happy and Safe investing!

RacingVenture · February 27, 2019

What the problem with legalization?

The whom - who wants it, will get it either legal or illegal ways, doesn't really matter (of course illegal is harder and riskier)

The whom - who didn't want it - still pass on it and shouldn't be affected by legalization at all, am I wrong?

Why should government make life harder, instead if helpin' ppl who needs it.

Personally, after I started some small weeds with my GF, I'll noticed later that my sleeping experience increased drastically!
I started feel super-rested in the mornings and while we weeded, it's extremerely funny for both of us - is that someone found it bad? Are you srsly? If so, I can only tell him go f****.... you know what I mean.

hdrider · February 27, 2019

Hmm, why is it every time they show people in a ad about pot that they show some person that looks like they just came from Woodstock and when they let them talk they are offensive?

If any of you have go into the (now a day hemp shops) you will see grandpa & grandma looking people as well as well dressed business type people (as well as the younger crowd). It's not just the stoned out hippies any longer. I always hate when someone is trying to support the new industry but put's out a bad signal instead.

MadeItToFT · February 27, 2019

3 hours ago, hdrider said:

Hmm, why is it every time they show people in a ad about pot that they show some person that looks like they just came from Woodstock and when they let them talk they are offensive?

If any of you have go into the (now a day hemp shops) you will see grandpa & grandma looking people as well as well dressed business type people (as well as the younger crowd). It's not just the stoned out hippies any longer. I always hate when someone is trying to support the new industry but put's out a bad signal instead.

Couldn't agree more Dave. Same as when they advertise weight reduction programs/supplements, 90% of the time, the bikini clad folks in the ads have never had a weight problem or stretch mark in their lives and have more than perfect figures.

whj469 · February 27, 2019

There are lots of people, many seniors, who use pot and have for years. The trend seems to be for more states to legalize it for recreational use and tax it. When we used it as hippies in the 60s and 70s we were told how bad it was which were mostly lies. When that is done people lose faith it what they are told. We still have a need to not allow anyone under 21 to use it because I am told that it will harm young people's mental capacities when they are developing?

NDBirdman · February 27, 2019

51 minutes ago, whj469 said:

because I am told that it will harm young people's mental capacities when they are developing?

OMG! You just described 99.9% of the politicians in office! Opps, sorry I didn't just say the truth, er, should not bring up stoners in office, er... Sorry ya'll, must be a flashback to me hippie/gypsy daze. wall.gif.75ad06fd12827b00c42d62724010731f.gif

My daughter and I walked into a pot shop when I went to Washington last fall, I just had to see it to believe it. There were no old stoners there, no young snowflakes, just a couple folks my age. I must say the 3 running the place were very professional and treated us with lots of respect. Much nicer than most booze shops I've walked into. AND, I will say, that cookie they sold me made me feel very happy.

And hungry...

rynosback · February 28, 2019

Can you imagine if Lays Potato chips added marijuana to there chips. It would give a whole new meaning to “ betcha can’t just eat one” slogan. And double as your munchies.

https://www.m109riders.com/forums/attachment.php?attachmentid=382282&d=1551314157

rynosback · February 28, 2019

Thought I would post this up for you RV.

https://www.m109riders.com/forums/attachment.php?attachmentid=382284&d=1551337775

Chalkie · February 28, 2019

Martha Stewart must think it is a good idea since she just partnered with a pot company to create CBD products.

https://www.foxbusiness.com/features/martha-stewart-partners-with-pot-company-to-develop-cbd-products

RV_ · March 1, 2019

Thanks Ryno, but without headers I have no idea what the NBEV chart you posted is saying. Have a link to where you found it?

Chalkie,

Yep, I saw that and almost spit my coffee all over my screen. I realized that some rectalcephalitics would say " Well, she is an ex con."

Yes she went to jail for insider trading. Congressmen and other politicians trade stocks knowing about legislation that will raise or lower the price of stocks. Every legislator that owns stocks they have legislated should at the least get kicked out of any political position, if not prosecuted as Stewart was.

rynosback · March 1, 2019

2 hours ago, RV_ said:

Thanks Ryno, but without headers I have no idea what the NBEV chart you posted is saying. Have a link to where you found it?

Chalkie,

Yep, I saw that and almost spit my coffee all over my screen. I realized that some rectalcephalitics would say " Well, she is an ex con."

Yes she went to jail for insider trading. Congressmen and other politicians trade stocks knowing about legislation that will raise or lower the price of stocks. Every legislator that owns stocks they have legislated should at the least get kicked out of any political position, if not prosecuted as Stewart was.

I get alerts everyday from several sources. That one came from Merrill Edge^® alerts provided by Recognia^®

RV_ · March 2, 2019

Perhaps if you just tell me what the headers were on that chart, or what the $1 and $2 were there for? I even went here: https://www.merrilledge.com/

And here: https://www.bing.com/search?q=Merrill+Edge®+alerts+provided+by+Recognia®&pc=MOZI&form=MOZLBR

Zip.

Haven't a clue. Thanks anyway. Here is a chart that shows the headers and can be easily understood. $9 target price looks good to me as well as the buy rating: https://www.marketwatch.com/investing/stock/nbev/analystestimates

TheDuke · March 2, 2019

I looked into MJ recently and can see why you picked ACB. I was looking for something that was not the biggest nor the startups. Starting there, and then adding other criteria led me to ACB. It is large enough to buy out others, yet small enough to be bought out by large companies BUD or SMG or CGC. We will see how it goes.