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With the legalization of Marijuana and trend continuing thoughts on Co (1 Viewer)
- Thread starter uconnalum
- Start date
Gopher State
Footballguy
They need to increase the TAX on mary jane
Here's the inside scoop fellas:
Unless you get a few more states legalizing this completely, financially a lot of these companies are not going to make "real money". But there's a real chance that 10+ years in the future that some of these companies that are bought for pennies, will be major players in the Marijuana Market that is legal across the nation. You know you're going to see it in your lifetime.
The most notable event I can think of is the voting of Medicinal Marijuana in November. If it passes, most stocks in the sector are going to rise based on pure hype alone. Florida would also be huge momentum for other states to adopt weed for medical use.
Pick a company that you can believe in. MJNA deals specifically with medical marijuana so that's an obvious choice to take a bump. I think HEMP and GRNH are big enough names that when the hype starts picking back up, people will remember and reinvest in.
Meanwhile, I'm happy sitting on my HEMP as a longterm investment. I want to add some MJNA soon here. PHOT and GRNH are also on my planner. It's cool because all it would take is a couple hundred dollars in each stock and things can flip pretty quickly.
Unless you get a few more states legalizing this completely, financially a lot of these companies are not going to make "real money". But there's a real chance that 10+ years in the future that some of these companies that are bought for pennies, will be major players in the Marijuana Market that is legal across the nation. You know you're going to see it in your lifetime.
The most notable event I can think of is the voting of Medicinal Marijuana in November. If it passes, most stocks in the sector are going to rise based on pure hype alone. Florida would also be huge momentum for other states to adopt weed for medical use.
Pick a company that you can believe in. MJNA deals specifically with medical marijuana so that's an obvious choice to take a bump. I think HEMP and GRNH are big enough names that when the hype starts picking back up, people will remember and reinvest in.
Meanwhile, I'm happy sitting on my HEMP as a longterm investment. I want to add some MJNA soon here. PHOT and GRNH are also on my planner. It's cool because all it would take is a couple hundred dollars in each stock and things can flip pretty quickly.
siffoin
Footballguy
Long Term investing in these companies is a stupid idea for 1001 reasons. Here are a few off the top of my head:
1) No Profits and high Market Cap. The market cap of HEMP is $110m. If HEMP were to rise to $5.00 in share price that would be a market cap of nearly $4 billion. And $5 per share is the price that gets HEMP off the pink sheets and allows funds to buy/sell.*/** That's the market cap for this one company. I don't know how much LEGAL weed is sold in the US but as an example wine sales are about $35B per year. Would legal weed have significantly greater sales than wine? And thus what is a value that we should put on the legal marijuana industry as a whole. With only 2 legal states and 20ish medical states...these stocks are way way way over valued right now.
*probably less than 1:100 pink sheet stocks ever makes it to the Nsadaq or any other real exchange - the odds that a bunch of marijuana stocks would do so is very very very very slim - did I say the odds are slim?
**Right now these stocks are basically a market made up of small time individual speculators and the sketchiest of the sketchy OTC market makers hyping an illusion - if anyone wins in this trade bet on the slimy MM making a killing not the small time speculator.
2) How do these companies do their fiscal accounting? I'm under the impression that very few banks will even accept money from marijuana businesses. If these companies are unable to access all financial resources available to every other legit publicly traded company - how will they grow in the future? In addition an all cash business or business where the legality is in limbo sets up the potential for major accounting fraud. I can recall back in the early 2000's when telecom in all it's various forms was the "future" and it was. But you still had major accounting scandals- see Global Crossing and Worldcom as examples. One of the black swans for the legalization of marijuana will be when one or more of these companies swindles the public out of their "retirement" savings - and congress goes on a witch-hunt. These companies are likely founded and run by get-rich scammers who in the end may do far more harm than good for the LT prospects of legalization. And WHEN (not if) one of them gets busted for fraud...all of the stocks will take a MAJOR hit. An investor won't be able to get out quick enough - even if the company they are invested in is 100% legit. You will lose 90%+.
3) If marijuana does actually become federally legal (and thus marijuana companies can access the banking system) - it is far more likely that an existing company would swoop in and take over the industry. So if you want a LT investment for the future potential of marijuana you'd probably be better served here and now as well as in the future by investing in companies like Phillip Morris. You know a company with real earnings, real dividends, deep pockets, and an army of lobbyist paying off elected officials. Weed won't become federally legal by the will of the American people but rather by the will of companies who can profit and have politicians in their back pocket. Weed becomes legal if and when PM (and others) says it becomes legal and when it is in their interests for it to become legal.
These are just a few of the black swans ready to take a dump on your head. Of all the places to invest $ - marijuana is probably the single dumbest. And this is coming from someone who thinks it should be legal everywhere. It's not a matter of IF you will lose LT investing in this companies but HOW MUCH you will lose. Likely all of it.
optionmaven
Footballguy
Thanks for killing my buzz Siff. J/k. Its for reasons that you mention(and others), I wouldn't put a whole lot of money into these weed penny stocks. Investors are better off putting there money to work in companies that are diversified a bit but also in play here. I'm only in on the two that i like(MNTR 1500 shares and GRNH 4000 shares) with a stake around 5k.
Banger
Footballguy
basically it means that the market makers are shorting the crap out of it because they feel the stock has run up to its peak and is likely to come down (where they'll scoop up shs at a cheaper price).
optionmaven
Footballguy
Seems like Billingsley(CEO) is fed up with all these MM's shorting the #### out of his company at certain price levels, and called in the watchdogs on them. Good for him. If I was reading that right, they were shorting more than the available float. Not even sure how they do that legally. If MNTR drops to the1.90- 2.00 dollar level again, BUY, BUY, BUY!!
G
Guest
Guest
I already have some shares, so hoping it doesn't go back to that level again.Seems like Billingsley(CEO) is fed up with all these MM's shorting the #### out of his company at certain price levels, and called in the watchdogs on them. Good for him. If I was reading that right, they were shorting more than the available float. Not even sure how they do that legally. If MNTR drops to the1.90- 2.00 dollar level again, BUY, BUY, BUY!!
optionmaven
Footballguy
I have my doubts about it getting that low again, but you never know with overall market uncertainty. Perhaps the new floor though is that 2.70 level they were talking about in that article.WhatDoIKnow said:I already have some shares, so hoping it doesn't go back to that level again.optionmaven said:Seems like Billingsley(CEO) is fed up with all these MM's shorting the #### out of his company at certain price levels, and called in the watchdogs on them. Good for him. If I was reading that right, they were shorting more than the available float. Not even sure how they do that legally. If MNTR drops to the1.90- 2.00 dollar level again, BUY, BUY, BUY!!WhatDoIKnow said:
JohnW1970
Footballguy
They have more than doubled since this day. Hit .51 a share today. Have been up over 20 percent 3 of 4 days this week, with a 10 percent drop on the other.
optionmaven
Footballguy
Yowza!!
MNTR
$5.22
1.07 (25.78%)
MNTR
$5.22
1.07 (25.78%)
Last edited by a moderator:
optionmaven
Footballguy
Zing, Zang, Zoom. Closed at 5 bucks yesterday. Right now the last trade was 7.10.
edit:7.50 minutes later.
Last edited by a moderator:
G
Guest
Guest
What the MF is going on with this thing?Zing, Zang, Zoom. Closed at 5 bucks yesterday. Right now the last trade was 7.10.
edit:7.50 minutes later.
mquinnjr
Footballguy
What the MF is going on with this thing?Zing, Zang, Zoom. Closed at 5 bucks yesterday. Right now the last trade was 7.10.
edit:7.50 minutes later.
Have had my eye on this for awhile. Bonus hits tomorrow, which was going to fund my Roth IRA purchase of MNTR as a buy and hold.
Glad you guys are making money though.
optionmaven
Footballguy
Only speculating here, but now that it has crossed 5bucks a share and with only a 6M float, I'm guessing that some institutional buying is taking place. That and short covering are my guesses. I'll dump 1000 shares when it gets to 12.What the MF is going on with this thing?Zing, Zang, Zoom. Closed at 5 bucks yesterday. Right now the last trade was 7.10.
edit:7.50 minutes later.
kutta
Footballguy
I have made over $11K on this thing just today. Bought 5,000 shares at $2.80 after reading this thread.What the MF is going on with this thing?Zing, Zang, Zoom. Closed at 5 bucks yesterday. Right now the last trade was 7.10.
edit:7.50 minutes later.
Sweet baby Jesus!!
optionmaven
Footballguy
SWEEET!!! WAS hoping some others had gotten into this besides me and WhatdoIknow. Nice score!!I have made over $11K on this thing just today. Bought 5,000 shares at $2.80 after reading this thread.What the MF is going on with this thing?Zing, Zang, Zoom. Closed at 5 bucks yesterday. Right now the last trade was 7.10.
edit:7.50 minutes later.
Sweet baby Jesus!!
G
Guest
Guest
Starting to wish I put more than "play" money into this.I have made over $11K on this thing just today. Bought 5,000 shares at $2.80 after reading this thread.What the MF is going on with this thing?Zing, Zang, Zoom. Closed at 5 bucks yesterday. Right now the last trade was 7.10.
edit:7.50 minutes later.
Sweet baby Jesus!!
I have 430 shares at ~$2.80.
Hindsight and all that.
kutta
Footballguy
Yeah. Really good call. Gotta like seeing this in the "Day Change" column: +$10,000.00SWEEET!!! WAS hoping some others had gotten into this besides me and WhatdoIknow. Nice score!!I have made over $11K on this thing just today. Bought 5,000 shares at $2.80 after reading this thread.What the MF is going on with this thing?Zing, Zang, Zoom. Closed at 5 bucks yesterday. Right now the last trade was 7.10.
edit:7.50 minutes later.
Sweet baby Jesus!!
Wilfredo Ledezma
Footballguy
Marijuana Economy Has Plenty Of Room To Grow - NASDAQ.com
Colorado recently reported $2 million in tax revenue from recreational marijuana sales for the month of January. While the revenue potential is big, the trickle-down falls even further.
"How do you connect real smart people in other industries into this one? It's gonna be another big growth driver and we need that," industry analayst Alan Brochstein told Benzinga. "There's no 'Made In China' when it comes to marijuana."
While China can cash in big-time in its own way, the U.S. shouldn't fall behind. According to the International Business Times, Colorado estimates its total recreational and medical marijuana sales will top $600 million in the next fiscal year.
The 420 Investor said he has not paid too much attention to the revenues numbers, since it's so early in the game and many marijuana growers were not approved in time for the Jan. 1 launch. Brochstein said pent-up demand could make those numbers go higher, while constrained supply could see them drop.
"People like to watch these metrics, but there's more going on," Brochstein said. "The public companies are going to be key, not for consumption but for build out." He was referring to the building of facilities in Canada and the U.S., as well as the continued adoption of medical and recreational marijuana in the states.
This expansion would also lead to additional jobs, and with unemployment a constant issue in the U.S., this could help plenty of citizens getting back to work. A recentCannaSearch job fair in Colorado brought together 15 private companies and about 1,200 people. Brochstein heard there was a three-and-a-half-hour wait for some attendees.
"It's creating a new economy. And this was just in Colorado, which has been a pot smoking state for pretty long," said Brocshtein. "What the heck is gonna happen with Massachusetts?"
Brochstein said it would create jobs such as a "budtender," a person who assists consumers like a waiter or car salesman might. Facilities would also need people to work the sales counter and general service areas, as well as the physical growing of marijuana plants.
The journalism industry could potentially see a boost in coverage and reporters. The Denver Post added a newspaper section, and even a separate website that is run by the paper's marijuana editor.
Brochstein said he wasn't sure how many "great" jobs the industry could create, but that there is a lot of potential from the marketing side.
"There's a good chance for companies with distribution and branding to make money," said Brochstein. He said the industry at this point is very inefficient, mostly attributed to its general youth and immaturity as a business. Marijuana is also illegal under federal law, which means retail cannabis is almost strictly a cash business.
"The risk is if they're a federal bank they could lose their charter," said CNN Legal Analyst Paul Callan. "They could also be prosecuted under a variety of federal regulations that have to do with money laundering."
While the marijuana industry's economic effect may not be tangibly felt for a while, its acceptance has reaped emotional benefits for some. Brochstein recently visited Colorado to check out various facilities, stores and products. He was joined by four people from Florida and New York.
"We went into a dispensary...these guys had tears in their eyes. Everyday users -- consumers. They walked into stores and it was like it was life-changing."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Colorado recently reported $2 million in tax revenue from recreational marijuana sales for the month of January. While the revenue potential is big, the trickle-down falls even further.
"How do you connect real smart people in other industries into this one? It's gonna be another big growth driver and we need that," industry analayst Alan Brochstein told Benzinga. "There's no 'Made In China' when it comes to marijuana."
While China can cash in big-time in its own way, the U.S. shouldn't fall behind. According to the International Business Times, Colorado estimates its total recreational and medical marijuana sales will top $600 million in the next fiscal year.
The 420 Investor said he has not paid too much attention to the revenues numbers, since it's so early in the game and many marijuana growers were not approved in time for the Jan. 1 launch. Brochstein said pent-up demand could make those numbers go higher, while constrained supply could see them drop.
"People like to watch these metrics, but there's more going on," Brochstein said. "The public companies are going to be key, not for consumption but for build out." He was referring to the building of facilities in Canada and the U.S., as well as the continued adoption of medical and recreational marijuana in the states.
This expansion would also lead to additional jobs, and with unemployment a constant issue in the U.S., this could help plenty of citizens getting back to work. A recentCannaSearch job fair in Colorado brought together 15 private companies and about 1,200 people. Brochstein heard there was a three-and-a-half-hour wait for some attendees.
"It's creating a new economy. And this was just in Colorado, which has been a pot smoking state for pretty long," said Brocshtein. "What the heck is gonna happen with Massachusetts?"
Brochstein said it would create jobs such as a "budtender," a person who assists consumers like a waiter or car salesman might. Facilities would also need people to work the sales counter and general service areas, as well as the physical growing of marijuana plants.
The journalism industry could potentially see a boost in coverage and reporters. The Denver Post added a newspaper section, and even a separate website that is run by the paper's marijuana editor.
Brochstein said he wasn't sure how many "great" jobs the industry could create, but that there is a lot of potential from the marketing side.
"There's a good chance for companies with distribution and branding to make money," said Brochstein. He said the industry at this point is very inefficient, mostly attributed to its general youth and immaturity as a business. Marijuana is also illegal under federal law, which means retail cannabis is almost strictly a cash business.
"The risk is if they're a federal bank they could lose their charter," said CNN Legal Analyst Paul Callan. "They could also be prosecuted under a variety of federal regulations that have to do with money laundering."
While the marijuana industry's economic effect may not be tangibly felt for a while, its acceptance has reaped emotional benefits for some. Brochstein recently visited Colorado to check out various facilities, stores and products. He was joined by four people from Florida and New York.
"We went into a dispensary...these guys had tears in their eyes. Everyday users -- consumers. They walked into stores and it was like it was life-changing."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
G
Guest
Guest
Anyone dump some MNTR while it was up in the $7+ range? May have a chance to buy again. 
Looks like quite a few cannabis related stocks have been sliding.
Looks like quite a few cannabis related stocks have been sliding.
I've been following it too, killer pick. I almost want to buy a little on the chance it sparks up from here.posted once in Em's thread before the train wreck(i think), but I got in on ERBB at $.0175
HEMP rocketed from $0.05 to $0.30 very quickly. The hype hit and the bubble collapsed.
It looks like it's receding now though.
northern exposure
Footballguy
How's the love-life? I think you should try to date girls named Sue. For some reason I think they'll be your best match.Eminence said:I've been following it too, killer pick. I almost want to buy a little on the chance it sparks up from here.The Gator said:posted once in Em's thread before the train wreck(i think), but I got in on ERBB at $.0175
HEMP rocketed from $0.05 to $0.30 very quickly. The hype hit and the bubble collapsed.
It looks like it's receding now though.