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Investing in Marijuana

davycoppitt

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Mitch McConnel.toured a California cannabis facility last week. If he brings the safe banking act up in the Senate US weed stocks will run hard. Looking at CURLF, TCNFF, ORHOF. They have been really hit hard along with the entire sector lately.

That's right. When they do run it will be fast and hard. Going to start making positions into ACRGF,PLPRF, and ITHUF.
 

Oldmansmith

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IAN has been getting killed, lower lows, but also on my radar. Safe Act will help because right now the only way for these companies to raise money is by issuing more shares (dilution).

Here is a recent video from Chart Guy Dan, excellent intro on the psychology of hype and fear markets. The TA for US stocks follows, some of the levels are in CAD not USD so you have to make conversions.
 

Goldbuds

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Anybody picking up MJ stocks? I'm cautiously adding the following in hopes of a bottom soon. If you read the comments on IHUB, for example Trulieve, some investors are down 90% and still holding. Great opportunity, IMO, to park a couple of hundred.

AMMJ
BUDZ
CANN
CBDD
CBDS
CVSI
EMHTF
GRNH
MCOA
MSOS
MMNFF
PHOT
PLNHF
TCNNF
TLRY
 
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Buck

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the one thing that sticks out to me are the 'fees and .gov mandates' these growers and producers need to pay and follow, it's all a money dump and once any of these companies begin to have issues, they'll not be able to stop feeding .gov regardless of a lowered income stream, or anything else for that matter

it's taking a lot of start-up money to get many of these 'facilities' off the ground, and time, when was mj legalized here in Ca? 2017?, that was 5 years ago with talk of PM (Phillip Morris iirc) buying up hundreds of Ca acreage for mj production, that's not happened yet...

and banking for mj handlers, has that been handled yet? last i heard, it was almost as if you were producing handguns, the banks were refusing service to those in the mj industry...

just things to look for...this industry is fresh but it's financially corrupt from the top down to the private companies who've got to follow all the rules or they're law breakers of some type or another

and this country is showing signs of swinging back to the right, maybe perhaps this all goes away again...idk, probably not but something else to look for

it's intriguing to me and i'm predicting, we'll have less than 50% of the companies that were 'start-ups, in 10 years

in Ca, most adults don't smoke pot...i've checked, i smoke pot...i know something about which i type (it's difficult to share when everyone is saying No Thanks)

and yes, i can still find 10 high schoolers who'd get high if i offered, this is still the Ca i was born into, current trends indicate most professionals and most workers aren't interested with it, but...i won't search for those high schoolers, and i have zero interest in being involved with any of it, everything but my own personal grow

which i've invested my heart and soul into...Priceless! with very minimal risk as it doesn't often get cold around me, zero frost mostly every year

and i don't have to feed any 'investors'

:summer:


but if it's there to take, and i think it is, a little bit of risk never hurt anyone but dyodd, lots of it

 

Goldbuds

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Sounds like we gotta start hanging out Buck, especially around your harvest season. LOL. Thanks for your Cali perspective. When I was growing up in the Midwest, there were dry Summers where one couldn't find any weed. Dispensaries took care of that issue. Yes, it's more expensive than getting it off the street, when available. But they're getting creative with products like Moonrocks, which are buds coated in hash oil and rolled in keef, LOL. Black Afghan, etc. Not to mention, vape cartridges, and gummies that one cannot grow.

The Democrats have to do something before the Midterm elections, IMO. I read that they're trying to slip some sort of law into the defense bill.
If they get it through the Senate it may lead to a rally.
 

hammerhead

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the one thing that sticks out to me are the 'fees and .gov mandates' these growers and producers need to pay and follow, it's all a money dump and once any of these companies begin to have issues, they'll not be able to stop feeding .gov regardless of a lowered income stream, or anything else for that matter

it's taking a lot of start-up money to get many of these 'facilities' off the ground, and time, when was mj legalized here in Ca? 2017?, that was 5 years ago with talk of PM (Phillip Morris iirc) buying up hundreds of Ca acreage for mj production, that's not happened yet...

and banking for mj handlers, has that been handled yet? last i heard, it was almost as if you were producing handguns, the banks were refusing service to those in the mj industry...

just things to look for...this industry is fresh but it's financially corrupt from the top down to the private companies who've got to follow all the rules or they're law breakers of some type or another

and this country is showing signs of swinging back to the right, maybe perhaps this all goes away again...idk, probably not but something else to look for

it's intriguing to me and i'm predicting, we'll have less than 50% of the companies that were 'start-ups, in 10 years

in Ca, most adults don't smoke pot...i've checked, i smoke pot...i know something about which i type (it's difficult to share when everyone is saying No Thanks)

and yes, i can still find 10 high schoolers who'd get high if i offered, this is still the Ca i was born into, current trends indicate most professionals and most workers aren't interested with it, but...i won't search for those high schoolers, and i have zero interest in being involved with any of it, everything but my own personal grow

which i've invested my heart and soul into...Priceless! with very minimal risk as it doesn't often get cold around me, zero frost mostly every year

and i don't have to feed any 'investors'

:summer:


but if it's there to take, and i think it is, a little bit of risk never hurt anyone but dyodd, lots of it

Each MA municipality can choose to allow or disallow growth and/or sales. The towns and cities get a 3% tax and can also collect another 3% community impact fee. Our town waived the latter fee because the only shop in town has not created any hardships.
 

Cigarlover

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I have some planet 13 stock. Bag holder for awhile now. Legalization may see some money flood into the pot stocks but not holding my breath.
I've looked at moving to lots of different states to get into the industry. High cost of entry in most cases. The 1st ones in made some decent money initially then the market becomes flooded and prices plummet. Huge investment and risk but the longer term rewards are pretty shitty.
 

Buck

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Sounds like we gotta start hanging out Buck, especially around your harvest season. LOL. Thanks for your Cali perspective. When I was growing up in the Midwest, there were dry Summers where one couldn't find any weed. Dispensaries took care of that issue. Yes, it's more expensive than getting it off the street, when available. But they're getting creative with products like Moonrocks, which are buds coated in hash oil and rolled in keef, LOL. Black Afghan, etc. Not to mention, vape cartridges, and gummies that one cannot grow.

The Democrats have to do something before the Midterm elections, IMO. I read that they're trying to slip some sort of law into the defense bill.
If they get it through the Senate it may lead to a rally.
you reminded me of the 'products' they make and honestly, i'm 'forgetting' about these avenues with my rants...

"why smoke when you can Gummy?"

i'm all for it, legalization, and in some instances, cities and counties have waived fees, in other cities, it's still banned, the State hasn't cut back on their fee structure, but, in a few desert cities, they're encouraging mj business' via tax discounts

i'm not against any of it, i participate in it, but like always, i see some warning signs, memorize a few, choose not to participate financially and when the opportunity comes up to 'share' what i think i know, i do like to help others remain proactive

on another positive note:
locally they're figuring out the total number of dispensaries they'll allow in the city and there are delivery services available to bring your medication to your door so...if you want it, it's available around me (i'd just give ya some)

and another positive note:
and if i'm right, harvest time, for me, this year already produced one dud, one ounce of pure sweetness but the plant matured too early, probably from a hydroponic plant, idk exactly

and i've got enough at different intervals i may be picking until Nov or Dec, depends on how everything out of my control goes, know what i mean vern?

always the slave to mother nature with an outdoor grow


...and i've only got a few plants going because i've got more than enough in 'storage' so...this is just to off-set the time i have to spend with the tomatoes and white flys - frkn bstrds....those and aphids - more frkn bstrds

anyways,

:weed:
 

hammerhead

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Private equity and some previous experience in getting pot shops off the ground built, yes it is growing and stable, got the one in town up and running. 2 people that were boots on the ground running the operation ended up buying out the other handful of investors.

There's money to be had by all.
 

Goldbuds

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I have some planet 13 stock. Bag holder for awhile now. Legalization may see some money flood into the pot stocks but not holding my breath.
I've looked at moving to lots of different states to get into the industry. High cost of entry in most cases. The 1st ones in made some decent money initially then the market becomes flooded and prices plummet. Huge investment and risk but the longer term rewards are pretty shitty.
I went into Planet 13 Las Vegas in March to do some "research". Wow! I have never seen anything like it. It was like going into a fancy shopping mall. It didn't smell skunky like some of the local places. In fact, I couldn't even smell weed. The product was top notch. When I got home I bought the stock and promptly sold it as it went lower. I eventually bought it again. My cost basis is $1.37/share. PHOT went down 23% last Friday and I bought a little more. Watching it closely, if it continues to decline I'm selling to avoid getting trapped as has been so common.

I also liked the product in Medmen, outside of LA but nowhere as cool as Planet13. LA Kush was really good there. I have an order in for more after it shot up over 20% last Thursday.
 

mtnman

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I have $1200 invested in several pot stocks, TLRY, GTBIF,CRON and ACB. I bought them in President Trumps first year in office. By the end of his term They were worth a little over $4000. Today they are worth $423. The Dems are destroying every thing...
 

Goldbuds

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I have $1200 invested in several pot stocks, TLRY, GTBIF,CRON and ACB. I bought them in President Trumps first year in office. By the end of his term They were worth a little over $4000. Today they are worth $423. The Dems are destroying every thing...
mtnman, do you think they'll ever have medical or recreational in Tennessee?
 

mtnman

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mtnman, do you think they'll ever have medical or recreational in Tennessee?
Had you asked this question 5 years ago the answer would be "I'll be a cold day in hell before that happens" but today there are a LOT of new faces moving to Tennessee and the politics are changing. There may be hope.
 

Goldbuds

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GRNH possible cup forming.

MCOA 25% was my best performer today. Still a bargain at .0005 but pretty volatile. I remember the day it shot up to 20 cents.


Adding:

CBDS
CVSI
EMHTF

Can anyone recommend good charting software?

1658284621750.png
 

Goldbuds

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Planet 13 up 10.64% was one of few in the green for me, Thursday. Looks like some profit taking on the following news. In my opinion, this is accumulating news; at least til the Senate vote. https://www.nj.com/marijuana/2022/0...ban-on-marijuana-introduced-in-us-senate.html




Long-awaited bill to end federal ban on marijuana introduced in U.S. Senate​

  • Updated: Jul. 21, 2022, 3:32 p.m.|
  • Published: Jul. 21, 2022, 8:00 a.m.
Senate Majority Leader Chuck Schumer and Sens. Cory Booker and Ron Wyden appear at a press conference

From left, Senate Majority Leader Chuck Schumer, D-N.Y., Sen. Cory Booker, and Senate Finance Chair Ron Wyden, D-Ore., announce a draft bill that would decriminalize marijuana on the federal level at a press conference on July 14, 2021. Amanda Andrade-Rhoades | AP Photo

By
Long-awaited U.S. Senate cannabis legislation that would end the federal ban on marijuana while encouraging research and taking steps to help minority communities hardest hit by the war on drugs was introduced Thursday.

The Cannabis Administration and Opportunity Act would leave it to the states to decide whether to legalize the drug. Many, including New Jersey, already have, putting them in conflict with federal law. Those state-legal businesses would be able to obtain checking accounts, credit cards and other financial services now denied to them.


The bill would expunge federal cannabis convictions and encourage states to follow suit; require the Food and Drug Administration to set strong cannabis health, safety and labeling standards; encourage research into the drug; impose a federal excise tax of 5% to 12.5% for smaller businesses and 10% to 25% for larger concerns; and direct the National Highway Traffic Safety Administration to address drugged driving, requiring a standard for cannabis-impaired driving within three years.


“As more states legalize cannabis and work towards reversing the many injustices the failed war on drugs levied against Black, brown, and low-income people, the federal government continues to lag woefully behind,” said U.S. Sen. Cory Booker, one of the bill’s chief sponsors along with Senate Majority Leader Chuck Schumer, D-N.Y., and Finance Chair Ron Wyden, D-Ore.


“With strong restorative justice provisions for communities impacted by the drug war, support for small cannabis businesses, and expungement of federal cannabis offenses, this bill reflects long overdue, common sense drug policy,” Booker said.




PLNHF
1658466755902.png
 

Goldbuds

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Anybody know why this thread doesn't show up on the new threads summary?
 

Goldbuds

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Planet 13 article.​


1659059920445.png

2 Marijuana Stocks to Buy Hand Over Fist and 1 to Avoid Like the Plague​

By Sean Williams - Jul 26, 2022 at 4:21AM

KEY POINTS​


  • Global cannabis sales are expected to grow by a compound annual rate of 16% through 2026.

  • Two small-scale pot stocks are uniquely positioned to thrive as the legal weed industry grows.

  • Meanwhile, another highly-popular marijuana stock is nothing but trouble.
Motley Fool Issues Rare “All In” Buy Alert

OTC: CRLBF

Cresco Labs Inc.​

Cresco Labs Inc. Stock Quote


Market Cap
$1B

Today's Change

(-0.56%) -$0.02
Current Price
$3.58
Price as of July 28, 2022, 2:59 p.m. ET

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cannabis industry has some incredible deals at the moment, but not all pot stocks will be winners.​

You might not realize it, considering how poorly the stocks in the cannabis industry have performed over the past 18 months, but legal marijuana remains one of the world's fastest growing trends.
In March, cannabis-focused research firm BDSA released a report ("Essential Cannabis Insights") that projected global sales would grow from an estimated $35 billion in 2022 to $61 billion by 2026. For those of you keeping score at home, that's a compound annual growth rate of more than 16%; and it comes on the heels of 22% annual sales growth over 2021.
Dried cannabis buds in a clear glass jar that's set atop a fanned pile of twenty dollar bills.

IMAGE SOURCE: GETTY IMAGES.
Although federal legalization efforts have been stymied in the highly lucrative U.S. market, ample opportunity exists for multi-state operators (MSOs) to thrive. At the moment, there are two marijuana stocks that patient investors can confidently buy hand over fist, as well as one superficially inexpensive pot stock that should be avoided at all cost.

Marijuana stock No. 1 to buy hand over fist: Cresco Labs​

The first pot stock that can help long-term investors see the green is none other than U.S. MSO Cresco Labs (CRLBF -0.56%).
To address the elephant in the room, Congress has failed on multiple occasions to pass cannabis banking reform and/or legalization reform. While this does lead to ongoing operating redundancies for cannabis stocks -- e.g., setting up cultivation and processing facilities in multiple states since the interstate transport of weed is illegal -- the legalization of pot at the state level in roughly three-quarters of all states is providing abundant growth opportunities for MSOs like Cresco.

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undefined Stock Quote


CRLB.F

KEY DATA POINTS​

Market Cap
$1B
Day's Range
$3.45 - $3.60
52wk Range
$2.42 - $11.67
Volume
227,875
Avg Vol
474,088
P/E (ttm)

As of the end of March, Cresco was a modestly sized MSO, with 50 operating retail locations and a presence in 10 states. Although Cresco has a footprint in a number of high-dollar markets, it's really focused its attention on limited-license markets, such as Illinois and Pennsylvania. States where retail license issuance is being purposely limited ensures that smaller players like Cresco have a fair shot to build up their brands and gain a loyal following.
But Cresco Labs is unlikely to be a modestly sized player for much longer. In late March, Cresco announced its intent to buy MSO Columbia Care (CCHWF -0.53%) in an all-share deal. All signs point to this deal closing sometime in the fourth quarter. Should this deal close, Cresco's operating retail locations would swell to north of 130, with its footprint growing to 18 states. Columbia Care has primarily grown by acquisition, and the Cresco acquisition of Columbia Care would be a quick way to more than double its reach in the world's most-lucrative weed market.
In addition to growing its retail presence by leaps and bounds, Cresco Labs has the industry's leading wholesale cannabis segment. Though Wall Street largely downplays wholesale marijuana due to its lower margins, relative to the retail side of the equation, Cresco has the volume to more than offset weaker margins. That's because it holds a highly coveted cannabis distribution license in California, the nation's top weed market by annual sales. This license allows Cresco to place its proprietary pot products into more than 575 stores throughout the Golden State.
Cresco is about to get a lot larger and should have no trouble pushing into recurring profitability by 2023. That makes it one of the most-intriguing pot stocks in North America.

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undefined Stock Quote

PLNH.F

KEY DATA POINTS​

Market Cap
$414M
Day's Range
$1.81 - $1.97
52wk Range
$1.08 - $5.73
Volume
252,233
Avg Vol
376,559
P/E (ttm)

Marijuana stock No. 2 to buy hand over fist: Planet 13 Holdings​

The second marijuana stock to buy hand over fist with annual weed growth in the double digits is U.S. small-cap MSO Planet 13 Holdings (PLNH.F 0.00%).
Without a doubt, you could say Planet 13 has taken the road less traveled. Whereas most MSOs have opted to establish a retail, cultivation, and/or processing presence in as many high-dollar, legalized pot markets as possible, Planet 13 has a presence in just four states, with a mere three operating dispensaries. But it's this unique operating approach that gives Planet 13 a sustainable edge.
To date, the company has opened two SuperStores. The Las Vegas SuperStore, just west of the Strip in Nevada, spans 112,000 square feet and features an events center, consumer-facing processing center, and café. Meanwhile, the Orange County SuperStore in Santa Ana, Calif., sits about 15 minutes from Disneyland and covers 55,000 square feet. Approximately 30% of this space is devoted to selling.
Planet 13's SuperStores are enormous and feature unrivaled selection for both dried cannabis flower and higher-margin derivative products. These stores have also incorporated the ideal combination of technology and personalization. Consumers can use self-pay kiosks to speed up the purchasing process, and also have access to personalized budtenders who can show them around.

Despite only having a handful of operating retail stores, Planet 13's reach is rapidly growing. Its proprietary brands can be found in more than 100 retail locations. What's more, the company plans to bring its SuperStore concept to Chicago, Ill., while opening its neighborhood retail concept in Florida. These neighborhood stores will offer a boutique-styled setup and span roughly 4,750 square feet. Medical marijuana-legal Florida has only assigned 22 retail operator licenses, but license-holders like Planet 13 can open as many stores as they'd like. That's great news for one of the top-dollar cannabis markets in the United States.
Similar to Cresco Labs, Planet 13 is likely on the cusp of recurring profitability and should be there by no later than 2023. With an operating model that simply hasn't been duplicated, Planet 13 looks like a no-brainer buy for long-term investors.
A cannabis bud and small vial of cannabidiol oil set next to a miniature Canadian flag.

IMAGE SOURCE: GETTY IMAGES.

The cannabis stock to avoid like the plague: Aurora Cannabis​

But there's another side to this story. If there's one consistency about next-big-thing growth trends, it's that not every company is going to be a winner. Although the global cannabis industry offers blazing growth through 2026, Canadian licensed marijuana producer Aurora Cannabis (ACB 2.21%) is a pot stock investors should avoid like the plague.
Three years ago, there may not have been a more widely held or popular marijuana stock on the planet than Aurora Cannabis. This acquisition-happy company had amassed a portfolio of 15 production sites and could have, in theory, produced north of 600,000 kilos a year of cannabis if its cultivation sites were fully operational. The expectation had been that Aurora would control a significant chunk of the legalized Canadian market, as well as become an exporting powerhouse.
Unfortunately, none of this came to fruition for Aurora, and the company has been trying to dig its way out of a very deep hole for years. Even after shuttering some of its smaller production facilities, halting construction on a number of major projects, and reducing expenses (including stock-based compensation), it hasn't come close to profitability and has continued to burn cash.
To be fair, some of this blame lies with Canadian regulators, which set pot stocks up to fail. The Canadian federal government was slow to approve cultivation licenses, while Ontario, the nation's largest province, failed to approve retail licenses in a timely manner.
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undefined Stock Quote


KEY DATA POINTS​

Market Cap
$408M
Day's Range
$1.31 - $1.40
52wk Range
$1.21 - $8.69
Volume
7,713,616
Avg Vol
10,627,416
P/E (ttm)

But most of the blame lies with Aurora. The company vastly overestimated production demand and grossly overpaid for around a dozen acquisitions. Aurora Cannabis ultimately wrote down billions of dollars in goodwill tied to these buyouts.
The company's persistent share-based dilution is equally damaging to its shareholders. Because no amount of cost-cutting has been able to move Aurora into the black, the company has had to issue stock on more occasions than I count to raise capital. Since the midpoint of 2014, Aurora's split-adjusted share count has ballooned from a little over 1.3 million shares to more than 224 million shares, as of March 31, 2022. Its share count will likely continue growing with net losses expected for the foreseeable future.
Aurora Cannabis might look like a superficial bargain at just $1.41 a share, as of last weekend, but it continues to be one of the worst possible investments in the cannabis space.



 
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