Investing In Marijuana?

[james.hendrickson]

So...anybody looking at any specific marijuana related stocks? Direct investing in marijuana related businesses?

[disneysteve]

I cant say I ever heard of anyone cutting random stuff with weed.

In my old practice, we did drug and alcohol testing. I had several patients test positive for marijuana and PCP. They all freely admitted to smoking pot but all vehemently denied ever using PCP. We learned through that, and through talking with other drug testing groups in the area who were getting similar results, that folks were cutting marijuana with PCP. Lovely.

You never have a clue what you are actually getting and putting into your body when you buy drugs on the street.

[james.hendrickson]

Whats been amazing is how many dispensaries there are in the Pacific Northwest these days.

Once marijuana was legalized for recreational use, dispensaries cropped up all over the entire state - even small towns with just a few hundred people seem to have them. There is also a noticeable increase in secondary businesses which are benefiting from legal pot including advertising, real estate, tourism, etc.

I think the days of questionable marijuana sold in questionable circumstances is pretty much over.

That said - its not my personal thing, and I don't partake, but growth in businesses around marijuana is substantial. So, it merits discussion in an investing forum.

[rennigade]

Whats been amazing is how many dispensaries there are in the Pacific Northwest these days.

Once marijuana was legalized for recreational use, dispensaries cropped up all over the entire state - even small towns with just a few hundred people seem to have them. There is also a noticeable increase in secondary businesses which are benefiting from legal pot including advertising, real estate, tourism, etc.

I think the days of questionable marijuana sold in questionable circumstances is pretty much over.

A real estate and tourism boom was definitely seen throughout Colorado.

I live in a small town in PA. A large firm that grows purchased a massive warehouse that sat empty for years. They dumped millions into it and will be starting a grow very soon. Im not sure how many people they're going to employee but it was nice to see a distressed building brought back to life.

[disneysteve]

James, to answer your question, no, I have not and would not consider investing directly due to my total opposition to the industry.

Of course, I realize that as legalization spreads, I'm going to end up with some of my portfolio there by default since I mainly invest in mutual funds. It's just the same as now when I would never intentionally buy tobacco stocks but I know I own them anyway through funds.

I'm not fanatical about "socially responsible" investing but I also won't go out of my way to invest in things I don't believe in.

[james.hendrickson]

James, to answer your question, no, I have not and would not consider investing directly due to my total opposition to the industry.

Of course, I realize that as legalization spreads, I'm going to end up with some of my portfolio there by default since I mainly invest in mutual funds. It's just the same as now when I would never intentionally buy tobacco stocks but I know I own them anyway through funds.

I'm not fanatical about "socially responsible" investing but I also won't go out of my way to invest in things I don't believe in.

DS - pretty much I have the same view as you. I grew up with marijuana being an illegal narcotic for so long that it take some getting used to.

[JBinKC]

So...anybody looking at any specific marijuana related stocks? Direct investing in marijuana related businesses?

The problem with the public companies in the pot business which mainly trade on the TSX or TSXV is they are priced at ridiculously expensive forward accounting metrics and are generally still small businesses in sales burning cash.

That does not at all fit within my risk profile. For instance TSX: WEED the largest player trades at 30 times sales vs .13 times for AOI a multiple of 230 times greater. What risk would you favor?


Many stocks have halved year to date and still are grossly overpriced. I think AOI is still by far the cheapest way to get exposure to the business and you have the moat of a viable business with a very low share float.

[Lawal5166]

interested in this thread

[LivingAlmostLarge]

Legalizing pot has made it also it so it decriminalizes it for minorities. Just saying.