Let's Get Rich Off Pot

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One of the best ways to get rich is to put your capital in the path of social change. The hard part about that is to correctly identify what social changes are coming. Much easier said than done. Once you do identify a future trend, you still have the difficult task of identifying the companies that will succeed. An investment in Atari in the 70’s would have seemed like easy money but they failed as so many do in successful industries.

Before us we have a clear cut, easy to identify social change; the legalization of marijuana. Washington and Colorado have already done so. California is nearly bankrupt and they are a liberal state. The politicians have to be salivating over the tax revenue they know they could be inhaling (sorry) and they know the liberal population will vote it in in a heart beat. I’ll be shocked if California, the worlds 7th largest economy, doesn’t legalize within 3 years. If they’re smart they will get it done much faster than that. Okay, so it will be three years. I’m sure other states will be following the lead Washington and Colorado have set.

I’ve been watching some “weed stocks”, all of them complete junk from a fundamental standpoint, but lately they’ve started to go wild. I even bought one of them last week. It’s called Medbox (MDBX) and they make security boxes and vending machines for drugs. The share price has bounced around so much in the short time I’ve owned it I’ve decided I’m going to trade the shit out of it. We’ll see how that goes.

I would much rather invest in more fundamentally sound companies but I haven’t come up with ideas I really like. I like Miracle Grow (SMG) but I haven’t found any information on the net indicating they will benefit from the trend. CREE is a company that makes LCD lighting and I could see how they would benefit from the trend but, again, I can’t find anything backing that up. (I already own CREE btw)

This site is a vast and diverse community of members. I’m starting this thread with the hope we can go Borg on the topic and put our collective mind to the task of coming up with some really great ideas. At this point I’d prefer stock Ideas because my wife and I already pursued the idea of a small retail shop. We abandoned the idea because I was insistent upon small, low rent and with drive thru potential. We found two spots but both ended up being within 1000 feet of a public park. A no no. I think ideas like that or any business startup ideas are fair game for the thread but, like I said, I’m mostly interested in stock ideas at this point.

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Just been thinking about this too, OE, but I’m just a penny ante stock purchaser. I’m all for a good growth purchase though. I remember hearing a couple of blurbs about companies that are supposed to be major players in this but not a whole lot shows up when I search.

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Lots of money to be made. There are compounds in pot that can still be brought out of certain strains by simple selective breeding. Charlottes webb is just the bottom flowers. Wait til people unlock the potential of THCV.

Just hope Monsanto and other big corps don’t take control of seeds.

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In the news here the retailers can not deposit their money because the banks will not allow it. If I understand the issue the Feds can seize the drug profits. Something to do with it still violating federal law. If that is true then the purchase of property and vehicles would be trackable and subject to forfeiture as well.

I am sure there are other ways to profit from legalized weed but I would be careful about any business venture in weed. If it requires transactions in anyway other than cash the laws are still going to be an issue. Best of luck.

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[quote]Severiano wrote:
Lots of money to be made. There are compounds in pot that can still be brought out of certain strains by simple selective breeding. Charlottes webb is just the bottom flowers. Wait til people unlock the potential of THCV.

Just hope Monsanto and other big corps don’t take control of seeds. [/quote]

I would disagree with not wanting Monsanto or other large agricultural corps. taking an interest. From an investment standpoint I would want to be holding a nice chunk of shares in a company that gets bought out. Even if they gut it for intellectual property or some other proprietary info. and it essentially disappears from existence, as long as the buyout is worth more than the initial investment- I win.

OE, a word of warning- In PA there was a boom in places called RYO (roll your own) distributors. In response to rising tobacco prices some people created a business model wherein you go to the store, measure and blend your tobacco, but a carton of tubes, then feed them into a machine that automatically and very quickly turns out a carton of cigarettes for $18.00. The tricks were that it is a pipe tobacco “cut” and therefore not cigarette tobacco, and the purchaser rents the machine and loads it them self so as to not be a production facility. Everybody makes money and all is well.
Then Phillip Morris and Ligget got involved. The had cease and desist orders issued to each and every ryo owner in operation citing that they were a production facility and a big egal batte began. End result was an addition to a highway funding bill which gutted the ryo business model by somehow not allowing them to operate the rolling machines.

Anyways, I guess what I’m getting at is that it’s great to be first and all, but there could be some unforeseen difficulties in a brand new business model based on brand new legislation.

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I think too many people had this idea already which inflated the stock prices so there is not much room from them to go except down. On the topic of social change what is something in the next 20 years or so to look out for?

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[quote]sufiandy wrote:
I think too many people had this idea already which inflated the stock prices so there is not much room from them to go except down. On the topic of social change what is something in the next 20 years or so to look out for?[/quote]

Drug rehab centers… :slight_smile:

jnd

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[quote]jnd wrote:

[quote]sufiandy wrote:
I think too many people had this idea already which inflated the stock prices so there is not much room from them to go except down. On the topic of social change what is something in the next 20 years or so to look out for?[/quote]

Drug rehab centers… :slight_smile:

jnd[/quote]

This is brilliant but would probably require someone to take the initiative to start a rehab center. I’d rather be able to sit on my couch and purchase shares.

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Who is Rich? And why does he have to stop using pot?

Is this an e-intervention?

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Until it is legal federally, expect shit returns. You have to pay tax on your top line federally. Can’t take deductions on illegal activities.

Good luck finding a reputable firm to audit your books too, lol. We can’t, ethically, based on the vast majority of opinions I’ve heard.

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So, at $.05 per share spend $50.00 for a thousand shares? Not bad, not good, or insignificant? PA also has a bill with virtually unanimous support through out the state for medical use, but may be struck down by the Governor.

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[quote]sufiandy wrote:
I think too many people had this idea already which inflated the stock prices so there is not much room from them to go except down. On the topic of social change what is something in the next 20 years or so to look out for?[/quote]

I disagree to an extent. The pot companies that are going to go out of business are way over valued, even though they could still double or triple from here. The companies that are going to succeed are very much under valued.

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[quote]countingbeans wrote:
You have to pay tax on your top line federally. [/quote]

This is an interesting point that I haven’t seen addressed. Here in Washington the media has talked extensively about not being able to deposit into banks, write checks or use credit cards. The state government has been working on ways to get around those issues but nobody has mentioned the federal income tax which seems like a pretty serious issue to overlook. If you are a grower, processor or retailer you are going to have income (assuming you’re not a screw up). If you pay your income tax, they’ve got you for trafficking mj and they will probably tack on bs charges like money laundering. If you don’t pay your income tax, they’ve got you on tax evasion and will probably tack on drug trafficking while they are at it.

I did hear it stated that the Feds would not be coming after anyone but clearly that assurance has not assured our banks or Amex & Visa. I don’t see why an individual should feel safe filing income tax if American Express doesn’t feel safe facilitating transaction.

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[quote]SkyzykS wrote:
So, at $.05 per share spend $50.00 for a thousand shares? Not bad, not good, or insignificant? PA also has a bill with virtually unanimous support through out the state for medical use, but may be struck down by the Governor.

[/quote]

I think the way to handle these companies like HEMP, PHOT and to a less extent MDBX (it’s almost a real company) is to buy a small position, trade it like crazy taking advantage of the wild swings until you have a position built on house money as they say.

The balance sheets for HEMP and PHOT are so bad it’s hard to justify putting your hard earned cash into them. On the other hand they do have excellent potential, PHOT has terrific revenue growth, so with the market and interests in these stocks so hot right now I think it’s unlikely they will go bankrupt in the next six months. I’d say now is the time to try to trade them to build a portfolio of “house money”.

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[quote]Severiano wrote:
Lots of money to be made. There are compounds in pot that can still be brought out of certain strains by simple selective breeding. Charlottes webb is just the bottom flowers. Wait til people unlock the potential of THCV.

Just hope Monsanto and other big corps don’t take control of seeds. [/quote]

Biotech is the last industry I would expect to capitalize. For the last 25 years biotech has been full of promise and in all that time I can only think of two companies that fulfilled the “promise of biotech”. Those two companies are, of course, Amgen and Genentech. I also think the MJ industry is, and will stay, too small of a niche for the likes of Monsanto. The money will be made in the small “picks & shovels” types of businesses.

That’s my opinion anyway.

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[quote]on edge wrote:

[quote]Severiano wrote:
Lots of money to be made. There are compounds in pot that can still be brought out of certain strains by simple selective breeding. Charlottes webb is just the bottom flowers. Wait til people unlock the potential of THCV.

Just hope Monsanto and other big corps don’t take control of seeds. [/quote]

Biotech is the last industry I would expect to capitalize. For the last 25 years biotech has been full of promise and in all that time I can only think of two companies that fulfilled the “promise of biotech”. Those two companies are, of course, Amgen and Genentech. I also think the MJ industry is, and will stay, too small of a niche for the likes of Monsanto. The money will be made in the small “picks & shovels” types of businesses.

That’s my opinion anyway.[/quote]

If Monsanto were able to come in and buy out and take control of legitimate strains that are used to treat actual ailments, like Charlottes Web. It’s not too difficult to isolate some of the compounds via selective breeding right with pot as is. I just see them getting their hands on it and perverting something that was developed to be affordable and help people for the sake of profit.

The reason I brought up THCV is because it’s probably the most marketable compound, if it turns out it’s effects are what I think they are… THCV is supposed to be somewhat an appetite suppressant and works with the receptors a bit differently and a more energetic/ active high. Not like a stim, I think it’s more similar to a nootropic for activity. Get off your ass and go have fun outside.

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It’s completely asinine that pot is not federally legal in all 50 states.

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[quote]Aggv wrote:
It’s completely asinine that pot is not federally legal in all 50 states. [/quote]

If the feds legalized it it would be a huge catalyst for the weed stocks. I kinda think it’s inevitable at this point. It’s more a matter of when. They told Washington and Colorado they wouldn’t interfere but now these issues of payment and banking have come up. I think the Feds, especially as more states legalize, will practically be obligated to also legalize it. We’ll see, I could be way off on this one.

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Good lord did anyone see the news where they ran a story how 3 people died of weed overdoses within the first 2 days of legalization in Colorado? Sad thing is I’m sure my parents and grandparents were ignorant enough to believe it…

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[quote]chobbs wrote:
Good lord did anyone see the news where they ran a story how 3 people died of weed overdoses within the first 2 days of legalization in Colorado? Sad thing is I’m sure my parents and grandparents were ignorant enough to believe it…[/quote]

The first three people in the history of ever to do so?