Marijuana related stocks. Investment opportunities to become rich

So I'm not exactly a super saavy guy when it comes to the stock market and investing, but there's money to be made here. With Marijuana becoming more acceptable and some places becoming legal, it's only a matter of time before the rest of the United States follows. Naturally, businessmen will be (many already have) starting marijuana related businesses. Whether its production, testing of potenecy, diseases, and of course multiple labs producing medical products and tests.

With the whole business being so young, I feel as if one were willing to make long term investments in several of these businesses you could make out pretty well. I mean if you lay out $1000 into 1 company who's stock currently sell at .4 cents per share; that buys you 2500 shares. In 15 years (total guesstimate) those shares could be worth $20 a piece, turning your initial $1000 into $50,000. Of course no one can predict the future, but it is the risk of investment. If you have several investments you are bound to get lucky with one of them.
Like I said, this business is young, and it's only going to get larger increasing the total capital.

The million dollar question is, which companies to invest into. Anyone have any input?

My guess is that many of these companies will not be publicly traded and you would need to personally know the people that are creating the new companies.

Smart thinking, though. It will be a good idea to buy some low priced mj stocks, imo.

sk12 said:

My guess is that many of these companies will not be publicly traded and you would need to personally know the people that are creating the new companies.

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There are already multiple cannabis related businesses that are publicly traded. I'm sure there will be more, but investing into some if the ones that already exist might be a better choice as they have a head start. I'm thinking the most valuable companies will be those that deal with the testing of marijuana for various things. Something like how the FDA checks food products to make sure they are safe to sell and consume. Maybe a pharmaceutical company that specifically studies and produces cannabis concentrated medicine. Again, these companies already exist.

I have found a few companies that have shares for $0.03 per share. So $1000 will be 33,333 shares. If the company is successful those shares could increase astronomacally. If they reach say $5.00 in 10 years , you just turned your $1000 into $166,000.
If you look at it optimistically, that same 33,333 shares could be up to say $50 a share in 20 years. Which means you turned $1000 into 1,666,000. That's a hefty retirement fund. Again it's all a guessing game, but not impossible

i mean look at alcohol, it was prohibited for a good amount of time. Once it became legal and regulated, businesses opened and boomed. Anheuser-Busch is a good example. If you bought some of their stocks once they opened after the prohibition, you'd be a millionaire.

Much has already been written about this in a number of major magazines and papers. Penny stocks are extremely risky, and it's a good bet you'll lose most of the money.........they are penny stocks for a reason!

SSHZ said:

Much has already been written about this in a number of major magazines and papers. Penny stocks are extremely risky, and it's a good bet you'll lose most of the money.........they are penny stocks for a reason!

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Ive always been under the impression penny stocks were only penny stocks because the company is just starting out, thus it's not worth very much so neither are the stocks. I mean stocks don't start out at $100 a share unless its a multi-million dollar company which in most cases doesn't happen.

That's partially correct but not the whole story...... there is a lower requirement to release company information, financial statements, etc. The risk is exponentially higher and many businesses open up, get investor money, bump up the interest by false advertising (and numerous other schemes) and disappear as quick as it started.

rickymac21 said:

Ive always been under the impression penny stocks were only penny stocks because the company is just starting out, thus it's not worth very much so neither are the stocks. I mean stocks don't start out at $100 a share unless its a multi-million dollar company which in most cases doesn't happen.

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Your impression is mistaken. Penny stocks are priced in pennies to allow insiders and their manipulator buddies to pump the price with relative ease. They could just as easily reduce the share allotment to keep the price above $5 - which is typically the minimum price required for institutional ownership - but then they wouldn't make a quick killing by bilking ignorant retail speculators.

I recently had a CEO of a small firm ask me about a certain biodiesel penny stock. This is a man making $350k per annum who should know better and yet the greed of the penny stock idea nearly got him. It was one of his relatives that was pushing the stock, too. I explained why these stocks were garbage and he gave it a pass. The company in question went bankrupt just 3 months later.

rickymac21 said:

i mean look at alcohol, it was prohibited for a good amount of time. Once it became legal and regulated, businesses opened and boomed. Anheuser-Busch is a good example. If you bought some of their stocks once they opened after the prohibition, you'd be a millionaire.

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well not everyone can be like Busch and there will be a few years before its 100% legal they won't allow everyone to grow your gonna need a whole hell of a lot of money once you pay the government you'll have to advertise and have some of the best weed. I wouldn't do it not for no medical bud maybe a major producer if and when they do pop up in CO and WA but thats only after I try the product.

I would give it a miss for now. There are a few reasons why the ones on offer are a concern. number one being these companies need enough money to survive till the time they can churn out a profit which is who knows when - 3 years? Five years? That is a long time for a business with little in the bank who uses money coming in to either build facilities or pay wages etc without getting a positive return. Often they will hire big names to push their cred to investors but those people are no sure thing at getting the company to point B. or to advertise their shares to get more investment. The stocks seasaw mainly on hype and allure of making a load of money or often on mere predictions. You can see them go up when there is significant news toward legalisation for example but that is far far from being certain. it can be canned at any time by feds. Plenty of pumpers and dumpers. I would be very wary of looking at stock at this stage on the rise and then buying in high one the basis that it is going to stay up high and move even higher.

There is one about to get a ticker name from Canada. A licensed medical grow. so they do not face closure by authorities. Though under a scenario of said companies not being capped, as in number allowed. Plus the possibility of court challenge over legality of being a sole source for sick poor patients. Even that kind of stock is very uncertain at this early stage. it might run fast out of the gate but pitter out under a changing of scenarios. TRTC is another one, but most of the above post applies to that one. With millions in liability, little money in the bank, money coming in only from hydroponic food type business and some equipment and maybe loans to medical start up facilities, it is one to watch but not to get the hands burnt just yet. PHOT is another one similar, but on a bigger scale. Some of them might mean very well and be good business people, but it all boils down to when they will get the opportunity to fly.

PHOT and CBIS are two cheap stocks that cost pennies and deal with weed.

Have a field day looking into CBIS and it's potential for curing certain cancer tumors.
Do you gamble? Do you play scratch tickets etc for riches? Stop playing those games and save up for penny stocks to buy once a month. Don't invest a thousand dollars unless you make 250,000 a year. I.E. make them a small investment. The swings are crazy and for the most part your stock will just sit there for days on months and than something will happen but you won't sell because your going to smoke with justin bieber soon cause you'll be a gizzilionair and than the stock crashes back to where it was and you never sell it cause you saw it once for more money than it's worth and now you can't get that price out of your head. And than your thousand dollar investment one day is 500 and you just sit and wait. Sad...and than you put another 1000 in to the stock and you relies soon you should have just spent your money trying to grow pot and using that money spent on sacks of weed to pour into your 401k.
Truthfully spend small amount and than treat like plants. Watch and wait. I also would advise to not buy just one stock for 1000 but 5-7 different GAMBLING opportunities for your money.
You would be safer however to look into buying ice cream chips and fast food stock to take advantage of smoking revolution..maybe a hydro store that operates like a walmart would be something to look for..
got to get high to much writing...

smokinafatty said:

Smart thinking, though. It will be a good idea to buy some low priced mj stocks, imo.

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Medbox was a pennystock 2 yeas ago.. so was cann and canv

There is so many. Trtc is the best stock IMO. Then hemp. Then mjna. But I think in 2 years trtc can hit $5 no problem.
They actually make a product that u can go to any super market and buy. Once they get approval for mmj they will make even more.

Mentor capital is a company that has stakes in variety of different marijuana related companies. It is good way to get exposure to the legal marijuana market... it up 50 %today

So on march 2 when I posted about trtc it was .50 today hit $1.08 hope someone was listening.

Do you own due diligence and use stop when you can (though you can't in oct/pink sheets). Don't buy the hype if it isn't supported by volume, these are long term holds. Play them for what they are IMO.