The Wonderful World of Weed.
Asked frequently “What do you think of the marijuana market?” My reply is simple — “they call it weed for a reason.” But there is nothing simple about this market, so please join me in an investment debate around the wonderful world of weed…
Growing up in the eighties in Tennessee watching Fast Times at Ridgemont High starring Sean Penn, “pot” as we called it was a flourishing cash crop and it was perceived to be a dirty little secret. And in the nineties, with almost a decade invested in the entertainment industry, I could not attend a concert without experiencing a second-hand high; a symptom of standing backstage with a band, it was my job.
In Maui in 2010 while a fumbling surfing enthusiast, it was not a surprise to me that some of the most potent pot on the planet was from the Hawaiian Islands. After one discussion with an incredibly healthy 70-year-old surfer, I recall when he replied to my comment on the scent of marijuana in the air by saying “it’s the fastest growing weed here…”
So today, while we are building what looks like high-end penitentiaries in rural Canada to grow “weed” am I the only one asking – have we lost our minds? After all, I prefer the taste of an organically grown tomato over a hydroponic one. Take it one step further and consider — does the Law of the Universe not dictate that a life full of more challenges equals a stronger, greater and more vital living form? Would it not then make sense that marijuana growing in the wild would have more potency and taste than the ones being grown indoors?
“Oh Tracy, this is saving lives and is good for epileptics.” says the former khaki slacks wearing Bay St broker now sporting trendy tight pants over designer socks that provides me with an unsolicited update on his universe. I surprise him with my confession that not only does Cheryl Shuman keeps me updated on LinkedIn, but that I am also an epileptic. So while I deeply respect the Charlotte’s Web story and love the development of healthy alternatives for a wide range of pains, we should not discount the fact that not everyone is a true believer. So for instance, my esteemed neurologist has yet to recommend medicinal marijuana. And presently the only people who have recommended marijuana or associated cannabis extract products to me are either from this sector and are shareholders whose portfolios have outperformed…
Am I missing out? Or perhaps the real question is — have I already missed out? And that’s the question we all want to know as there does seem to be some creditability of performance in some significant market valuation upticks on the CSE.
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But there are real common-sense questions here, and while I love the fact that this sector will finally contribute to the tax ‘pot’ for societal architecture, what I am really commenting on for debate is can a real investor make real money on something that is easy enough to grow in a closet with some good tin foil and a bright light bulb?
Here are some story links and facts that one of the InvestorIntel analysts Raj Shah sent me to read when I asked him to help me get a handle on what was happening with this market that you may enjoy…
- Source: Health Canada Market Data — By the end of June 2017 there were 201,398 registered medical cannabis users in Canada.
- Source: Forbes — According to latest report marijuana industry will create around 280,000 jobs by 2020 in US alone.
- Source: Forbes — North American marijuana sales totaled $6.7 billion in 2016.
- Source: Bloomberg — The US FDA hinted that it may look into marijuana health claims.
- Source: Fortune — Atlanta’s city council decriminalized marijuana on Oct 2, 2017 voting 15-0. The latest US city to do that.
As a matter of record, the only marijuana company that InvestorIntel Corp. currently represents presently as an advertorial member is iAnthus Capital Holdings, Inc. (CSE: IAN | OTCQB: ITHUF). A believer in watching the jockeys that run a company, in this case, the co-founders Hadley Ford and Randy Maslow have a pattern of building successful businesses and better yet, have experience selling businesses for a profit. When they introduced me to the iAnthus model, there is no question that the industry needs a player that “owns, operates, and partners with licensed cannabis operations throughout the United States”. We need leadership in an industry that many of us are arguably struggling to understand.
So do we dive in now?
Would like to thank Peter Clausi and Dr. Luc Duchesne who have been following this industry for the InvestorIntel audience and are helping people like me understand (or trying to) what is really going on here.
For ease, here are some of our stories and coverage on what appears to me to now be (drum roll) a real industry…
- Marijuana Decrim Will Not Take Place on Feds’ Timeline — September 10, 2017
- The more the marijuana industry changes, the more it looks like the alcohol industry all over again… — April 4, 2017
- Reality Check on Marijuana Pricing — February 20, 2017
- What will a Donald Trump presidency mean to the marijuana industry? — November 10, 2016
- Marijuana decriminalization inevitable because “the public wants it” — October 26, 2016
- Whistling Past the Marijuana Graveyard — October 11, 2016
An accomplished entrepreneur and corporate finance professional, Tracy Weslosky is the CEO for InvestorIntel Corp. and the VP of Business Development for Bellotti Capital Partners ... <Read more about Tracy Weslosky>