Would you invest in the Marijuana industry?

[VirtualSVT]

Uh well considering banks aren't allowing merchant solutions without insane rates and processors don't want it.

It's viewed higher risk than telemarketing companies in the Merchant world.

 

[TorchMach]

I bought 3,000 shares of PHOT at $0.05 and it exploded up to around $0.52 before they halted trading on it. When they re-opened it tanked down to $0.08 so I'm just sitting on it hoping they will get traction again. I think you'll have to pick the right one to make money.

That was a huge jump.

Sub'n to see what the pro's think of this.

 

[Adower]

With several states legalizing Marijuana and with more to surely follow, there has to be some investment opportunities out there. Whether it be backing a growing operation or store, or simply buying stock. What are everyone's thoughts on this subject? I read an article earlier this week that the state of Washington collected an absurd amount of taxes the first week of legalization.

I could some, including members of my extended family, having an objection. But if it was legal in all 50 States tomorrow, what's the difference from starting a brewery?

Discuss.

Growing it is easy. Getting rid of it for a decent price is the hard part in CA at least.

I have a friend who has a grow store. He needed 75k up front to even get vendors to supply him.

 

[Equalbracket]

Growing market with potential

Lol...lol...ok i'm over it.

 

[oldmodman]

Yes. But only an ounce at a time.

When I was much younger I saved all the seeds and from time to time I would plant a few thousand along the freeway near me.

It was always hilarious to see hundreds of six foot tall plants waving in the breeze. After a few months they would suddenly disappear.:-D

 

[Ass Eyes]

Uh well considering banks aren't allowing merchant solutions without insane rates and processors don't want it.

It's viewed higher risk than telemarketing companies in the Merchant world.

A while back, Bank of America said that since they do biz w/ medical growers they'd go ahead and work with the retail side. I'm not sure if they kept that stance.
There are other issues as well including crop insurance (can't get it since, according to my agent, it's backed by a gov't agency).

If you want into this, you've either got to have cash or the ability to get it from private parties.

 

[VirtualSVT]

A while back, Bank of America said that since they do biz w/ medical growers they'd go ahead and work with the retail side. I'm not sure if they kept that stance.
There are other issues as well including crop insurance (can't get it since, according to my agent, it's backed by a gov't agency).

If you want into this, you've either got to have cash or the ability to get it from private parties.

Considering they dropping high risk merchants from their folders I'd doubt they would pick up retail. I think somebody is gonna have to do what the firearm market did and make their own merchant system.

 

[RedRocketMike]

I do mostly what people would consider speculative investing but I don't touch marijuana stocks. My problem with the industry is I could nail down what are the best two or three but the likelihood of the government doing something that screws up the investment seems too high. My experiences thus far haven't been great. I've done some DD on a handful as a courtesy to a few people and every time find too many red flags. A friend of a friend sent me paperwork for a capital raise for one recently and it looked like an 8th grader wrote their business plan.

 

[jbs$]

Remember, when penny stocks make a big upward move, in 99% of the time, it is due to a "pump and dump" being applied somewhere.