High Times Could Yield High Returns
from the monthly column, “Stock Market Update” by Ken Harrell
I t is no secret that the marijuana/hemp industry in the United States has been heating up over the last several years. To date, there are 30 Legal Medical Marijuana States & DC, and 9 Legal Recreational Marijuana States & DC; according to: ProCon.org.
The industry has obviously made huge strides from a legal standpoint, which in turn has opened the door for the creation of businesses, jobs and investment opportunities. This is an environment in which money grows on trees…literally. The marijuana/hemp industry is clearly in position for explosive growth.
Here is an excerpt from an article published in March 2018 on Forbes.com from Contributor, Thomas Pellechia:
“According to Arcview Market Research and its research partner BDS Analytics, over the next 10 years, the
legal cannabis industry will see much progress around the globe. Spending on legal cannabis worldwide is
expected to hit $57 billion by 2027. The adult-use (recreational) market will cover 67% of the spending;
medical marijuana will take up the remaining 33%.”
This is huge!
But, cannabis is still illegal under U.S. Federal Law. How can American people legally capitalize on an industry that is based on cannabis?
Some people have privately and potentially illegally invested in dispensaries, grow operations, grow equipment, edibles, oils, extracts, co-ops, and more. However, there has been a big shift to publicly investing in cannabis-based companies via the stock market.
Over the last several years the marijuana sector of Wall Street has grown to well over 100 listed securities. Most of these stocks are penny stocks,some are junk, some are scams, and some are legitimate investment opportunities. The key is being able to sift through the mud and find the real gems.
One of the safest moves a potential “pot stock” investor can make, is following companies that have a solid brand/reputation, a bonafide business model, a growing customer base, and are highly transparent with their shareholders.
Some of the top companies that come to mind are:
1) Canadian pot producer Canopy Growth Corp. (CGC) trading on the New York Stock Exchange.
2) Cronos Group (CRON) on the Nasdaq.
3) AbbVie, Inc. (ABBV) a research-based biopharmaceutical company trading on the NYSE.
4) Scotts Miracle-Gro Co. (SMG) a leading manufacturer in the lawn & garden care industry.
Remember before investing: the cannabis sector remains volatile, and inconsistent regulations could make expansion difficult.
Considering all of the above, something very interesting is happening on Wall Street that has a lot of investors ready to consider “pot stocks” as real investment opportunity. There has been a ton of buzz and excitement behind the IPO (Initial Public Offering) talk surrounding High Times Holding Corp. High Times is a New York–based monthly magazine founded in 1974 by Tom Forçade. Nearly a quarter-million people receive the printed magazine and the High Times website attracts over 275 million monthly impressions. High Times is widely considered “Pot’s Most Established Brand.”
High Times has 23 full-time employees and has a proposed ticker symbol of: HITM. High Times Holding Corp has filed to debut on the NASDAQ later this year, with an intent of raising $50 million by publicly selling 4,545,454 shares of stock. According to a recent article by Reuters Contributor, April Joyner:
“High Times has set a price of $11 per share, 10 percent below the price the company expects the shares to trade on Nasdaq. The company also announced that former Mexican President Vicente Fox would join its board of directors.”
It is important to keep in mind that any investment can involve risk. No returns are guaranteed. And, the cannabis space has been quite risky over the years. However, some speculators predict triple-digit growth for emerging cannabis stocks. And, with companies like High Times Holding Corp & Scotts Miracle-Gro leading the pack, there may be a reality of greener grass on the horizon for “pot stock” investors.
— Ken “Blanks” Harrell, Stock Market Strategist
Bullish Institute of Financial Literacy, LLC
BullishInstitute.com – 313.744.3489