Thursday Back to Takeaways

Today the S&P 500 and NASDAQ eclipsed new all time highs. However, most investors probably don’t feel like the market is at all time highs. The year-to-date returns have been in the low single digits with plenty of price fluctuations. Investors have been spoiled with the strength and duration of this bull market so low single digits are not too satisfying.

Cannabis stocks traded lightly with a positive bias. The 4/20 holiday is now behind us, 10ks are done, so cannabis traders and investors are looking toward the next potential catalyst. In the coming weeks, we will get a look at 10Qs for Q1.

Our daily postings have been on hiatus for the last several days as we have been on the road. The conference circuit is very busy with healthy attendance across the board. We have so much to reflect on after meeting so many investors, entrepreneurs, industry leaders, etc. The general bullishness is clearly evident.

Two takeaways we would like to discuss today:

1. Complacency is evident as many attendees seemed to believe legalization is a given. This is not the case at all. True believers in this industry understand the continued work that needs to be done. If you intend to profit from this industry, we encourage you to support advocacy to better insure your investment.

During the “Investing in Your Industry” session at Marijuana Investor Summit, this message was emphasized by Ellen Flenniken of the Drug Policy Alliance, Kelley Crosson of the Marijuana Policy Project, Taylor West of the National Cannabis Industry Association and Betty Aldworth of Students for Sensible Drug Policy. Alan Brochstein of 420 Investor also stressed the importance of supporting advocacy organizations during his talk, “Marijuana Stocks: Opportunities and Opportunists.”

2. Too many entrepreneurs are focused on growing, dispensing or selling cannabis-infused products. The “touching the plant” space is very crowded and we have concerns that new entrepreneurs are not understanding the risks they may be facing.

 

The discussion above is provided for informational purposes only and does not constitute an offer of, or solicitation for, any investment services or products offered by the author. The author is not making any investment recommendations and the opinions above do not constitute investment advice. Reference to above indices [and companies] is based on information provided by sources the author believes to be credible. Investing in the cannabis industry, as with other industries, presents certain risks including the risk of loss on an investment.

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