Would you invest in a Cannabis ETF?

Let’s face it, Cannabis is the next boom market. But, it defies all the rules on investing. The only ETF is unavailable on the US market. Generally, I only invest in equities that have dividends, but to my knowledge, and please correct me if you know of one, none offer dividends. And, never buy anything less than $10, but none of them are over $10, and only one, is over $5. Only one has a good P/E ratio. So how am I choosing a collection of promising cannabis stocks with incredible potential? I look at several factors. I start and end with the science. Does the company have the scientific expertise to create various products batch tested consistency. Are they able to supply products at Big Pharma’s quality? I happen to know this since my partner in crime worked for big pharma and then went to Oaksterdam University, the world leading course in Medical Cannabis. LXRP is an example of a really inexpensive company with great science. Then I look at Growing Expertise and costs. Chronus is my current favorite, as they already were a very successful Israeli agricultural Kibbutz, Gan using leading agriculture science and exporting around the world. And, really smart people. And, I look for the early companies that already have contracts for their products. And, do they have a great, practical business plan, with the business expertise and experience to run the business. The business people should understand the science. After looking at those factors, I throw all other factors out the wind and read about each company. Do they freaking know what they are doing? We return to both the science, maximizing growing space while using organic growing methods. As part of my girlfriend’s course at Oaksterdam University, we went on field trips to dispensaries all over California and some other states. It’s important to see what’s out there and using my girlfriend’s big pharma expertise and training in cannabis science, she adds incredible value. She is in her lab making whole plant bath salts and pain creams, with people begging for her products. My cousin had a broken, painful, swollen wrist. Nothing really helped. Her pain cream had the swelling gone in 1/2 hour and the pain was virtually gone. If you want the potential to make a LOT of money, pick the next few Cannabis stocks that will take off and wait a few years. Good luck. I’m really open to ideas, feedback, even if you think what I wrote is bonkers. Charts are meaningless with these companies.

Lila Steele: Looks like the MJ market may be approaching a ” peak high ” literally, as supply is starting to exceed demand, forcing producer prices down and costs up.. more smoke here these days than money in my opinion, looking at the facts.. (y) Forbes.com

forbes.com
California Cannabis Retail Market Revealed: Big Data Tells All

Averie Boyd: Interesting article. I get my recommendation letter and card from a company they mention, Easeup, which offers Web-based Doctor visits, and a delivery service if you live in the Bay Area, which I don’t.I’m aware of the new regulations, since my girlfriend took the latest course, and it’s all about all that and the science, of both creating products, and the science of growing. As I mention, my girl friend has worked in Big Pharma for years and understands all aspects of compliance, as well as testing and purity. Needless to say, the young companies want her badly, but she wants to be her own boss.I would never buy anything on the black market because it could easily have pesticides or be laced with anything. People that try her products write checks for $10K or so, just wanting to invest in her incredible products, but she’s not taking investors at this time.She is collecting testimonials for her pain cream and bath salts. If Easeup went public I’d invest in them.

Averie Boyd: I’ve seen this article, and get a 420 newspaper each day.

Maddison Peters: LXRP is a fantastic company rooted in science. Been watching them for over a year now and everything they have been working towards is coming to fruition!

Lila Steele: Ride the MJ wave before it becomes the next bubble.. 🙂

Averie Boyd: It will take caution. Most of the companies will fail, the vast majority. You have to pick the winners. Science first, Production Efficiency, Business Acumen, existing contracts, quoted in the industry, recognized for excellence, and people with a lot of brains.

Chloe Hunt: Hmmj, acb, weed, abcn, ogi, cbw, potn, xxii

Averie Boyd: Not all are available in the US, a shotgun approach may be successful. It will be survival of the fittest, and those that fill out the correct forms to be certified.

Lila Steele: Averie Boyd:, There is definitely money to be made in MJ.. my cousin made a fortune in Canada back in the 70’s when it was off the radar.. paid for his 630 BMW in cash with it… :-)LOL, when my mother found us drying a huge cache of MJ on our cottage lawn.. she was shocked. She said that was what they used to feed to their dairy cows back in Lithuania. Lithuanian dairy products are in very high demand in the EU these days, but illegal in the US.. for now. Maybe I should be an importer.. ha !

Averie Boyd: One thing I do not like, is none of these stocks pay dividends. Generally, I only buy stocks that have a dividend.

Lila Steele: Averie Boyd:, Few startups do, as they are reinvesting in infrastructure if they are smart.. it takes a company with a huge cash surplus ( as they become takeover targets ) before they start paying out dividends…:-(

Lila Steele: Averie Boyd:, another strategy that you can do, if you hold 100 share lots of stocks, and are authorized to sell covered calls against them by your broker. This can be more profitable than most dividend payment strategies, but a bit more work, as you repeat selling the covered calls, as soon as they expire in your favour. I do this with most of the stocks that are not too volatile, that I have 100 lot positions in.. (y)

Myles Berry: Lila Steele: Care to share a handful of those companies you sell covered on? How far out do you sell to ensure collecting the ideal premium while mitigating risk?

Averie Boyd: Myles Berry: I’m buy and hold. The ideal time to hold a stock is forever. Yet, I do sell sometimes if I think a company is goiing down. I lost a lot of money years ago when I invested in Chinese emerging market stocks, but learned the Chinese lie and will never buy another Chinese stock again. Sometimes I sell if I make a lot, and regret it, like after NVDA doubled I sold and it kept going up. The longer I play with this I find the best thing I can do is nothing. Just buy companies I understand, and hold them. Examples are Northrop Grumman, Cisco, Google, Apple, Elst, RTN, Microsoft, FSLR, and love dividend stocks, I used to buy individual Big Pharma, but prefer IBB, FBIOX,, Waste Management, RSG, LUV, ALL, MLPG, Intel, HII, Boeing, TSLA, (I believe in Musk), Amazon, ONB,BAH (Law firm with great government contracts), DIS, KTOS (Lasers and drones), VWDRY (largest windmill company in the world), ZN (Now that’s an opportunity to make money), most everything else are cannabis stocks and lots of ETFs, GOLD, and BND Vangaurd’s bond fund. Most every thing I sold over the years, other than Chinese stocks, I regret selling.

Myles Berry: Averie Boyd: Thanks for the explanation. When I said sell though I meant how far out in expiration Ray was selling the covered calls. I agree with the buy and hold outlook however right now I’m not willing to enter any longs. Whether it’s 6 months, 1 year, or 2 years things are going to begin a long downtrend… I’m ok with missing out on 5-10% gain to avoid the looming 30-45% drop when this thing implodes. The list of companies you listed are all big for me. Especially FSLR and KTOS, that’s regardless of what the market does with those. Each would go down but not in line with some of the others listed.

Averie Boyd: Myles Berry: I do not think the defense industry will go down during our Right Wing Coup, peace is not about to break out. And, even in 2008, Northrop Grumman stock rose. Yes, I may dump stocks when the political environment changes. FSLR, as an example some risk, but the world is moving to clean energy regardless of what the idiot in the White House says. I’m looking at a 10 year or so horizon or more. Luxury stuff, I’d sell in a heartbeat at the first sign of a downturn, like CCL, Apple, most ETFs and such.

Maddison Peters: Buying dividend yielding stocks and high growth high risk stocks are two completely different investments strategies. It shouldn’t deter you from purchasing them and if it does then this investment vehicle simply does not fit your investment criteria.

Averie Boyd: As I said, these stocks break all the rules.

Maddison Peters: Also the ETF is available on the US market under the symbol HMLSF

Averie Boyd: Strangely, Fidelity doesn’t give their holdings.

Averie Boyd: And a google search Finance.yahoo.com

finance.yahoo.com
HMLSF Holdings | HORIZONS MARIJUANA UNITS CLASS Stock – Yahoo Finance

Maddison Peters: Hmm that is odd I can see it on TD Ameritrade. I also wouldn’t bother with it IMO. The weighting is off and you would be better off creating a nice little diverse portfolio of canna stocks you have done your own DD on.

Averie Boyd: This does Bloomberg.com mostly stocks I bought.

bloomberg.com
HMLSF Quote – Horizons Marijuana Life Sciences Index…

Averie Boyd: Maddison Peters: I didn’t realize till after I bought it, they add an extra $50 fee buying it. I hope if I hold it long enough, they will go to the trouble of registering so I can sell without that $50 extra fee. If I realized I would not have bought it. Stupid mistake.

Jennifer Hill: These were my stock picks from AUG 7th. First price was then, second price is not. GWPH has a 2 billion dollar market cap by the way. ACBFF $1.93 – 2.25 APHQF $4.70 – 5.449CRBP $5.77 – 7.00AXIM $7.15 – 6.29CARA $13.37 – 13.24ABBV $70.47 – 84.89GWPH $111.99 – 110.60

Averie Boyd: I have 10,000 shares of GWPH, and it’s less than 10 cents a share.If it reaches it’s potential, I’ll make a fortune!

Averie Boyd: ACBFF has some of the most cost-effective growing technologies, and have avoided some expenses to produce medical grade Cannabis at a low cost. I still prefer Chronus, partnered with Kibbutz Gan, as Kibbutz Gan has extensive agriculture expertise, and already has an existing export business, and frankly, they have a lot of brains.

Maddison Peters: Averie Boyd: What do you mean less then 10 cents a share? GWPH is currently at $110

Jennifer Hill: Averie Boyd: Those are three stocks I know of that are over $10 a share. Not sure why you think GWPH is 10 cents. I think you have it confused with another company.

Averie Boyd: Jennifer Hill: Boy, I got that one completely wrong. I was thinking of MJMA which if it survives will be worth a fortune. I would look them up. They already have hemp/cbd products in the market.

Jennifer Hill: Averie Boyd: I have MJMA already. Hoping they fly. But the few weed stocks I have are all cheap and I’m hoping just one of them hits a few dollars lol

Averie Boyd: GWPH price and Bear MArket rating scare me.

Jennifer Hill: This whole market scares me lol

Myles Berry: Owning MJ stocks with Sessions in office will never amount to much. Need federal rescheduling before they’ll ever take off to the point where PM and other players begin acquiring and that’s when MJMA shoots up. Just my 2 cents…

Madeleine Bush: Big tobacco will want a large piece of the pie once they see these companies become profitable.

Averie Boyd: We know that. California is doing what they can to prevent that, carefully giving out licenses.

Madeleine Bush: They can buy out a company with a license or use their lobbyist to obtain a license.

Averie Boyd: Madeleine Bush: Things are different in California. Big Tobacco could already have come in, but has not been able to. Everything will need to be re-licensed in 2018. My girlfriend is going through all the paperwork so I’m familiar with it. The industries in California are planning to use a cooperative model rather than competitive. It’s amazing to see it develop. IN contrast to Nevada, where they charge 27% Tax and the workers don’t know the produts. There it’s all about money.

Madeleine Bush: Averie Boyd: Sounds like a smart move on what California is doing but it also sounds like this business model will not allow big profits.

Averie Boyd: Madeleine Bush: Well, my girl friend, who worked in Big Pharma for years, her first product, that EVERYONE wants, are bath salts. California themed, with California salts, and whole plant processing, because of the 80 or so active ingredients and terpenes, which are responsible for aroma. And, she infuses a lot of extra CBDs. Her competitors, with vastly inferior products, are selling for between $40 and $70. It’s trivially simple to make, and the markup incredible. There’s gold in them bath salts. A lot of women that tried them go absolutely crazy for them. And she’s making pain creams. A lot of it is proprietary, she will take longer to bring them to market, but she understands all the rules for cosmetics of the FDA, including bacteria and fungal control, batch testing, high amounts of CBDs. Everyone she has given samples to begs for more. My cousin had a broken wrist weeks old, very painful and swollen. After 30 minutes of her pain cream, the swelling and pain were gone. Other people have used it for skin conditions as our skins have CBD-2 receptors and are part of the cannabinoid system. There will be plenty of profit.And, even with a BS in Food Science, and used to own a slow cook gourmet restaurant, and is an expert on edibles, she is not going into that.Of course, the companies, with her background, during her course at Oaksterdam University all wanted to hire her, but she prefers to be her own boss and her own business. I would highly recommend people interested in this industry learn the science. I would start with watching videos on Ted Talks of Raphael Mechoulam or any video. He was the scientist that discovered THC, 80 other active compounds, and the functioning of the entire Cannabinoid system. He has over 100 papers published in the top scholarly peer-reviewed journals in the world. Because of our draconian laws, and especially Jefferies, clinical trials have been delayed, sitting on his desk. But they are being done around the world, but especially Israel. The IDF is now giving brain trauma victims CBDs, and they are now giving it to people with strokes, because of the neuroprotective effects of CBDs.The science is amazing. Big pharma wants to isolate individual active ingredients, make a synthetic version of it, and then patent and sell it. Like Florida has synthetic Marinol, which is synthetic THC. While it will help people with Chemo eat, the actions are very limited.The frontiers are amazing. Cannabis looks like a promising treatment for Alzheimer’s for example. THC removes the amyloid plaque while CBDs are neuroprotective and help the brain form new connections, so their brains with dementia or Alzheimer’s will function better. Mechoulamthescientist.com

mechoulamthescientist.com
The Scientist | The story of Raphael Mechoulam and the endocannabinoid…

Reid Harris: So do you think it will split into 2 markets – Big Tobacco mass produced and “Indie” Boutique ?

Averie Boyd: Since it is individualized by state, and not controlled on the Federal level we will see a lot of variety. And of course, international everything changes, except the industry will be producing products for markets around the world. Israeli companies have contracts with German companies to deliver products for example. America’s federal laws put the US at a huge disadvantage in this exciting and very lucrative research. Why? The For-Profit Prison Industry lobbies Congress with big money to keep Cannabis a schedule 1 substance because it creates inmates, that they make a profit off of and use as slave labor.And Big Pharma wants to fight the people’s plant, as they want only products they can patent, and you can’t patent nature.

Myles Berry: Averie Boyd: I concur, you left our civil forfeiture laws and the alcohol lobby. They are among some of the other reasons federal rescheduling will likely not happen prior to 2020, not to mention Jeff Sessions.

Myles Berry: Insys (INSY) spent millions to fight whole plant CBD oil in Arizona their home state. Meanwhile producing fentanyl substrate ??

Paisley Reid: No thc?

Averie Boyd: THC is easy and inexpensive. CBDs are much more expensive. Any product with a lot of CBDs will be expensive.

Lincoln Morton: Boom already happened…

Noelle Caldwell: Go North. Canada. Will become a global producer and not to mention that atm its merely medicinal. Recreational starts july 18′ which is when these companies will start making a boat load.Canopy growth WEEDAurora Supreme SPRWFOrganigram MedreleafAre the top atm.

Noelle Caldwell: As an outside investment… Miracle grow (scotts) for all of the soils, growth chems, etc…

Averie Boyd: Yes, I know, but ethics figure into it, and they make a lot of products that are horrible for the environment. Like investing in Monsanto, regardless of the potential profit, it would be blood money. I will not put my money in the hands of people that hurt society. I will not invest in things like For-Profit Prisons as a comparison.

Noelle Caldwell: Fair point. Just throwing it out there.

Noelle Caldwell: Shana tova btw 🙂

Averie Boyd: Here;’s what I currently own. ACBBF, APHQF, EMHTF, HMLSF, IVITF, LXRP, NXTTF, PRMCF (my favorite), RQHTF (up 32%), TWMJF, VFFIF (up 38%), and MJNA. So, I created an ETF of companies that all look like they have great potential, real science, from the various parts of the industry. MLSF is an actual ETF, but I didn’t realize when I bought it on Fidelity there was an extra $50 foreign transaction fee.

Raelynn Jefferson: TRTC:- vertically integrated company structure = huge cost savings

Averie Boyd: They seem to be good at losing money so far. I’ll keep an eye on them. They are into storage, but their earning per share are going down, and that scares me.Perhaps it’s better to have separate growing and production, as they are so different. Like I recommend Chronus, since they have great science, and partner with Kibbutz Gan, a leading agricultural company with state of the art expertise in growing and exporting food, So Chronus simply merged with the best and brightest in the Industry.

Raelynn Jefferson: Averie Boyd: their EPS have been getting better, they have explosive YoY growth, expanding storefronts, as well as multiple acquisitions within the last year. CEO is also ex Merrill lynch.. I’m holding

Averie Boyd: Raelynn Jefferson: They look interesting, but I do look for signs of early success, not how they are correcting things. I put a buy order if it drops some more. Look, you’re taking your chances, we all are, but I think the odds in this case are in our favor.

Raelynn Jefferson: Averie Boyd: lets hope so. I’m in avg price of .21 but I’m wanting to add a bit and lower that average. Buyout would also be possible scenario

Averie Boyd: I found there’s an extra $50 trading fee with Fidelity on top of their normal commission. So I’ll pass. I got hit with a few of those going in. It means the company has not registered. At this point I won’t do that.

Dakota Sutton: Thoughts on GBLX?

Averie Boyd: I like their cooperative deal with LU, to research and discover medical uses.

Dakota Sutton: Yesss That’s why I started watching them. I think if and when they start showing revenue, their share price will skyrocket.

Averie Boyd: One of the most amazing things in Cannabis Research is treatment and prevention of Alzheimer’s. THC has been shown to remove amyloid plaque from the brain, while CBDs help the brain establish new connections. I would watch some videos about Raphael Mechoulam. I notice an India company is going into R & D for Alzheimer’s treatment. IGC is going after that. In Israel the IDF now gives Trauma patients CBDs, brain injuries, and for strokes.Israel remains the scientific leader, and a lot of the credit for the entire industry must be given to Raphael Mechoulam. He has some great videos on You Tube, which should be required watching for ANYONE interested in Cannabis, as an investor or user.Here’s as good a place to start as anywhere. Youtube.com

youtube.com
The Scientist (Dr. Raphael Mechoulam)

Elliot Silva: Mcig

Melany Lloyd: Have you looked at xxii. Industrial hemp plants with 0 thc and low level nicotine cigarettes.

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