Marijuana Will Be the Single Best Investment Idea?

Todd Harrison believes that Marijuana will be the single best investment idea of the decade.

But while the public has watched recreational marijuana take off in Colorado this year, how can they profit from it as an investment theme?

Harrison believes it will be driven by the broader legalization of marijuana, inspired by states’ need for tax revenue. He points to expectations that legal marijuana use is expected to generate $134 million in tax revenue for the upcoming fiscal year in Colorado, the first state to allow recreational marijuana. That’s  nothing to sneeze at, and Harrison calls the state the “litmus test” for broader legalization. Harrison also cites the expected decline in crime rates and  prison populations as powerful incentives to decriminalize  marijuana.

Advanced Cannabis Solutions (CANN), soared 62% in a single day when its stock chart was shown on CNBC earlier this week — even though it was a mistake, and the anchor was actually discussing another company in the cannabis industry, called CannaVEST (CANV). Advanced Cannabis Solutions leases growing facilities to legal marijuana growers and dispensary operators. CannaVEST makes hemp-based consumer products. (CORRECTION: An earlier version of this story said that Advanced Cannabis Solutions soared 62% in a single day when it was mentioned on CNBC earlier this week.)  

While I agree with Todd, and I live in Colorado; be very careful if you’re going to invest in stocks. For example, the stock mentioned above, CANN, went from $1.55 to $64.64 in a year and looked to be a great idea. However, on the 27th of this month the SEC suspended trading in the stock. It said:

An SEC report questioned the Colorado based company, inquiring about the possibility of undisclosed affiliates and shareholders unlawfully distributing securities.

As a result, shares of CANN are suspended until April 9, 2014.

In future posts I’ll discuss who is really making serious money in the 420 business and the many wanna be’s!

Leave a Reply

Dansette