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Trading Marijuana Stocks
The state of Colorado has legalized marijuana for recreational use. Is there money to be made trading marijuana stocks? Technical analysis of these stocks may be difficult because of small trading volume. But, if other states adopt similar laws, trading marijuana stocks could be profitable to get in before stocks surge and get out before they level off. So, before we look at trading marijuana stocks let us look at the law in Colorado.
Colorado Law Regarding Marijuana Use
Colorado has two sets of laws regarding marijuana. These have to do with recreational use and medical use.
Colorado Amendment 64 says that:
adults aged twenty-one or older can grow up to three immature and three mature cannabis plants privately in a locked space, legally possess all cannabis from the plants they grow (as long as it stays where it was grown), legally possess up to one ounce of cannabis while traveling, and give as a gift up to one ounce to other citizens 21 years of age or older. Consumption is permitted in a manner similar to alcohol, with equivalent offenses proscribed for driving. Public consumption remains illegal. Amendment 64 also provides for licensing of cultivation facilities, product manufacturing facilities, testing facilities, and retail stores.
This law allows for sales of marijuana for recreational use, taxation of profits from these facilities, and various ordinances relating to such establishments. It is the potential for profit from recreational use of marijuana that is of primary interest in trading marijuana stocks.
5. But, if other states adopt similar laws, trading
marijuana stocks could be profitable to get in
before stocks surge and get out before they level
off.
6. So, before we look at trading marijuana stocks let
us look at the law in Colorado.
10. adults aged twenty-one or older can grow up to
three immature and three mature cannabis plants
privately in a locked space, legally possess all
cannabis from the plants they grow (as long as it
stays where it was grown), legally possess up to
one ounce of cannabis while traveling, and give
as a gift up to one ounce to other citizens 21
years of age or older.
11. Consumption is permitted in a manner similar to
alcohol, with equivalent offenses proscribed for
driving. Public consumption remains illegal.
Amendment 64 also provides for licensing of
cultivation facilities, product manufacturing
facilities, testing facilities, and retail stores.
12. This law allows for sales of marijuana for
recreational use, taxation of profits from these
facilities, and various ordinances relating to such
establishments.
13. It is the potential for profit from recreational use of
marijuana that is of primary interest in trading
marijuana stocks.
15. Colorado Amendment 20 allows for the use of
marijuana in the state for approved patients with
written medical consent. Patients may possess up
to 2 ounces of medicinal cannabis and may
cultivate no more than six cannabis plants (no
more than three of these mature flowering plants
at a time).
16. Conditions recognized for medical cannabis in
Colorado include: cachexia; cancer; chronic pain;
chronic nervous system disorders; epilepsy and
other disorders characterized by seizures;
glaucoma; HIV or AIDS; multiple sclerosis and
other disorders characterized by muscle
spasticity; and nausea.
17. Colorado medical cannabis patients cannot fill
prescriptions at a pharmacy because under
federal law, cannabis is classified as a schedule I
drug. Instead, patients may get medicine from a
recognized caregiver or a non-state-affiliated club
or organization, usually called a dispensary.
19. When considering how to trade stocks in this new
arena, one should always consider the adage
from the California gold field days of the mid-19th
century.
20. There is often more money to be made selling
picks and shovels than in digging for gold.
21. There are those who will be growing marijuana,
those who will be selling it or potting plants or
seeds, and there are those who will be providing
the infrastructure needed to sell marijuana.
22. Here are a few examples of folks who may make
money in the world of recreation and medical
marijuana:
23. GreenGro Technologies sells growing systems
and equipment to marijuana farmers. Its stock
went up fifty percent of late
24. GW Pharmaceuticals deals with medicines
derived from marijuana. Its stock rose a few
percent at best.
25. Hemp, Inc grows industrial hemp and sells hemp
seeds as food went up fifty percent.
26. MedBox makes high-security storage and
dispensing machines for controlled medicines. Its
stock rose by fifty percent.
27. MediSwipe Inc sells financial processing systems
to the medical industry. Its share price recently
climbed by about 70%.
28. Two California firms dealing with marijuana for
medical use rose in price,Medical Marijuana Inc.
and Cannabis Science.
29. The potential size of the market is probably in the
tens of billions of dollars albeit illegal at the
current time.
30. The estimated size of the legal market in the USA
is a billion and a half and expected to hit two and
half billion dollars a year with use by marijuana
tourists and users coming in out of the shadows.
