August 26, 21: See our Newsletter 28: From Marijuana Business:" ...."analytics firm New Frontier told the Orange County Register. Both Colorado and Washington have legalized recreational marijuana sales, but California sales would dwarf those in other states.
Will this November be the beginning of the end for cannabis prohibition?
On November 8th American voters will turn out in record numbers to make the much-maligned choice between Hilary Clinton and Donald Trump. But those in Arizona, California, Maine, Massachusetts and Nevada have another choice to make, whether to regulate and legalise cannabis.
Most attention is focused on California, which already has the lion’s share of the current $5.7 billion legal US industry. The Californian market alone is set to grow to $6.6 billion by 2020 in anticipation of a yes vote. Proposition 64 is the last option standing in California after 21 different proposals for various forms of cannabis legalisation have been whittled down to just one. Much has been made of the infighting among the pro-legalisation movement about the wording of the proposition, but most of the dissent now seems sated.
Compromises have been made by all parties, and the foundations of good campaign finance and strong polling are in place.
Proposition 64 looks highly likely to succeed, but is this at the expense of the other states?
Proposition 64 is by far the best-financed campaign of any of the five states, as of 16 August 2016, the support campaign had over $11,453,469.31 in funds. Compare that to only $498,591.60 in Massachusetts. California also polls the strongest. A recent poll by the Berkeley Institute of Governmental Studies at the University of California put support in California for legalising cannabis for recreational use at 63.8%. In Nevada polling consistently puts support below 50%.
The cannabis industry has been conspicuously insignificant compared to private individuals and wealthy philanthropists in the funding of the five initiatives for legalisation. Many of the thousands of companies currently operating in the fragmented and complicated markets may see widespread reform as a threat to their survival, or simply lack the resources to fund attempts to open new markets. This is sure to change after California, when more funds will be available for later initiatives. But could this be too little, too late, if the other, poorly-funded, campaigns flounder and fail, as looks likely in Arizona and Massachusetts and possibly Maine and Nevada?"
December 2, 2015
How to Make Money In the Marijuana Stock Market
Strong THC(Skunk Marijuana) is Harmful to the Brain
I found this study to be the most important marijuana information on strong“skunk” THC that I have read in 3 years. The cannabis industry has hyped marijuana as not dangerous and harmless for both recreational and medical marijuana. There are many studies supporting non dangerous cannabis. This article contradicts most of the many studies I have read and researched.
“Smoking especially strong pot — or skunk — may damage nerve fibers responsible for sending and receiving messages in the brain. A study published Friday from researchers in Italy and the U.K. found a bigger effect on the corpus callosum in people who smoked high-potency cannabis than people who smoked marijuana with lower levels of THC or those didn't smoke at all. The corpus callosum is that thick band of nerves in the center that connects the left half of the brain with the right.
These are the same researchers that earlier this year said the easy access to skunk in London could be behind a rise in psychosis reports linked to cannabis. They say this study shows there's possibly less transfer of information between the two halves of the brain. The study concludes, "Since high-potency preparations are now replacing traditional herbal drugs in many European countries, raising awareness about the risks of high-potency cannabis is crucial."
The researchers don't outright call skunk dangerous. It's more of a warning that monitoring THC levels — just how strong pot is — is important. One researcher told The Guardian,"When it comes to alcohol, we are used to thinking about how much people drink, and whether they are drinking wine, beer, or whisky. We should think of cannabis in a similar way.“
Most people know that pot users go for the highest high and strongest THC as they do with any drug or alcohol. The higher the better… The cannabis industry has been founded on the justification and rationalization that THC is not addictive or dangerous. It supposedly has killed nobody. How many car fatalities involved pot, alcohol and other drugs? Is it good for the brain? This study alone can determine the course of legalization and acceptance of cannabis for the entire cannabis industry.
Tuesday May 19, 2015
IF THE CANNABIS INDUSTRY IS GROWING SO FAST
WHY IS ITS STOCK MARKET CONTINUING TO CRASH?
The Cohen Grassroots Marijuana Index is currently composed of 286 publicly traded stocks. The Index is unique and is growing. We divide the industry into 10 different sorts. The cannabis stock market is now down -37% year to date.
Market Cap – 4 Tiers
Sub Sectors – 8 Tiers
Medical/Recreational/Hemp Overlap stocks
We are in depth securities and valuation analysts operating at the highest level of academic securities analysis. We are able to compare companies and industry groups, one against another, compare ratios, metrics and statistics to determine valuations and price targets.
We believe there are many reasons for the Marijuana/Cannabis Stock Market Crash. We don’t know all of them. We do know most of them. There are a number of clear and obvious reasons for this crash. Investors represent the cumulative psyche and worth of a given industry’s stock market. Investors in this stock market have given this industry a decided thumbs down. Let’s examine the important reasons:
Black Market participants are alive and well. Many have infected public companies
Illegal activities in both the black market and public companies continue unabated.
“Drug Speak” has infected family values and the social consciousness of our nation
Day trading recommendations that have lost money for investors
False analysis of THC
The industry is still Federally Illegal
The industry is closed to banking
The industry as a whole cannot raise cash, sell anything and is cash short
Money and greed powers the growth of the industry
Politics for self-serving politicians responding to self-interests and their constitutionals.
FINRA and SEC rules crushing investor flexibility
Brokerage firms restrictions
Absence of Short Selling
Money losing breeds more money losing in the stock markets
Profile of the average cannabis/marijuana trader $5,000 - $15,000\
Trading in the penny stock markets does not work.
Pump and Dumps versus legitimate investor awareness campaigns.
The Good Old Boys Club hyping the industry
No industry spokesman speaking against its self-interests.
Confusion between Medical and Marijuana
Justification of Recreational overlaps into Medical
Monday March 16, 2015
I am quoting Paul Cohen's Marijuana Hub March 16, 2015 Newsletter
How to Make Money In the Marijuana Stock Market
Issue #5: Investor Sentiment: “Hey Man, That Ain’t Right”
uNFL Legend, Dion Sanders’s mantra is: “hey man, that ain’t right”. We’ve all heard it on NFL media many times.
uWell, the collapse of the marijuana/cannabis stock market ain’t right. Why has this market tanked?
uFirst, the Cohen Grassroots Marijuana Index is now down 20% since the beginning of the 2015 year. In 2014, the market exploded, got crushed, taking a round trip after the SEC halted trading in Growlife, PHOT, in April of 2014. Growlife was the industry’s poster child. Invalidating PHOT was all it took to knock the air out of the balloon.
uSince that time period, the cannabis industry has exploded: new products, new companies, massive hype, new newsletters, new magazines, new people, new inventions, conventions, new innovations….the list goes on and on.
uLogic dictates that with all of this good stuff happening, the marijuana stock market should be following all of the hype and good stuff. It should be going up. In fact, it has done the opposite. Investors don’t want any part of it.
uThe BETTER the industry growth explosion, the WORSE that stock market has performed. “Hey man, that ain’t right…”
uLet’s make a few guesses. This is an industry with little cash, little ability to raise cash, poorly managed for the most part, many companies will go out of business, an industry that cannot sell much of anything for the most part, has bloated capital structures in the form of shares of stock issued and authorized. This industry has not performed fundamentally. Hype and Press Releases rule the day. News releases do not create revenues and cash flow.
uThese are keys: The new U.S. Attorney General is against legalization. The Federal government can shut down Colorado any time it wants to. The industry is illegal and is Schedule 1. Legalization is down to 51% and 52%. If it drops into the 40% area, this nation is saying no to the power of THC. While medical will survive, I see the opposition to this industry as becoming socially stronger. Families don’t want this stuff available to their kids.
uThe marijuana industry has been compared to alcohol’s legalization. This country may be waking up to the fact that marijuana today may be much stronger and more dangerous than alcohol, despite the rationale that it is not. Stock markets reflect the will and view of the people. Performance of this marijuana stock market reflects investor and social sentiment. Investors are not buying the hype. I see only a rescheduling to Schedule 2 to legitimize the industry.
February 15, 2015
We are starting a series of newsletters questioning how we can make money in the marijuana stock market. This market segment is dead. At this writing the 275 company Cohen Grassroots Marijuana Index is down 10% since January 1, 2015.
It has no juice despite massive amounts of information, press releases and hype. Is the jig up? We will ask that question. We will also ask, can you make money in this kind of penny stock market? The answer is yes.
Newsletter #96, February 15, 2015 begins a series of analysis roadmaps to help our readers make money in a dead penny stock market. What went wrong here? Why has performance been so poor?
We will create an intelligent roadmap to help you make your own informed decisions. This roadmap for research has served me well over the years. It will help you think your way through your research process. Remember: the purpose of our website is to help our readers make money in the marijuana stock market. We analyze daily a huge amount of data into short bullet points in our newsletters. These conclusions are powerful and helpful for your investment decisions.
January 27, 2015
Please read our newsletter #86. Its importance cannot be overstated. It deals with MBank that reversed itself after one week, canceling banking marijuana companies in three states. The Feds came down on them. I see the issue as more serious. How would a bank know if their client is legal or not? They do not have the knowledge sophistication of this industry. The conclusion is that this industry is facing serious problems finding normal banking relationships. If banks will not accept cash, where will many of these companies stash cash? Golf bags, laundry bags, backs of trunks in cars? It is a serious problem that only changes in state and federal laws can solve. If the foundation of this industry disallows normal banking relationships, share prices will certainly reflect these problems. 2015 should be interesting in relation to banking this industry. I do not see near or intermediate solutions in 2015 for this critical issue.
January 3, 2015
Looking into 2015, I see a number of problems for the marijuana stock market to turn around. Please click into our January 3, 2015 newsletter. Problems include the SEC citing other visible companies, interstate transportation of THC products, banking issues (which banks will and will not lend), raising cash, depositing cash, auditing private companies that wish to go public or become sales candidates and other legal and regulatory issues. The history of this industry has been corner cutting people looking for an edge. The black market is run by these kinds of people. Many of these companies now employ people of these backgrounds. Management, integrity of corporate responsibility, accounting for flows of cash and funds, ability to bank revenues, raise cash, accounting for cash, legal compliance all become the most important metrics for selecting a company in which you intend to invest, regardless of their business models.
The 2014 bull market is now over; dead and gone. I do not see it returning. I do see fundamental corporate results determining share prices. This is a time to pick tomorrow's winners. They are there at bargain prices. Please follow our newsletters. They will help you to intelligently invest.
While there is and will be good news such as California's dispensaries being left alone, there will always be negative news counter balancing the good news such as Florida's political football, or DC's problems.
The only way I see a major stock market turnaround for this industry is if marijuana is moved from a Schedule 1 drug to Schedule 2. If this does happen, the dogs will run loose once more and happy days may return in the 2015 marijuana stock market. If not, this is a time to do your research in depth, pick your winners, be patient, forget about trying to trade in this market, and know what you are doing. We will help you find the diamonds in the rough.
This page is designed to share bottom line thoughts on the marijuana/cannabis industry. The purpose of our website is different from other websites. We sift through an enormous amount of information. We distill this information, targeting your investment decisions in this industry. We 'Bottom Line' everything keeping our communications and newsletters short and sweet. People fall asleep reading too much information
Our website is free for all readers. We do not intend to inundate you with numbers of emails, press releases or solicit anything at this time.
I believe I might have been the first Wall Street research analyst and visible personality more than 3 years ago to begin understanding and doing our research into this industry. While the industry was growing, essentially there was little or no Wall Street IR Research. It took me about a year or so, meeting the key people in the industry, to understand the structure, backbone and technology.
After this time period, we initiated coverage on MJNA. It went from 3 cents to 50 cents. MJNA was a good company to learn about this industry. After MJNA I knew Growlife (PHOT) would be the next poster child of this industry. That stock went from 3 cents to 80 cents. It took a round trip and hit 2 cents late this year. We think it will recover.
Our business is unique in this industry. We don't think anyone else does what we do. Our quality is unmatched.
The Cohen Grassroots Marijuana Index now comprises 275 companies. We have developed a model for this industry that allows us to analyze it, we believe, in the most comprehensive depth of any research firm.
We write in depth IR Research reports on marijuana/cannabis stocks and other industry companies, provide email blasts to millions of investors, write Business Plans, Structure Pre-Public deals, build a company's Master Budget and Consult with them. We are a one stop shopping center. My primary firm, Cohen Grassroots Research, Inc., is considered by many to be the leading Wall Street IR small cap research firm. We are an impressive Brain Trust.