- Investing in Promising, hemp industry has been the focus of potential investors for some time
- Today we look at the opinion of one of the financial analysts interested in this sector
"Greetings to the reader! Im glad to share with you my insight into investing in cannabis in the section Hemp I am an accredited financial analyst in Houston, USA, and I have been interested in cannabis since the beginning of 2013. My goal is always to help investors identify the real possibilities and avoid only the seeming ones.
Plousta it has changed in the last four years. No.And with better opportunities for investors, each day goes hand in hand with the growth of solid companies that are committed to the cannabis market and open to investment. But that doesnt mean there are no landmines on this field anymore.
I spent a lot of timeat the time of highlighting them to my investors at the "420 Investor" server, which focuses on publicly traded shares and the "New Cannabis Ventures" portal, which deals with both public and private businesses.
Ill start with a few basic factors that should be considered before investingprivate or publicly traded company.
Private affair: Required accreditation
Investing in private companies can be a much better value-for-money investment. The downside of investment is that investors find it more difficult to sell their holdings - they are less liquid.
These deals are Reasonably available only to accredited investors - that is, you would have to have at least one million dollars in assets not counting your home, income of $ 200,000 a year as an individual, or income of $ 300,000 a year as a family. Once you meet these requirements, you have access to these stores, where the smallest possible investment is typically around $ 25,000, although in special circumstances the amount may be lower but also higher.
Getting access to such deals is not at all dnoduchébecause the investment banks needed to mediate are mostly opposed to hempindustry. Can be connected to "Arcview Investor Network" an investment group and this is one way to deal with this challenge. This group organizes weekend webinars, where it tosses from three to five companies. They also organize a quarterly tour of several cities where they are physically present.Arcview is represented by over 600 of its members, who are indirectly represented by pre-verified companies seeking investors. Through the Arcview network, well-known companies such as Eaze and MJ Freeway have earned their first private funds.
Public road: Open to all
If you would like to invest in public companies that are open to anyone and have a much lighter and faster portfolio trading capability - they are single, then you have over 550 different options. So many companies are trading publicly and just as many publicly traded companies are moving hempindustry.
Dont expect to find them all on international exchanges like NASDAQ or NYSE. Almost all American hemp The companies I follow are traded "over the counter", which means they can be bought on the spot or over the phone, not on one of the major exchanges. Many of them do not communicate with "securities and exchange commisision."", which is always a warning sign to a potential investor.
This sector, which is traded "over the counter" can be quite unstable in terms of price fluctuations. My Own "Cannabis Stock Index" which is renewed every quarter and at the moment is monitored 50 different stocks that meet a certain criterion of speed of trade and price criterion. You went nand the frantic ride of 2014, when Colorado opened the cannabis door for adults, which began to sell normally. Index Risesl seven times in ten weeks to fall back again. In 2017, after a 35% initial boost, he lost about 44% of its value, leaving him down by about 20%, yet.
Ifyou would rather invest in a fund that invests in a hamp rather than choosing your own investment, then you have very limited options. I discovered one mutual fund (unfortunately I will not mention it here), and there is one fund trading on the stock exchange, Horizons Marijuana Life Sciences Index ETF. It is traded on the Toronto Stock Exchange under the symbol "HMMJ". This fund has assets worth about $ 120 million, but there are also a few reasons why I wouldnt recommend it. Several others like him are going to be in my closestAlso, in the near future we will have better opportunities for those who would like to invest in funds.
3 questions to ask
For the four years I have been watching stock capita hemp I learned a few things from companies. Here are three questions to ask before you actually invest.
- There are also better options than such companies, how to "grab a ticket?" Companies that grow, process and sell cannabis products are popular among investors. However, these businesses are in very competitive sectors that could be "commodified" in the future. This would mean that their products could not be distinguished from other products in this sector. It is no harm to consider insubsidiaries in this market, ktthey could remain on the market for a long time or reduce the cost of product production and thus remain competitive.
- Are there any investment options outside the United States? Investing in cannabis is a global opportunity, and the United States, where cannabis remains federally unlawful, is not necessarily the best market. Canada has a rapid rosmarket with a federally legal doctor with whomcannabis Where it is expected that cannabis be legalized for all adults in mid 2018. Him Greece is another potential opportunity. Zlegalimedical cannabis and allowed pharmaceutical distribution and its use covered by health insurance.
- Does the company I am making for my investment produce profit? This is a relatively new question that can be asked about public cannabis companies. At New Cannabis Ventures we update and share a list of companies on their way to achieving a minimum profit of $ 10 million. So far I have identified a dozen such companies and this letter will certainly grow. Profit is just one criterion, but its a nice starting point. Until this year, investors were forced to choose between companies that promised a lot of visions, but very few real results.)
Bottom Line: Investing in cannabis remains a risky challenge. For investors wishing to earn cannabis, the number of investment options continues to grow. California legalization in 2018, followed by legalization in Massachusetts, will continue to remove and undermine the stigmas that surround cannabis. It should also help private and public markets for emerging companies and offer even better opportunities to cannabis investors. "
Brochstein, Alan. "Investing in Cannabis? Ask Questions These 3 Before You Do" Leafly, 7 May 2018