Investing in Cannabis

dashcamdanny

Have any of you considered in investing in the stuff?

I know the the price of stock has halfed since March in the US, but with a shift towards the legalization on medical use and maybe even recreational in Europe,
could it be a new big wave?

There are a few companies that produce and process the stuff to make CBT in Denmark and Germany, which you can now buy in Boots and other major shops here. With the current slump it maybe a good buying opportunity ??

I trade a bit in crypto but have never bought into a company. Looking for some pointers into buying shares in these companies.

Shai

Cannabis is incredibly easy to grow. The barrier to entry as a cannabis producer is super low. I would not invest in any company specialising in just growing the stuff.

The real money is going to be with whoever succeeds in distributing and marketing these things the same way as was done with cigarettes. Look for companies actively looking for distribution deals.

neris

Lot of listed companies & ETFs for cannabis products mainly on American & Canadian markets

dashcamdanny

neris wrote: »

Lot of listed companies & ETFs for cannabis products mainly on American & Canadian markets

Yes
I think the big "400% gains" ship has sailed as far as the US and Canada is concerned.

But Europe is just waiting for an explosive wave . Maybe?? . I seen a few companies like Stanocare that may be worth looking at.

I have always used apps to invest like Binance . Never contacted an actual broker before.
How is fee calculated with them?

Joeyjoejoe43

dashcamdanny wrote: »

Yes
I think the big "400% gains" ship has sailed as far as the US and Canada is concerned.

But Europe is just waiting for an explosive wave . Maybe?? . I seen a few companies like Stanocare that may be worth looking at.

I have always used apps to invest like Binance . Never contacted an actual broker before.
How is fee calculated with them?

Check out degiro... online... very low fees... no fractional share option... but good for small time players..

neris

I use first trade in the states for American stocks they do cannabis stocks

neris

New ETN for the cannabis industry launching

https://www.bloomberg.com/news/articles/2019-12-11/you-can-now-bet-big-on-cannabis-with-first-u-s-leveraged-etn

dashcamdanny

neris wrote: »

New ETN for the cannabis industry launching

https://www.bloomberg.com/news/articles/2019-12-11/you-can-now-bet-big-on-cannabis-with-first-u-s-leveraged-etn

more here. https://markets.businessinsider.com/news/stocks/microsectors-cannabis-2x-leveraged-etn-new-weed-pot-investing-vehicle-2019-12-1028756135

Im not sure what a leveraged ETN is though. Cant see it on Degiro.

bikermartin

Investing in cannabis sounds like a solid idea, especially with the way things are heading toward wider legalization and acceptance.

This content has been removed.

PommieBast

https://www.boards.ie/discussion/comment/122063127#Comment_122063127

Not quite that simple. Germany has put in place rules intended to stop "commercialisation" and looking at Amsterdam it is not a one-way street towards liberalisation.

Layne

https://www.bloomberg.com/news/articles/2024-04-30/pot-stocks-surge-on-report-dea-is-moving-to-reclassify-marijuana

Tide may be turning, US reclassification (not legalisation) but still a significant step forward for the industry.

Peregrinus

The tide would have to turn a lot. Cannabis stock have declined hugely since this thread was created 5 years ago.

The Global Cannabis Stock Index tracks the overall publicly-traded market for the medical and legal marijuana sector. 5 years ago the index was at 94.73; today it's 11.72. Cannabis stocks have lost 87% of their value in that period.

That's not to say that cannabis stocks couldn't rise again in the future; of course they could. But to date the expectation that growing legalisation and acceptance would be associated with greater profitability has not been met. As already noted, entry into the market for producers is easy — the stuff practically grows itself. It's hard for producers or distributors to add much brand value, since consumers are reluctant to pay for that, and cheap unbranded (and often unregulated) supplies are readily available in parallel markets. So margins for legitimate producers/distributors are thin. There's still the potential for a highly profitable medical application, if someone develops a cannabis-based treatment that is highly effective and also novel enough to be capable of being patented, but that hasn't happened at any time in the last 10 years and it's not a given that it ever will. (Plus it's a bit of a gamble as to whether the particular cannabis stocks that you buy will be those of the company that turns out to hold the magic patent.)

I'd say that cannabis stocks are a very speculative investment, whose price in the past has been artificially inflated by sentiment that assumes that, because excess profits are made in the illegal recreational drugs market, similar excess profits should be available in the legitimate recreational drugs market.