Invest In Pot Stocks? I'm In!
I hesitate to bring this up as I don't want a bunch of you getting in line ahead of me. I'm surprised I didn't think of this before on my own. I was on Facebook the other day and noticed some advertisement about investing in marijuana related stocks. With the legalization of marijuana in a number of states recently that certainly opens the door for anyone to make money on it.
I followed the link and ended up here where I found the title suggesting a $50.00 investment could yield a fortune. I know, I know. It's not recommended to follow advice of people hyping stocks as they're often the ones in the position to sell those stocks so of course they're gonna make them sound like great investments.
What got me, though, is most of these pot stocks are what is known as "penny stocks". Those are stocks that only cost pennies each. While the ad claims they can double in value quickly, such stocks don't really make you a lot of money if you're talking about $5.00 for a hundred shares. Still, it's something I could get involved in with little financial risk.
Looking at the charts for some of the stocks mentioned, yep, some did make relatively large gains in the recent past but wouldn't have made much money unless you owned a bunch of them. I'm still thinking of buying into them but there are a few things that are problematic:
Being penny stocks, most stock brokers may not want to deal with them. Cheap as they are, they offer little commission since commissions are based on the value of the stock. My old broker that handled my now defunct retirement fund at Morgan Stanley Dean Witter was usually game for any purchase or trade, but he retired some time ago. I know another guy that used to work there but he retired, too. Then there's my new brother- in- law that works at A.G. Edwards. I might see if he's interested.
I tried to see if there were any marijuana involved mutual funds but was unable to find any. That might have been my choice but it looks like I'm stuck with individual stocks. Stock symbols of those I found are HEMP (who'd have guessed?), MJNA,CBIS, MCDL and GWPH- all selling for around five cents a share or less last I looked.
I enjoyed being involved in investing back when I had an IRA. Maybe this could bring me back to that? I don't see much financial downside since we're talking pennies per share but, as this article in U.S. News points out, there's a remote possibility of arrest for being involved. Remote, being the keyword and it's hard to imagine the feds going after hundreds or thousands of shareholders over their stocks. Then again, this d- bag, Jeff Sessions, Trump's pick for Attorney General, who knows what he might do?
I'm game and still willing to take the chance. Now it's your turn to talk me out of it, but don't go jumping in line ahead of me. Let me lose my house, car and everything else over this first.