Pot Alert: Buy! Buy! Buy!

by Vlad Karpel

RoboStreet – May 23, 2019

Recreational Weed Rally About to Erupt

Free use of pot in publicly designated café is now upon us

The long-awaited legislative agenda to legalize recreational use of marijuana is now upon us. Several states have already moved to allow for the free use of pot in publicly designated café locations and places of distribution that have smoking lounges.

Still no one under 21 can buy weed

In contrast, it’s a bit odd that no one under 21 can buy weed in any state and no one of any age can legally smoke weed in public yet. However, citizens of the states that have legalized weed for recreational purposes can possess up to an ounce and those with medical cards can check it at a TSA counter when leaving a legal state. We live in crazy times, and it’s only going to get crazier.

Legalized pot chart

Darkened states represent where recreational pot use has been legalized.

Source: www.governing.com


 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

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Millions of investors and traders are clamoring to strike gold in this inevitable secular trend that stands to sweep across America and the rest of the globe over the next decade.

Moral hazard, but the tax on pot seems too good to pass up

One can argue the moral hazard of such a great unfolding acceptance of legalized marijuana for purely pleasure and the scientific evidence supporting the fact that consistent use can lead to harder drugs, but with most states and international federations swimming in debt, the tax on pot seems too good to pass up.

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No way of stopping the trend of legalization of pot

Hopefully, a proper and responsible balance of legalized recreational weed use will emerge, which is the best-case scenario. But like many of society’s questionable agendas, there is little in the way of suppressing this trend to becoming a domestic and international norm.

Potential profits huge from investing in this sector

Understanding this societal change and the scope and scale of its impact is like trying to lay hold of the investment proposition of legalized alcohol following Prohibition. Good, bad or indifferent, the potential profits are just huge for those invested in the right companies.

During last year first companies were listed on excahnges

During the past six to twelve months, investors have had an opportunity to survey the reefer landscape and examine the various companies that were first listed in Canada and now many of which are currently listed on U.S. exchanges.

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Majority of money invested in roughly only ten stocks

A lot has certainly happened in a very short span of time and today the hot money is centered on roughly ten stocks that have the full attention of the capital dedicated to this sector.

Tilray Inc. (TLRY) in focus

One such stock that is all the rage within the “pot rush” to riches is Tilray Inc. (TLRY) whose IPO euphoria made Lyft, Pinterest, and Uber look like child’s play.

Tilray listed on exchange in July 2018 at 17$

Tilray came to market in July 2018 at $17 per share, raising $153 million when the company was reporting sales of $17 million and losses of $18 million. This is the stuff of historical tulip rallies. But it gets even better.

Tilray after two months of trading soared to $300

The stock opened at $28 and within two months, soared to $300 per share on nothing short of manic buyers that must have been “high.”

www.tilray.com

Since that ebullient moment, shares of Tilray have gradually fallen back to earth and trade today at around $45 now that some recent financials show that money just doesn’t grow on pot plants that quickly. In the company’s first quarter release Tilray reported revenues of $23.0 million, up +195.4% year-over-year, but hardly justifies a 44.5 billion market capitalization. This is where the age-old fight over promise versus valuation comes into focus. Could pot stocks like Tilray be another Amazon.com or Tesla?

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Tilray’s increased revenues were driven by none other than the legalization of adult-use weed consumption in 2018. The company lost $30.2 million for the quarter compared to a loss of $5.2 million for the prior year quarter, when translated in Wall Street lingo is a bonfire of cash burn. Every noble cannabis company forwards the mission statement that they will succeed by providing medical means to a hurting world, but rest assured, the bigger profits to be secured on a long-term basis are to own space in the recreational usage market that will soon be in a Starbucks near you.

No one really knows how this will all turn out. It might be a pot of gold or a sack of commoditized coal. Sounds like a market proven and time-tested platform built on artificial intelligence should be the solution to figuring out if and when to by hot pot stocks like Tilray. I wouldn’t go anywhere near this sector without some extra Bitcoin cash laying around…unless I had a leading-edge set of tools to hone my trades within the sector. This is what we do with Tradespoon’s RoboInvestor advisory service.

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There is no question I want to be a player in this white-hot theme that is without question coming to a neighborhood near you. Playing it intelligently separates the few winners from the ocean of greedy losers. My AI tools have produced solid winners in an otherwise uncooperative market of late. While the market has been consolidating during the month of May, investors that put $10,000 to work in each of the RoboInvestor trades recently closed out have booked profits of $324 in the iShares 20+ Year Treasury Bond ETF (TLT), $377 in Alphabet Google (GOOGL), $252 in Abbott Labs (ABT), $433 in Netflix (NFLX) or $798 in Starbucks, for realized gains of $2,184.

I keep a rolling portfolio of approximately 20 stocks and ETFs working constantly so that we can keep the $2,000+ per month steady stream of income generating profits rolling in. Making money in the market is not a monthly or yearly thing, it’s a daily and weekly thing and RoboInvestor is very good at delivering on this discipline. In fact, over 93% of the trades I recommend make money to the tune of 4.75% as an average gain, and that’s not a typo. That’s the power of AI and the winning ratios Roboinvestor delivers.

Take a test drive with RoboInvestor today. I’ve put my highest level of intelligent tools to work for those that want to get the most out of the market without having to day trade it. I invite all investors engaged in this column and the current difficult market landscape to put me and my AI tools to work for you right away.

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 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

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