Bloomberg put out an article this morning on a few companies seeking to make money in the medical marijuana industry.
The legalization of medical marijuana -- permitted in at least 15 states -- has kicked off a booming economy in ancillary goods. Startups such as Peterson’s GrowOp Technology Ltd. and General Cannabis Inc. (CANA) compare the phenomenon to the California gold rush, when the people making the real money were the ones selling pick axes and shovels. Both companies are planning initial public offerings, part of an effort to remove the stigma from what’s seen as a multibillion-dollar industry.
Derek Peterson, a former banker from MS, runs GrowOp. This company sells trailers where weed can be grown indoors, equipped with all the lighting, temperature, and water systems necessary to grow the plant.
It seems risky, since law enforcement could shut down the customers at any moment. However, this is a growing market, and if legalization efforts take off, these guys could be leaders in the industry.
Would you guys invest in either of these companies?
Obama made the announcement that there wouldn't be any more raids on dispensaries or groweries in Cali.. and there haven't been any recently
I would invest, provided that they are setting themselves up to compete throughout the entire country as more states legalize weed.
I'd invest in about an ounce at a time.
Haha so true, i want to work for the PE fund who owns them and i can go due quality control...
Man the exit opps from that would be sweet!! Video game testing or some shit.
I own a stake in MJNA.PK
In all seriousness, I think it may be a very lucrative investment if you truly believe weed is going to be legalized.
"This is a growing market"....well duh
And further, you ever priced an option.....on weed?
I'd just buy a futures contract and if i can't make money... take delivery
There's actually a weed Home Depot in Oakland.
http://www.youtube.com/embed/a3RjpuRODhI
There must be BALLS tons of security at that place. I've been to Oakland and the place is not for children.
The most exposure I've had to Oakland is flying into their airport and that was dicey enough.
LOL. Believe it or not, there's an enclave of old Irish people who refuse to leave Oakland despite the fact they basically live under siege.
See Gran Torino and replace Irish with Polak Eastwoodakowski.
"Get off my lawn"!
A couple of things:
1) The legal sale of weed will be a growing market, however the total market (legal and illegal) will undoubtedly end up dropping off, much like you see in Amsterdam.
2) Companies in CA are already trying to expand and are taking to legal battles to make them more viable. Since the industry has been around so long in CA many laws have been passed making it harder to break in, thus a lot of the larger companies are going to other states (such as Colorado) and trying to get legislation passed which will make it harder to grow and sell pot.
I think it's awesome that pot is being made legal, probably some good investments.
It is just like the organic fuels industry, way more money in the sale of equipment than in the actual production of the good...
Just like the gold rush.
I would invest in this company.
Nice.
I am surprised that big tobacco companies like Phillip Morris aren't lobbying for legalization. Imagine buying a pack of perfectly rolled fatties at your local gas station, just like buying a six-pack. Big tobacco is missing a big opportunity.
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